| Course | MT361 Foundations of Real Estate Practice |
|---|---|
| Unit | Unit 8 |
| Paper type | Purchase offer analysis |
| Length | About 1,140 words, 7 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for MT361 Unit 8
Proceeds, Not Price: An MT361 Unit 8 Purchase Offer Analysis of Two Offers on a 1962 Ranch
[Student Name]
Purdue University Global
MT361: Foundations of Real Estate Practice
Unit 8 Purchase Offer Analysis
[Instructor Name]
[Date]
The offers, figures and the state of Calder are composite; this is an analysis of a course file, not advice to any seller. The federal rules and sources cited are real.
The Two Offers
Offer A is $306,000 with FHA financing and 3.5 percent down. It asks the sellers to pay $9,000 of the buyers' closing costs and to pay the buyers' broker 2.5 percent of the price. It includes a ten-day inspection period, a ten-day lead-based paint inspection window, a thirty-day financing contingency and a forty-five-day closing.
Offer B is $299,000 with conventional financing and 20 percent down. It asks for no concessions and no payment to the buyers' broker. It includes a seven-day inspection period, a twenty-one-day financing contingency, appraisal-gap coverage of up to $6,000 and a thirty-day closing.
Proceeds, Line by Line
Sellers ask about money first, so the analysis answers that question before any other. Each price is reduced by the same items the sellers will pay at closing: the 2.5 percent listing fee, Calder's transfer tax of 1 percent, $1,450 in settlement charges and the $88,400 mortgage payoff, plus any concessions or buyer-broker payment the offer requests.
Offer A: $306,000, less $9,000 in concessions, $7,650 for the buyers' broker, $7,650 for the listing fee, $3,060 in transfer tax, $1,450 in settlement charges and the $88,400 payoff, leaves $188,790.
Offer B: $299,000, less $7,475 for the listing fee, $2,990 in transfer tax, $1,450 in settlement charges and the $88,400 payoff, leaves $198,685.
Offer A's $7,000 lead in price becomes a $9,895 deficit in proceeds once its $16,650 in requested payments is counted. The seller's closing statement, not the contract price, shows what a sale actually yields (Ling & Archer, 2021), and this file shows why the two can point in opposite directions.
The higher price nets less, because the offer asks the sellers to pay $16,650 of the buyers' costs.
Every Contingency, Dated
Time is the sellers' second question. Both offers are dated from a Monday acceptance on April 13, 2026, counting calendar days as the contract specifies.
Offer B: inspection ends Monday, April 20; the financing contingency ends Monday, May 4; closing falls on Wednesday, May 13.
Offer A: inspection and the lead-based paint window end Thursday, April 23; the financing contingency ends Wednesday, May 13; closing falls on Thursday, May 28.
Calder also allows a period for attorney review of the contract, here assumed at three business days, which would run from April 13 to April 16 for either offer. Because that is a Calder rule rather than a contract term, it counts business days and is noted separately.
Risk, Contingency by Contingency
Risk is the third question, and the analysis takes it one contingency at a time, asking who can exit, until when, and whether the earnest money is at stake.
Inspection. Offer A's buyers can withdraw for any inspection finding, including the results of a lead-based paint inspection, until April 23 (Lead-based paint poisoning prevention in certain residential structures, 2024); Offer B's until April 20. Both can recover their earnest money in that window. Offer B ends this risk three days sooner.
Financing. Offer A's buyers can withdraw without penalty if their loan is not approved by May 13, which is the original closing date for Offer B. Offer B's buyers, with 20 percent down, are less likely to be declined and must waive the contingency nine days earlier.
Appraisal. Offer B's buyers will cover a shortfall of up to $6,000, so an appraisal as low as $293,000 leaves the $299,000 price intact. That floor sits just above the $292,740 value indicated by the Unit 4 market analysis, which is why the coverage matters: an appraisal at that value would leave a gap of only $260 for the parties to resolve. Offer A has no gap coverage.
The FHA Appraisal on a 1962 House
Offer A's financing adds a risk the price does not show. On FHA-insured loans, the appraiser checks the property against minimum standards, and for housing built before 1978, defective paint must be corrected before the loan can close (U.S. Department of Housing and Urban Development, 2024). The Harlows' detached garage has peeling trim, which the appraiser will likely flag as a required repair. That adds a contractor using lead-safe practices, a reinspection and several days to Offer A's calendar. FHA loans also carry an amendatory clause allowing the buyers to leave the contract without losing their earnest money if the appraised value falls below the price, so if the appraisal came in at $292,740, Offer A's buyers could walk away or ask for a reduction of more than $13,000.
Earnest Money and What It Signals
Offer A carries $3,000 in earnest money; Offer B carries $10,000. Earnest money is not the sellers' to keep while contingencies remain open, since buyers who withdraw within a contingency recover it. Its value lies in what it signals and in what it protects after the contingencies end. A buyer who has deposited $10,000 and waived financing protection on May 4 has a strong reason to close on May 13. A buyer with $3,000 at stake and a financing window open until the original closing date has less reason and more ways out.
The Counteroffer Option
The sellers could also counter Offer A rather than reject it, asking its buyers to drop the concessions and the broker payment. The analysis does not recommend leading with that, because a counter keeps both offers in suspense and risks losing Offer B, whose buyers have no reason to wait. Inviting Offer A to stand as a backup achieves most of the same protection without delaying the stronger offer.
