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 as soon as possible. But most agents ask the seller to wait until he/she can arrive and review the offer. Donít be worried that the price is automatically going to be lower than you hoped. You can ALWAYS make a counter offer. Donít just run 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 review 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 choice to counter with a higher number.
The buyer who is less than perfect may ask for quite a bit 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 demand 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. Consider before you reject any offer.
You can turn any offer into a good solid proposal for everyone if you do a little reasoning. You do not have to accept or reject an offer as soon as it is presented to you. The agent will allow 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 submit 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 terms. This is all part of making a deal in real estate.
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