Get Your Home Value →
Seller Library · Guide 04

Price is one line.
Everything else
decides whether it closes.

How to read a real estate offer on your Southern Utah home, line by line, the way a listing agent reads one. Earnest money, financing, contingencies, dates, concessions, and the parts of the REPC where deals quietly die.

Get Your Home Value Read an Offer Now
14
Key REPC fields that move your net
5
Deadlines that decide who controls the deal
3
Ways to respond to any offer
$0
Cost to read this before you sign
No gate.

Based on the Utah REPC, the standard contract used in Iron County and Washington County transactions.

Why this guide exists

The highest offer is not always the winning offer.

When the first offer hits your inbox, the natural instinct is to scan for one number. The price. I get it. That is the number you have been waiting on since the day you decided to list.

The price is also the number least likely to determine whether you actually close. In twenty-plus years of writing listing agreements in Cedar City and St. George, I have watched more deals fall apart over earnest money, financing type, and deadline math than over price. I have also watched sellers leave thousands on the table by accepting a higher headline price attached to weaker terms, when a lower offer with cash and a clean contingency window would have netted more after risk-adjusted closing probability.

This guide walks the Utah Real Estate Purchase Contract, the REPC, from the first page to the last. Every section that matters to your net, your timeline, and your peace of mind. No legal advice, just the way a listing agent reads what you are about to sign.

Section 01

The anatomy of an offer.

In Utah, almost every residential offer comes on the same form, the REPC published by the Utah Division of Real Estate and the Utah Association of REALTORS. The buyer's agent fills in the blanks, the buyer signs, and that document, plus any addenda, becomes the offer. Here are the fields that move your money.

Utah REPC · The Fields That Matter
Section 1
Purchase Price

The total purchase price. Reads big, but never read it alone. It moves with every other line below.

Section 1.2
Earnest Money Deposit

The amount of skin the buyer has in the game. Dollar amount, plus the deadline by which it lands in escrow.

Section 2
Financing Method

Cash, conventional, FHA, VA, USDA, or a combination. This is the single biggest predictor of whether the deal closes on time.

Section 2.4
Seller-Paid Concessions

A credit toward the buyer's closing costs or rate buydown. Reduces your net dollar for dollar. Read it in dollars, not percent.

Section 6
Settlement and Closing

The proposed close date and how long you have to move out after closing.

Section 8
Seller Disclosure Deadline

When you must deliver your seller property condition disclosure.

Section 8
Due Diligence Deadline

The buyer's inspection window. The day the buyer must either approve the property condition or walk and keep their earnest money.

Section 8
Financing and Appraisal Deadline

The day the buyer must remove the financing and appraisal contingency or walk with earnest money returned.

Section 8.4
Loan Denial Deadline

The latest the buyer can cancel for a denied loan and still recover earnest money. After this date, the money is yours if the loan dies.

REPC Body
Included Items

Appliances, fixtures, window coverings, swing sets, hot tubs. Anything the buyer wants to claim should be listed here, not assumed.

Addendum
Sale-of-Buyer's-Home Contingency

A separate addendum making the offer conditional on the buyer selling their current home. Read carefully. This is one of the highest-risk terms a seller can accept.

Section 24
Offer Reference Date / Acceptance Deadline

When the offer was written, and the latest moment you can accept it before it expires on its own.

Section 25
Buyer Signatures

Always confirm every buyer on title-to-be has actually signed. Missing a signature voids enforceability.

Attached
Pre-Approval Letter or Proof of Funds

The single most important piece of paper outside the contract itself. Quality of lender, depth of underwriting, and how recent the letter is all matter.

Section 02

Price (and why it lies).

Price is the headline. It is also the most movable number on the contract, and the one most often used to disguise weak terms. Read it last.

A 750,000 offer with seller-paid concessions of 15,000, an FHA loan, a 14-day due diligence period, and a 35-day close is not a 750,000 offer. It is a 735,000 net offer, with a thinner appraisal margin, a more conservative inspection response window, and a higher chance of needing a price reduction if the appraisal does not hit. By contrast, a 730,000 cash offer with a 7-day inspection window and a 21-day close is a 730,000 net offer with almost no risk of falling out. The cash buyer wins more often than the price sheet suggests.

The Net Sheet Rule

Before you respond to any offer, run a complete net sheet. Sale price minus mortgage payoff, brokerage fee, title and escrow, prorated taxes and HOA, agreed concessions, and home warranty if you offered one. That bottom-line dollar figure is the only number worth comparing across competing offers.

Run a Seller Net Sheet
Section 03

Financing type, ranked.

