Real Estate --- The Purchase Offer and Counteroffer
So your very first offer has been made and your agent calls you
right away. You want to fine out how much the offer was for
immediately. But most agents ask the seller to wait until he/she can
arrive and discuss the offer. Donít be concerned that the price is
automatically going to be lower than you hoped. You can ALWAYS make
a counter offer. Donít just walk away from the offer altogether.
Any offer on a home is a good sign. This means someone wants your
property. You do not have to accept it of course. This is what
countering an offer is all about. This is where you get the chance
to have your say in the matter. You may not agree with the terms of
the offer but check it over carefully.
There are many good offers which get rejected because the homeowner
is not happy with the price the buyer offered. However, if the only
thing they are asking for is a reduction in price deem yourself
lucky. You have the option to counter with a higher number.
The buyer who is less than perfect may ask for a lot more than just
a reduced price. They can ask you to pay points or closing costs.
Depending on what the lender charges per point, this can become just
as bad as a low offer. Most lenders charge 1% per point. On a
$100,000 home this can be as much as $4,000. This means the buyer is
actually offering to pay $96,000 for the house. If you already
turned down an offer of $97,000 you are actually accepting less with
the second offer. Especially if the buyer has also asked you to pay
the closing costs.
By countering an offer instead of just flat out rejecting it, you
can many times negotiate a deal which can be very profitable to you.
The buyer may be in total agreement with the counter offer. This
will make everyone happy in the deal. Reflect before you reject any
You can turn any offer into a good solid proposal for everyone if
you do a little thinking. You do not have to accept or reject an
offer as soon as it is presented to you. The agent will give you a
few days to think about it before settling on what you want to do.
When you have made up your mind the agent will then put forward your
counter offer to the buyer. The buyer then has the chance to either
reject the deal or accept it.
The countering can go on for quite some time if you have a very
interested buyer and a motivated seller. It is necessary to make
sure the last contract which is signed has everything both parties
want listed in the paperwork. There can be addendums, contingencies,
and many other conditions. This is all part of making a deal in real
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