Pre-Contract Checklist
Everything to confirm before writing a single word
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Confirm buyer is pre-approved and letter matches offer price
Never submit a contract without a current pre-approval. Call the lender directly. The letter should reflect the offer amount, not the max approval.
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Run a fresh CMA on the target property
Pull comps sold in the last 60–90 days, same subdivision or 1-mile radius, similar beds/baths/sqft. Know market value before advising on offer price.
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Research days on market, price history, and seller motivation
HAR MLS shows full price history. Has it been reduced? Is it a relocation, estate, or divorce? DOM directly impacts negotiating leverage.
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Verify property details: legal description, tax ID, HOA status
Pull from MCAD or HCAD. Confirm the exact legal description for the contract. Check if an HOA addendum (TREC 36-9) is required.
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Check flood zone designation (FEMA)
Critical in Houston/Montgomery County. Look up FEMA flood map for the property. Flood zone impacts insurance cost significantly — buyers must know before writing.
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Call the listing agent before submitting
Ask: "Is the seller reviewing offers as they come in or waiting for a deadline?" and "Are there other offers or interest?" This intel shapes your entire strategy.
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Determine earnest money amount and option period
Standard: 1% earnest to title, 7–10 day option, $200–$500 option fee to seller. Higher earnest + shorter option = stronger offer in competitive situations.
⚡ Pro Tip
Always call the listing agent before or right as you submit. Agents remember agents who communicate proactively. This call alone can give you an edge in a tied situation.
TREC 1-4 Field Guide
The paragraphs that trip agents up — click to expand each one
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§1 — Parties: Use exact legal names
Use names exactly as they appear on the deed (sellers) or will appear on title (buyers). No nicknames or abbreviations. Errors here can delay closing or require an amendment.
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§2 — Property: Include full legal description, not just address
Pull the legal description from MCAD or HCAD (Lot X, Block X, Subdivision, County). Street address alone is not sufficient — errors can void the contract.
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§3 — Sales Price: Cash + financed must equal total price exactly
Break out cash portion vs. financed amount correctly. A math mismatch flags at title and requires an amendment. Double-check before submitting.
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§5 — Earnest Money: Amount, title company, and 3-day delivery
Earnest money must be delivered to title within 3 days of effective date. Failure can allow the seller to terminate. Confirm receipt and get a written acknowledgment.
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§7 — Property Condition: Check "As Is" unless negotiating repairs upfront
"As Is" does NOT mean the buyer waives inspection rights — it means they accept or terminate. All repair negotiations happen during the option period.
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§11 — Special Provisions: Facts only — no legal language
For factual statements only (e.g., "Seller to leave washer/dryer"). Never insert contingency language or repair obligations here — that requires an attorney-drafted addendum.
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§23 — Option Period: Never leave blank for buyer clients
A blank §23 means NO option period. No option = no right to terminate without losing earnest money. Always fill in the number of days AND the option fee amount.
⚡ Pro Tip
The option fee in §23 goes directly to the seller — NOT to title. Many new agents make this mistake. Deliver the option fee separately, get confirmation, and keep documentation. The earnest money goes to title.
Contract Timeline
Every critical date from executed contract to closing table
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Day 0 — Confirm effective date in writing with both parties
The effective date is when the LAST party signs. All deadlines run from this date. Confirm via email immediately after execution.
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Within 3 days — Earnest money delivered to title company
Calendar this immediately. A missed earnest money deadline can allow the seller to terminate. Get a written receipt from the title company.
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Within 3 days — Option fee delivered directly to seller
Not to title — to the seller directly. Deliver by hand, overnight, or wire. Keep your delivery confirmation. No proper delivery = no option period.
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Days 1–3 of option — Schedule inspection immediately
Book the inspector within 24–48 hours of effective date. Never schedule on the last day of option — you need 2–3 days of runway after the report.
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Option expiration — 5 PM on final day (Texas default)
Set a 3 PM alarm on option expiration day. If still negotiating, you have 2 hours to execute an amendment or deliver termination notice. After 5 PM the option is gone.
Days 7–14 — Confirm lender has ordered the appraisal
Appraisal turnaround in Houston/Montgomery County is typically 7–14 days. Low appraisals trigger renegotiation — be prepared with your strategy in advance.
⚡ Pro Tip
As soon as a contract is executed, create a timeline document with every deadline date calculated out. Share it with your client, the lender, and the title company. Agents who manage timelines proactively close on time — others don't.