Every offer except all-cash carries financing risk. The type of loan tells you how much. Here is how I rank the common financing methods in a Southern Utah transaction, strongest to weakest probability of closing on the contract terms.

1

All cash with proof of funds

Strongest

No appraisal needed, no underwriter, no rate lock. Verify proof of funds is a current bank statement or brokerage statement, not a screenshot or a letter from a third party. Cash closes in 10 to 14 days.

2

Conventional, 20 percent or more down, underwritten approval

A conventional loan with strong down payment, full underwriter review, and a credit and income approval is nearly as strong as cash. The appraisal is the main remaining risk. Ask if the pre-approval was issued after a full underwriting review or only a basic system check.

3

Conventional, low down payment (3 to 10 percent)

Still a strong loan product, but the buyer is leaning more on PMI, debt-to-income ratios, and the appraisal. Common with first-time buyers in Cedar City. Closing usually runs 30 to 35 days.

4

FHA

A government-insured loan with more rigid property condition requirements. Peeling exterior paint, missing handrails, exposed wiring, and certain roof conditions can all hold up an FHA appraisal. Common, fundable, but the property has to pass FHA's inspection criteria, not just the standard appraisal.

5

VA

A strong loan for the buyer, but appraisals run conservative and minimum property requirements are strict. Common in St. George and Washington given the veteran population. Often comes with the buyer asking the seller to pay certain VA non-allowable fees. Negotiable but worth reading carefully.

6

USDA, UHC down payment assistance, and stacked DPA programs

Excellent programs for buyers, but more layers means more chances for something to derail. UHC's first-home program is common in Cedar City and St. George. Worth accepting in many cases, but factor in extra closing time and ask how many DPA closings the lender has personally done.

!
Pre-approval letter quality

A pre-approval is only as strong as the work behind it. A "fully underwritten" approval, sometimes called TBD or upfront underwriting, means the lender has already reviewed the buyer's income, assets, and credit. The only remaining question is the property. A basic pre-qual is a 10-minute online process and means almost nothing. If the offer is close, call the loan officer. A two-minute phone call tells you more than the letter does.

Section 04

Earnest money is the buyer's commitment, in dollars.

Earnest money sits in escrow with the title company or brokerage trust account. It is the buyer's promise that they are serious. If the buyer cancels for a reason allowed by the contract before the relevant deadline, they get it back. If they cancel outside those allowed reasons, or default after deadlines have passed, that money becomes liquidated damages and goes to you.

In Southern Utah, typical earnest money runs:

Under $500k
1-2%
Cedar City and entry-level St. George
$500k - $1m
2-3%
Mid-market Washington County
$1m+
3-5%
Ivins, Kayenta, premium St. George

The dollar amount matters, but what matters more is what triggers it to become non-refundable. Two scenarios to watch:

Scenario A: Earnest money goes hard at due diligence approval

After the buyer signs off on the inspection, their money is at risk. Strongest position for a seller.

Scenario B: Earnest money stays refundable through financing

The buyer can cancel for a loan denial up to the financing deadline and recover earnest money. This is the standard REPC default and most common. Acceptable, but be aware of when their money actually becomes yours.

Section 05

Contingencies are exit doors.

Every contingency in an offer is a door the buyer can walk through and recover their earnest money. The more doors, the more risk to your timeline. The Utah REPC includes four primary contingencies, and a fifth is sometimes added as an addendum.

1

Due diligence (inspection)

The buyer's window to inspect the home, pool, septic, roof, HVAC, and anything else they want a professional to look at. Inside this window they can renegotiate, request repairs, or walk and recover earnest money for almost any reason.

Seller-friendly target

Seven to ten days, ideally seven on a clean, well-priced home.

2

Financing

The buyer's ability to actually fund the loan. Tied to the Loan Denial Deadline on the REPC. After this date passes without a denial letter, the financing contingency is essentially removed.

Seller-friendly target

Twenty-one to twenty-five days from offer acceptance. Shorter than the close date but long enough that a competent lender can hit it.

3

Appraisal

The lender's third-party valuation. If it comes in low, the buyer can ask you to reduce, split the difference, bring cash, or walk. The Utah REPC ties appraisal to the same deadline as financing in the standard form.

Worth asking about

An appraisal gap addendum, where the buyer commits to bringing cash up to a stated dollar amount if the appraisal is low. Common on competitive offers in St. George.

4

Title

The buyer's review of the preliminary title report and any exceptions, easements, CC&Rs, or unresolved liens. Usually a non-issue if your title is clean. Tied to the seller disclosure deadline on the REPC.

