Understanding Offers on Your Home

What a Real Estate Offer Is

A real estate offer is a formal, written contract proposal. It is not a conversation, a text message, or a verbal promise. Until an offer is accepted in writing by all parties, it has no binding effect.

In Idaho, most residential offers are written using the RE-21 Purchase and Sale Agreement. This document lays out the full framework of the transaction, including price, deadlines, inspections, financing, and closing terms.

Once signed by both buyer and seller without changes, the RE-21 becomes the binding contract for the sale.

Who Creates the Offer

The buyer creates the offer, usually with the assistance of their real estate agent. The buyer’s agent prepares the paperwork based on the buyer’s instructions and the terms the buyer wants to propose.

While the buyer’s agent helps draft the offer, it is the buyer—not the agent—who is making the proposal and committing to the terms once it is signed.

Who Presents the Offer to the Seller

Offers are presented to the seller by the seller’s listing agent. The listing agent’s role is to:

• Deliver the offer promptly
• Explain the terms, deadlines, and conditions
• Identify strengths, risks, and negotiation points
• Answer questions so the seller can make an informed decision

Even if multiple offers arrive, each offer must be presented. Sellers decide how and when to respond.

What Is Included in an Offer

While every offer is different, most Idaho offers include:

• Purchase price
• Earnest money amount and timing
• Financing type (cash, conventional, FHA, VA, etc.)
• Inspection contingencies and deadlines
• Appraisal and financing contingencies
• Requested closing date and possession terms
• Seller concessions or credits (if any)

These terms are all laid out in the RE-21 Purchase and Sale Agreement 

Seller Options After Receiving an Offer

When you receive an offer, you are never required to accept it. In Idaho, sellers generally have four options:

1) Accept the Offer as Written

If the terms meet your goals, you may accept the offer without changes. Once signed and delivered, the RE-21 becomes a binding contract and the transaction moves into the contract-to-close phase.

2) Reject the Offer

You may decline the offer outright. A rejection ends that specific proposal, although the buyer may choose to submit a new offer.

3) Counter the Offer

If you like the buyer but want different terms, you may issue a counter offer. In Idaho, this is typically done using the RE-13 Counter Offer form.

A counter offer changes one or more terms (price, deadlines, concessions, possession, etc.) and legally rejects the original offer while proposing new terms for the buyer to accept, reject, or counter again.

Counter offers are governed by the RE-13 Counter Offer form

4) Do Nothing (Let the Offer Expire)

Offers typically have expiration deadlines. If you do not respond before the deadline, the offer expires automatically. This is usually not the preferred approach, but it is an option.

Understanding Counter Offers (RE-13)

A counter offer is not a negotiation conversation—it is a legal document. Once issued:

• The original offer is no longer available for acceptance
• The buyer must accept, reject, or counter the new terms
• Deadlines reset based on the counter offer terms

This is why it’s important to understand that “countering” always carries some risk. The buyer is free to walk away if they do not agree with the revised terms.

How Sellers Evaluate Offers

Price matters, but it’s not the only factor. Sellers often consider:

• Net proceeds (not just headline price)
• Financing strength and buyer qualifications
• Contingencies and inspection risk
• Appraisal risk
• Timeline and possession needs
• Certainty versus flexibility

This is where your listing agent helps you compare offers side-by-side and understand tradeoffs.

How This Fits Into the Two70 Seller Process

1. Home is listed and marketed
2. Offers are received using the RE-21
3. Listing agent presents and explains each offer
4. Seller accepts, rejects, or counters (RE-13)
5. Once accepted, the transaction moves into contract-to-close