Understanding Term Value and Total Offer Value
Term Value helps create a level playing field for comparing offers by quantifying what the seller cares about most. Some Seller’s Terms may include values—positive or negative—that reflect how desirable (or undesirable) each term is to the seller. This is an optional feature for the seller and the listing agent to assign values to terms, if desired.
How Term Value Works
When a buyer accepts a term that has a value attached, that value is applied to their Offer Price.
Total Offer Value = Offer Price + the sum of all accepted term values
Purchase Price remains the actual amount the buyer is offering to pay the seller.
Total Offer Value is used solely for comparing one buyer’s offer against another based on the seller’s priorities.
Why Some Terms Have Values
Certain listings may display positive or negative values next to specific seller terms. These indicate how selecting or declining each term will impact your Total Offer Value.
These values:
Are optional
Are set by the seller and their agent
Help buyers understand how their choices affect their competitiveness
Common Examples
Sellers often assign values to terms such as:
Mortgage Contingency
Financing Contingency
Example:
A negative value may be applied if the buyer requires a mortgage contingency (making the offer less competitive).
A positive value may be offered if the buyer waives the mortgage contingency (making the offer more attractive to the seller).
In the example below, the seller has set a positive value to buyer's who waive Mortgage and Inspection contingencies. The buyer's are not forced to waive these contingencies but they'll gain some offer value if they do.