Questions Every Homeowner Should Ask Before Accepting an Offer

When an offer lands on your kitchen table — or in your inbox — it's easy to focus on one number: the price. But a purchase offer is much more than a dollar amount. It's a bundle of terms, conditions, contingencies, and timelines that all affect whether you actually close and how much you ultimately walk away with.

This guide covers the questions you should ask before accepting any offer — whether it's from a traditional financed buyer or a cash investor.

Question #1: Is This a Cash Offer or Financed?

This is the single most important question. Cash offers close faster (as fast as 7 days), have no financing contingency, and don't require appraisals. Financed offers depend on the buyer's lender approving the loan — a process that can take 30–60 days and can fall apart for reasons entirely outside your control.

If the offer is financed, ask: Does the buyer have a pre-approval letter? Is it recent? Who is the lender? A pre-approval from a reputable lender carries more weight than one from an online-only outfit. A pre-qualification is weaker than a pre-approval — it means the lender hasn't verified the buyer's financials.

Question #2: What Contingencies Are Attached?

Contingencies are "escape clauses" that let the buyer walk away without losing their earnest money. Common contingencies include:

Cash offers from direct buyers typically have zero contingencies. That's a significant advantage — it means the sale is essentially guaranteed once you accept.

Question #3: What's the Closing Timeline?

A traditional financed sale typically takes 30–60 days from accepted offer to closing — and that's if everything goes smoothly. A cash sale can close in 7–14 days. Ask yourself: What is each additional month of waiting costing me? Mortgage payments, taxes, insurance, and utilities add up fast. Use our holding cost calculator to quantify it.

Question #4: How Much Is the Earnest Money Deposit?

Earnest money is the buyer's "good faith" deposit. A larger deposit signals a more committed buyer — they have more to lose if they walk. In Michigan, 1–3% of the purchase price is typical for traditional sales. Cash buyers may put down a larger deposit given the faster timeline. A small earnest money deposit ($500–$1,000) combined with lots of contingencies is a red flag.

Question #5: What's My Net — Really?

Don't get hypnotized by the offer price. Calculate what you'll actually pocket:

Question #6: Who Is the Buyer?

Not all buyers are created equal. Ask:

• Is this an individual buyer who will live in the home or an investor?
• If a cash buyer, can they provide proof of funds?
• What's their track record? Do they have references or reviews?
• Are they local, or an out-of-state entity you've never heard of?

Question #7: What Happens If Something Goes Wrong?

Every offer should answer: what happens to the earnest money if the deal falls through? Under what conditions can the buyer cancel without penalty? What are your remedies if the buyer breaches? A good offer is clear on these points. If the language is vague, ask for clarification before signing.

Cash Offer vs. Financed Offer: A Quick Comparison