What Would Reverse the Recommendation
If Offer A's buyers dropped both their concessions request and the buyers' broker payment, the sellers' proceeds from Offer A would rise to $197,790, still about $900 below Offer B, with the FHA repair and the longer calendar still attached. The recommendation would therefore change only if Offer A's buyers also raised their price, or if Offer B's lender showed signs of trouble before acceptance. It would also change if the sellers needed the later closing date for their own move.
Recommendation
Accept Offer B and invite Offer A's buyers to stand as a backup offer on Calder's backup addendum, so that if Offer B fails during its contingencies, Offer A moves into first position without the house returning to market. This is an analysis of a composite course file, not advice to any real seller, and the sellers' attorney should review the backup addendum before it is signed.
References
Lead-based paint poisoning prevention in certain residential structures, 24 C.F.R. pt. 35 (2024).
Ling, D. C., & Archer, W. R. (2021). Real estate principles: A value approach (6th ed.). McGraw Hill.
U.S. Department of Housing and Urban Development. (2024). FHA single family housing policy handbook 4000.1. U.S. Department of Housing and Urban Development.
What the MT361 Unit 8 assignment asks for
Unit 8 asks students to compare competing offers and recommend a response. The analysis should convert each offer into the seller's net proceeds, date every contingency and assess the risk each one carries. Instructors expect the net sheet to include every cost the seller pays, including concessions and any buyer-broker payment the offer requests. Deadlines should be counted by the contract's rule, with state-specific steps labeled. Financing type matters, and students should explain how FHA, VA or conventional loans change the risk, especially for older houses. Earnest money and backup offers are common topics. The recommendation should state what would change it and avoid presenting itself as advice to a real seller.
How the MT 361 Unit 8 example is put together
Both offers are summarized first. The net sheet follows line by line for each, showing how the higher price becomes the lower proceeds, under a highlighted line about the requested payments. Contingencies are dated from acceptance, and the state's attorney-review step is labeled as counting business days. Risk is taken one contingency at a time, including the appraisal gap and its relation to the Unit 4 value. The FHA section explains the defective-paint requirement and the amendatory clause. Earnest money is compared as a signal, and a counteroffer is weighed and set aside. A section on what would reverse the recommendation recomputes Offer A without its requests before the backup-offer recommendation closes it.
Where the points sit in the MT361 Unit 8 rubric
Offer analyses are often graded on the accuracy of the net sheet, the correctness of the dates, the quality of the risk assessment and the soundness of the recommendation. Every figure in the net sheet should be traceable. Rubrics reward analyses that order the discussion as sellers ask, money, then time, then risk. Correct day counts, with different clocks labeled, show care. Explaining how loan type affects an older property demonstrates practical knowledge. Treating earnest money as a signal, rather than as money the seller can keep, shows accuracy. Stating the facts that would flip the choice, and keeping a backup buyer in reserve, shows judgment. HUD's handbook, the lead rule and the textbook are referenced in APA 7.
MT361 Unit 8 help from the desk
Many offer analyses compare prices and stop, missing that concessions and broker payments can reverse the ranking. Others list contingencies without dates or count them inconsistently. FHA financing is often described as simply a smaller down payment, without the property condition rules that matter for older houses. Students sometimes treat earnest money as the seller's to keep if a buyer withdraws during a contingency. Recommendations rarely say what would change them. Before writing, build the net sheet for each offer and put the two proceeds figures side by side. Then list every date on which either buyer could still walk away, and let those two lists organize the paper.
Get an MT361 Unit 8 example written to your instructions
Lay out the offers in your Unit 8 scenario along with the seller's costs and loan payoff, then add the prompt and rubric. In 24-48h a free first custom analysis nets each offer to the dollar, dates every contingency from acceptance and weighs who can walk away, and when. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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MT361 Unit 8 questions, answered
Why does an FHA offer carry extra risk for an older house?
FHA appraisals check property condition as well as value, and for homes built before 1978 defective paint must be corrected before the loan closes. The FHA amendatory clause also lets the buyer withdraw without losing earnest money if the appraisal comes in below the price. Neither makes an FHA offer weak, but both belong in the risk analysis.
Can a buyer's offer ask the seller to pay the buyer's broker?
Yes. Since August 17, 2024, the MLS no longer carries compensation offers, but buyers may still ask the seller to pay some or all of their broker's fee as a term of the offer, and sellers may agree, counter or decline. The analysis should treat that request as a cost to the seller, like a concession.
Where can I find a free MT361 Unit 8 sample paper?
The complete MT361 Unit 8 purchase offer analysis is on this page, netting two offers on a 1962 ranch and dating every contingency.
How should contingency deadlines be counted in an offer analysis?
Use the counting rule in the contract, usually calendar days from acceptance, and label any state step, such as attorney review, that counts business days instead. Give each deadline as a date so the sellers can see when each buyer's right to withdraw ends.
Why does the $299,000 offer net more than the $306,000 offer in the MT361 Unit 8 sample?
The higher offer asks the sellers to pay $9,000 of the buyers' costs and $7,650 to the buyers' broker, which turns a $7,000 price lead into a $9,895 shortfall.