5

Sale of buyer's current home (addendum)

A separate addendum making the buyer's offer conditional on selling their current home first. Typically paired with a kick-out clause that lets you continue marketing and accept a better offer with a short notice period.

Read this one twice

High risk to your timeline. Sometimes the right call, especially in a slower market or when the buyer's home is already under contract. If their home is only listed, not yet under contract, the risk is meaningfully higher. Read the kick-out clause carefully. Anything longer than 72 hours notice ties your hands too long.

Section 06

Deadlines decide who controls the deal.

Every deadline on the REPC is a pressure point. Whoever holds the next deadline holds the negotiation. Here is the typical sequence on a 30-day Southern Utah close, financed.

Day 0
Offer accepted, fully executed

The clock starts the moment all parties have signed and notice of acceptance has been delivered.

Day 3
Earnest money delivered

Buyer wires earnest money to escrow within four business days, per REPC default.

Day 7
Seller disclosure delivered, title commitment ordered

You deliver your property condition disclosure. The title company opens file.

Day 10-14
Due diligence deadline

Buyer approves the inspection, requests repairs, renegotiates, or cancels. Highest-risk deadline of the transaction.

Day 21-25
Financing and appraisal deadline

Buyer's lender confirms the loan is clear-to-close. Appraisal hit (or didn't). Second-highest-risk deadline.

Day 28
Final walk-through

Buyer confirms the property is in agreed condition.

Day 30
Settlement and closing

Documents signed, funds wired, deed recorded with Iron County or Washington County. Possession transfers per the REPC.

A 30-day close is the comfortable default. Strong offers shorten to 21 days. FHA, VA, and DPA loans usually need 35 to 45.

Section 07

Concessions, the silent net-killer.

A seller concession is a credit you give the buyer at closing, typically toward their closing costs or a rate buydown. It comes straight off your net at settlement, dollar for dollar.

Concessions are not inherently bad. They expand your buyer pool. A 7,500 concession toward closing costs may be exactly what makes a strong FHA or VA buyer's offer work in St. George. A 2-1 rate buydown often gets a first-time buyer over the affordability line in Cedar City. The question is never "should I offer concessions," it is "what does my net look like after this concession compared to the offer behind it?"

Quick example
Offer A
$520,000

Cash, no concessions, 14-day close.

Estimated net
$520,000
Offer B
$535,000

FHA, 10,000 seller concession, 35-day close.

Estimated net
$525,000

Offer B nets 5,000 more on paper. Offer A closes in two weeks with zero contingency risk. Often Offer A wins. Sometimes Offer B does. The point is, the net sheet decides, not the headline.

Section 08

A scoring framework for multiple offers.

When more than one offer hits the table, score them on five dimensions, not one. Headline price gets you only the first dimension. The other four predict whether you ever see that price arrive in your account.

01

Net to seller

Price minus concessions, minus warranty, minus anything you agreed to credit. Use the net sheet.

02

Probability of closing

Loan type, pre-approval depth, lender reputation, buyer's earnest money commitment, and any sale-of-home contingencies.

03

Timeline fit

Does the close date and possession schedule match your move? An offer 8,000 higher but 30 days early can cost you more in temporary housing than it pays.

04

Contingency window

Inspection days, financing days, and any addenda. Shorter windows favor you. Longer windows mean more days at risk.

05

Buyer profile and motivation

Is this a primary residence buyer, a second-home buyer, or an investor? Are they relocating with a hard deadline? A motivated buyer with a known relocation date tends to close cleanly. A speculator scoping a flip is more likely to renegotiate hard at inspection.

Section 09

Six red flags I look for before I respond.

!

Generic pre-qual letter

Letter dated more than 60 days ago, missing the buyer's name, or signed by a national call center. Means the lender has done minimal underwriting. Higher chance of a late-stage decline.

!

Long due diligence window

Anything over 14 days on a typical resale home is a stretch. Sometimes justified (septic, well, large acreage). Often a sign of a buyer hedging their commitment.

!

Underwater earnest money

An earnest money deposit far below market norms for the price band. Signals weak commitment, low cash position, or both.

!

Concessions above 3 percent

FHA caps seller concessions at 6 percent, conventional at 3 to 9 percent depending on down payment, VA at 4 percent of the sales price. Anything stacked near the cap usually means the buyer is stretching.

!

Long inclusions list

Riding mower, hot tub, deep freezer, garage shelves, patio furniture. Each item is fine on its own. A long list signals a buyer trying to pad value beyond the price.

!

Sale of home addendum with a home only listed

A buyer whose current home is under contract is materially different from a buyer whose home is only listed. The latter creates a chain you cannot control. Use a kick-out clause if you accept.

