You Got an Offer — Now What?
An offer coming in on your FSBO listing is exciting. It’s also the moment where mistakes get expensive. The TREC 1-4 contract is a binding legal document, and every blank you initial or overlook carries real consequences.
Here’s how to handle it — from the moment the offer lands to the day you respond to the inspection.
Table of Contents
▼Before Any Offer Arrives
Don’t wait for an offer to start preparing. Do this now.
Read the TREC 1-4 contract. The entire thing. It’s written in plain English, not legalese. You can download it from the Texas Real Estate Commission website. Read it twice. Understand what every paragraph commits you to.
Know your bottom line. Even without paying a listing commission, you still have closing costs — prorated taxes, HOA fees, possible buyer agent compensation, and possibly the owner’s title policy (though you should negotiate for the buyer to pay that one). On a $400,000 home, expect $8,000-$12,000 in seller costs minimum. Know exactly what net proceeds you need.
Understand the key dates. Every TREC contract revolves around these deadlines:
- Effective date — when the last party signs (this starts all other clocks)
- Option period — buyer’s window to inspect and back out (details here)
- Earnest money deadline — typically 3 days after effective date
- Financing contingency deadline — when the buyer must secure loan approval
- Closing date — when you sign at the title company and get paid
Consider hiring a real estate attorney. TREC’s own contract forms include a warning that they’re “intended for use only by trained real estate license holders.” That’s not marketing — it’s a legal disclaimer. A real estate attorney will cost $500-$1,500 for the transaction and can review every document before you sign. For a FSBO seller handling a six-figure transaction, that’s cheap insurance.
Watch Every Word
If you’re smart, you’ll stay constantly on guard from the moment inquiries start. Even one small slip can cost you. A casual “sure, I’ll include the boat for the right price” shows up as a line item in the contract. A quick “yeah, I’ll fix the fence” turns into a repair clause that says “replace entire fence” — or worse. Every word you say to a buyer or their agent can and very likely will end up in writing.
Once it’s on the contract, it’s a point of negotiation — and you already gave up ground. Maybe they’ll agree to remove “replace entire fence” if you lower the price by $7,000 or give them a $5,000 repair credit. The games always start much earlier than you expect.
Contract Review Checklist
When an offer hits your inbox, resist the urge to look at the price first. Read the entire contract. Then go through this checklist:
Verify the basics:
- Current TREC contract version (check the upper right corner — outdated versions can create problems)
- Correct party names and legal description of the property
- Any exclusions listed (fixtures, appliances, items you’re keeping)
Check the money:
- Earnest money amount — is it reasonable? In Houston, 1% of sale price is standard
- Option fee amount — higher is better for you
- Down payment + financed amount + earnest money = sale price (do the math — errors happen)
- Financed amount matches the financing addendum
- For cash offers, request proof of funds — a bank statement or financial advisor letter dated within 30 days
Review the terms:
- Title company info is complete (if blank, you should specify your preferred company)
- Option period days — 7-10 days is typical in Houston; 14+ gives the buyer a lot of room
- Who pays for the owner’s title policy — tradition says the seller pays, but the owner’s title policy protects the buyer, not you. It insures them against title defects that existed before they purchased. Since it benefits them, there’s a strong argument that they should pay for it. This is negotiable and we push back on it regularly as listing agents. On a $400,000 home, the owner’s title policy runs $2,000-3,000 — that’s real money.
- Survey — existing vs new, who pays
- Closing date and possession date — are they the same? If not, is there a leaseback?
- Special provisions — read every word; this is where unusual terms live
Confirm completeness:
- All signature and initial lines filled in
- All addenda referenced in the contract are actually attached
- Updated preapproval letter (not the one from two months ago — circumstances change)
How to Negotiate
Remove the emotion. This is a business transaction. The buyer isn’t insulting your home — they’re trying to get the best deal, same as you.
Never reject an offer outright. Even if the price is $40,000 below where you need to be. A flat rejection kills the conversation. Instead, counter at your number. If they’re serious, they’ll come back. If they’re not, you’ve lost nothing.
A small counter keeps the door open. Coming down $2,000 on a $400,000 home signals you’re willing to negotiate without giving away the farm. It invites a response.
Not everything is about price. You have multiple levers:
- Closing date — a buyer who needs to close in 21 days vs 45 days might accept a higher price for the speed
- Seller concessions — contributing to closing costs instead of dropping the price keeps the sale price (and your appraisal) intact
- Repairs vs credits — offering a credit at closing instead of making repairs saves you time and hassle
- Leaseback — if you need extra time after closing, a seller’s temporary residential lease gives you breathing room (but avoid agreeing to let the buyer move in before closing — that’s almost never a good idea)
“Accept now or we walk” pressure. If a buyer gives you a deadline of a few hours, take a breath. If they genuinely want your house, waiting until tomorrow won’t kill the deal. Pressure tactics usually mean they’re afraid you’ll get a better offer — which means your home is priced right.