Negotiation Strategy
Tactics for common scenarios from offer to close
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Seller counters above buyer's max — bridge with terms, not just price
Shorter option period, faster close, waive seller concessions, increase earnest money. Sometimes terms matter more than price to a seller.
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Low appraisal — present all three options simultaneously
(1) Seller reduces to appraised value. (2) Buyer pays the gap in cash. (3) Split the difference. Sellers often accept option 1 rather than restart with a new buyer who'll get the same appraisal.
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Inspection issues — get contractor bids, not just inspection estimates
Real bids are more defensible in negotiation. Ask for cash credit at closing rather than repairs when possible — buyers choose their own contractor and it closes faster.
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Seller won't budge on price — shift to seller concessions
Ask for 2–3% toward closing costs or a repair credit. Net result to the seller is the same but keeps the sale price higher. "We can keep your price, we just need help with costs."
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Closing extension needed — communicate early and offer a per-diem
Never ask for an extension the day before closing. Give the seller a reason and a firm new date. Offer $50–$100/day per-diem to show good faith.
⚡ Pro Tip
The best negotiators aren't the most aggressive — they're the best communicators. Stay in constant contact with the listing agent. Understanding the seller's real motivation gives you 10x more leverage than any contract clause.
Common Contract Mistakes
Errors that delay closings, kill deals, or create legal exposure
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I confirmed the effective date in writing with both parties
The #1 source of timeline confusion. Confirm via email: "The effective date is [date] — all deadlines run from this date."
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Option fee delivered to seller (not title) within 3 days
Many new agents accidentally send the option fee to title. It goes to the SELLER. Confirm delivery and keep documentation.
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Earnest money delivered to title within 3 days
Calendar this immediately when the contract executes. A missed earnest money deadline can allow the seller to terminate the contract.
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Sales price math is correct across all lines in §3
Cash + financed amount must equal total sales price exactly. A math error requires an amendment and looks unprofessional to the listing agent.
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§23 is filled in — option period is NOT blank
A blank §23 means NO option period. No option = no right to terminate without losing earnest money. Always fill this in for buyer clients.
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HOA addendum attached if property is in an HOA
If the MLS shows an HOA, the TREC HOA Addendum (36-9) is required. Missing it delays closing. Confirm with MCAD or the listing agent.
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Inspection scheduled within first 2 days of option — not the last day
Scheduling inspection on the last day leaves no time to negotiate. Always leave 2–3 days of runway after the inspection report before the option expires.
⚡ Pro Tip
Never write complex contingency language in §11 Special Provisions. If it sounds like a legal clause, it needs to be an attorney-drafted addendum. Writing legal language in §11 is practicing law without a license — and it often isn't enforceable anyway.
Contract Scripts
What to say in the most critical contract conversations
📞 Presenting the Offer to the Listing Agent
"Hey [agent name], this is [your name] with Eagle Nexus — I'm calling to let you know I'm submitting an offer on [address]. My buyers are well-qualified — pre-approved with [lender] and their letter reflects the offer price. We're coming in at [price] with [earnest money] earnest and a [X]-day option. Are there any terms that are particularly important to your sellers that I should know about?"
Always call before or right as you submit. Listing agents remember agents who communicate proactively.
💰 Presenting a Counter Offer to Your Buyer
"The seller came back with a counter at [price]. Here's my honest read: [context — market, DOM, competing interest]. You have three options: accept at [price], counter back at [lower number], or hold firm at your original offer. Based on the comps and what I know about this property, my recommendation is [recommendation]. What matters most to you here — the price, the timing, or just getting this house?"
🔧 Requesting Repairs After Inspection
"We received the inspection report and our inspector flagged a few items we'd like to address. We're not asking for cosmetic things — just items that affect the safety or functionality of the home. We'd like to ask the seller to either complete these repairs before closing or provide a [dollar amount] credit at closing. We're flexible on which route works best for them."
Lead with reasonable, defensible items. "All items on the inspection report" signals an unreasonable buyer and can backfire badly.
📉 Low Appraisal Conversation with Your Buyer
"The appraisal came in at [amount], which is [difference] below our contract price. I want to walk you through your options clearly. First, we can ask the seller to reduce the price to the appraised value. Second, you can pay the difference in cash. Third, we can meet in the middle. The seller doesn't want to start over with a new buyer who'll likely get the same appraisal, so we have more leverage here than it might feel like."