Section 10

Your three responses to any offer.

Once you have read the offer, run the net sheet, and scored it against the framework above, you have exactly three responses available. There is no fourth.

01

Accept

Sign and deliver. The offer becomes a binding contract the moment all parties have signed and notice of acceptance has been delivered to the offering party. Time is of the essence under the REPC.

Best move when net, terms, and timeline all line up and the buyer is strong.

02

Counter

Issue a counteroffer addendum changing one or more terms. Price, earnest money, deadlines, concessions, inclusions, or close date. The buyer can accept, counter back, or walk. The offer is no longer alive on its original terms once you counter.

Most common response. Worth knowing every counter is a new offer, and the buyer can walk freely after you counter.

03

Reject (or let it expire)

Decline in writing or simply let the offer's acceptance deadline pass. The offer dies. Use this when the gap is too wide to negotiate or when a stronger offer is pending.

Rarely the right move on its own. Usually paired with a private signal that a counter would have a better chance at a different number.

Section 11

Seller FAQ.

What is the most important line on a real estate offer?

Net to seller, not gross price. The headline price is the easiest number to fixate on, but earnest money, financing type, concessions, contingency removal dates, and closing costs all move your final net. A lower-priced offer with cash and no contingencies often nets more than a higher-priced offer with a low-down loan, a long inspection window, and seller-paid concessions.

Should I always take the highest offer on my Utah home?

No. The highest offer is the highest only if it actually closes. Cash with proof of funds beats high price with weak financing. A VA or FHA buyer with shaky underwriting at the top of your price band can fall out 30 days in, after you have turned away cleaner offers. Always score offers on probability of closing, not just headline price.

How much earnest money should I expect in Southern Utah?

On a typical Southern Utah single-family transaction, earnest money usually lands between 1 percent and 3 percent of the offer price. On homes above 700,000 it often climbs to 3 to 5 percent. The dollar amount matters less than what triggers it to become non-refundable. Read the REPC deadlines, that is where the bargaining power sits.

What is a financing contingency and how risky is it?

A financing contingency lets a buyer walk away and keep their earnest money if their loan is denied by the Loan Denial Deadline on the REPC. The risk to a seller is twofold: time off market while the loan processes, and the chance the loan fails late. Pre-approval quality is your defense. A full credit and income review by an underwriter is far stronger than a basic online pre-qual.

What are seller concessions and should I agree to them?

Seller concessions are a credit you give the buyer at closing, usually to offset their closing costs or rate buydown. They reduce your net dollar for dollar. Agreeing to them can be smart if it gets you the buyer pool you want, especially first-time buyers in Cedar City near SUU or VA buyers in St. George. The trap is agreeing to a number that pushes your appraisal contingency into a corner. Always model it on the net sheet before agreeing.

What happens if the buyer's appraisal comes in low?

On a financed offer, the buyer's lender will only lend against the appraised value, not the contract price. If the appraisal comes in low, three paths exist: the buyer brings the difference in cash, the seller reduces price to the appraisal, or the parties split the gap. Without a low-appraisal addendum, the buyer can typically walk and recover earnest money under the financing contingency.

This guide is for educational purposes. It is not legal advice. The REPC is a legally binding contract and changes from year to year. Talk through your specific offer with your listing agent and, where appropriate, a Utah real estate attorney.

Before you respond to an offer

Know what your home is actually worth first.

A pricing band built from current Iron County or Washington County comps tells you whether the offer in front of you is at market, under, or stretched. Without that anchor, every counteroffer is a guess. Five minutes, no signup wall, no listing meeting unless you ask.

Get my pricing band
Keep reading

The rest of the seller library.

Hub Index

Seller Resources hub

All eleven guides in one place. Pricing, prep, offers, timelines, and special situations.
Guide 01

How to price your home

CMAs, market conditions, overpricing risk, and what online estimates miss in Southern Utah.
Guide 03

Listing to close: the timeline

The full process walkthrough from listing agreement to recorded deed.
Guide 05 Coordinator

Selling and buying at the same time

Bridge timing, contingencies, lease-back, and the dual-license coordinator model.
Calculator

Seller Net Sheet calculator

Model an actual offer down to the dollar before you sign. The fastest way to compare offers head-to-head.
Guide 08

Seller FAQ

The questions sellers actually ask me, answered plainly. Fees, timelines, marketing, and Utah disclosure rules.
Whenever you are ready

Read the offer.
Then run the number.

Every offer reads differently when you know what your home is actually worth. The valuation is one form. Phone and Calendly work too, whichever is easier.

Get my home value (435) 357-4345 Book a call