Comparing an offer price with its conditions and expected proceeds
Evaluate Illinois real estate offers by reconciling purchase price, contract contingencies, mandatory disclosures, and net proceeds for a clear decision.
The short answer
Comparing offers requires looking beyond the face price to assess the net proceeds and risk. Evaluate how contingencies, such as inspections or financing, impact the likelihood of closing. Factor in your mandatory Illinois Residential Real Property Disclosure requirements and any potential for repair negotiations, ensuring you understand the real-time financial impact of buyer demands before accepting a final offer.
Analyzing the Net Sale Price
Start by subtracting anticipated costs from the offer price. Consider listing fees: the SQFT IO Silver plan at 1%, Gold at 1.99%, or Platinum at 2.49%, each with a $495 transaction fee. Remember that buyer-agent fees are negotiated separately and affect your total takeaway.
Illustrative Example: An offer of $300,000 minus a 1% listing fee ($3,000), a $495 transaction fee, and an assumed 2% buyer agent incentive provides a baseline for net proceeds.
Factoring Disclosure Risks
Illinois law requires you to disclose material defects known to you. While you are not required to perform investigations to complete the form, failing to disclose known issues can lead to liability for damages and attorney fees. An offer price might seem high, but if the buyer discovers a previously undisclosed material defect, they may terminate the contract within five business days.
Assessing Contract Conditions
Offers often include contingencies regarding lead-based paint or radon. Under federal rules, pre-1978 homes require lead disclosures, and buyers are entitled to a 10-day inspection period. If a buyer includes these as conditions for their offer price, your net proceeds are effectively contingent on the outcomes of these specialized assessments.
Evaluating Potential Tax Implications
Review your gain versus the IRS exclusion limits. If you have owned and lived in the property for at least 24 of the last 60 months, you may exclude up to $250,000 (single) or $500,000 (married filing jointly) of gain. Ensure the offer price aligns with your tax strategy, especially if you face potential depreciation recapture.
Checklist
- Calculate net proceeds after listing and buyer-agent fees.
- Complete the mandatory Illinois Residential Real Property Disclosure.
- Confirm if the property requires lead-based paint disclosures.
- Check if you meet the 24-month ownership and residence tests.
- Review offer contingencies for impact on closing timelines.
Common questions
Can I cancel a contract if I discover a disclosure error?
If you become aware of an error after delivering your report, you must provide a written supplemental disclosure before closing. Buyers have termination rights only if the defect was known at the time of the original disclosure or is considered irreparable.
Does an 'as is' clause override my disclosure duties?
No. While you and the buyer may contract for property in 'as is' condition, the Illinois Residential Real Property Disclosure Act still requires you to disclose material defects of which you have actual knowledge.
Sources
- Illinois Residential Real Property Disclosure ActChecked October 12, 2026
- IEMA-OHS — Real estate radon guidanceChecked October 12, 2026
- IRS Publication 523 — Selling Your HomeChecked October 12, 2026
- EPA — Real estate lead-hazard disclosuresChecked October 12, 2026
- SQFT IO — Listing plans and termsChecked October 12, 2026
This guide is general educational content from SQFT IO, prepared with AI assistance. It is not legal, tax or loan advice. Talk with a licensed attorney, tax professional or lender about your situation. SQFT IO Illinois license 478.027617.