Appraisal gap strategy. Decide in advance: if the home appraises below the contract price, will you reduce, split the difference, or hold firm? Having this figured out before it happens means you negotiate from strategy, not panic. This comes up most often with financed buyers.
Responding to the Inspection
The inspection report will have a list of items. Some will matter. Some won’t. Here’s how to think about each one.
Health, safety, and structural issues — fix these. Leaking roof, faulty wiring, plumbing leaks, foundation problems. If it’s a health or safety concern, repair it before closing. Even if this deal falls apart, the next buyer is going to find the same issue — and now that you know about it, you have to disclose it. Get these done by a licensed professional. Under contract, the buyer or their agent will likely stipulate that repairs are completed by a pro, and the next buyer is going to ask for receipts from a licensed electrician or plumber regardless of how handy you are. DIY repairs on inspection items can trigger a “we need a licensed contractor to verify this” response that creates more headaches than it solves.
Everything else is negotiation. Not every item on the inspection report needs to be repaired. Some of it is preference, some is cosmetic, and some of it the next buyer might not care about at all.
- Buyer doesn’t like the carpet color? Maybe give them a $1,000 credit at closing toward replacing it — or nothing. That’s a preference, not a defect.
- Door sticks? Get a quote from a handyman and offer a credit for the cost. The next buyer might not even notice.
- No GFCI outlets in the kitchen? Some buyers care, some don’t. You can offer them the cost of buying the outlets so they can self-install, or buy them yourself and leave them on the kitchen counter for after closing.
The principle: Any repair that’s buyer-specific or that other buyers may or may not care about, try to turn into a negotiated repair credit. You’re giving them money at closing to handle it themselves — you’re not customizing the house for one buyer who might not close. A credit is cleaner, less risky, and gives them the flexibility to do it their way after they own the property.
Any repair you’d have to address no matter who the buyer is — handle it. Get it done by a licensed professional, keep the receipts, and move on.
If negotiations fall apart during the option period, the buyer terminates and gets their earnest money back. You keep the option fee. Your home goes back on the market. It’s frustrating, but it’s not the end.
When FSBO Gets Overwhelming
Handling offers, negotiating contracts, and managing inspections is the hardest part of selling on your own. The FSBO process from contract to close has dozens of steps, and missing one can cost you thousands — or kill the deal entirely.
If you want professional representation without the traditional 6% commission, a discount realtor in Houston or a 1% listing broker can handle the entire negotiation for a fraction of the cost. You get the expertise. You keep more of your equity.
That’s what we do at Creekstone. Full service, 1% listing fee. Every contract, every negotiation, every inspection response — handled by an experienced broker.
Related Guides
- How to Sell Your House Without a Realtor in Houston
- How to Price Your Home for Sale by Owner
- How to Market Your FSBO Home in Houston
- How to Show Your Home as a FSBO Seller
- FSBO Contract to Close Guide
- FSBO vs Realtor: Is Selling Without an Agent Worth It?
- How to List on MLS Without a Realtor
- Option Period in Texas Real Estate
- Earnest Money vs Option Fee in Texas
- Third Party Financing Addendum Explained
- Discount Realtor Houston
Frequently Asked Questions
What should I look for first when I get an offer on my FSBO home?
Start by verifying the basics: correct legal description, party names, earnest money amount, financing details, option period terms, and closing date. Then check that the math works — earnest money plus down payment plus financed amount should equal the sale price.
Should I hire a real estate attorney as a FSBO seller in Texas?
It's worth considering. TREC's own forms carry a warning that they're intended for use by trained licensees. A real estate attorney will review contracts, advise on negotiations, and flag problems you might miss. Expect to pay $500-$1,500 for the transaction.
How do I respond to a lowball offer on my FSBO home?
Never reject outright. Counter at a price you can live with, or counter on terms instead of price. Even a small counter signals you're willing to negotiate. A flat rejection ends the conversation permanently.
What's a reasonable repair credit after a home inspection in Houston?
It depends on the home's age and condition, but most resale homes in Houston have $3,000-$5,000 in legitimate inspection items. When a buyer asks for $8,000, the real number is usually closer to $3,000-$4,000 once you remove cosmetic and maintenance items.
Can I negotiate the option period and option fee as a FSBO seller?
Absolutely. The option period length and fee amount are fully negotiable. A shorter option period means less time in limbo. A higher option fee means the buyer has more at stake if they walk away.
