When you are ready to buy a home, you will need to make a written offer. As a Realtor®, I have standard purchase agreements and will help you put together a written, legally binding offer that reflects the price as well as terms and conditions that are right for you. I will guide you through the offer, counteroffer, negotiating, and closing process.
How much should you offer?
You sometimes hear the amount of your offer should be “x” percent below the seller’s asking price or “y” percent less than you are really willing to pay. In practice, a successful offer depends on the basic laws of supply and demand; if many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order. I will help you determine a suitable offering price and terms by analyzing what has recently sold in the area within the same criteria.
Contingency Clauses
Buyer offers often contain contingency clauses that must be met before the contract is considered binding. I will work with you to determine which contingencies might be best for you and your buying situations. Contingencies gives you time to take care of final details. Buyer contingencies can include the following:
• Approved buyer financing
• Appraisal of the property
• Buyer selling an existing home
• Satisfactory home inspection report
• Termite inspection and results
• Disclosures presented by the seller(s)
How can a seller and/or buyer respond to an offer or counteroffer?
Once an offer is submitted to either a seller or buyer, they can respond in a couple of ways:
• Accept the offer
• Decline the offer
• Not respond at all
• Make a counteroffer
A counter offer is nothing more than a revision of your offer. Offers and counteroffers reflect the back and forth activity of the marketplace. It is a very common, efficient, and practical process, but one that may contain tricky clauses and hidden costs. Because counteroffers are very common, it is important for buyers to remain in close contact with me during the negotiation process so that any proposed changes can be quickly reviewed. Remember this important fact: it always comes down to what the buyer is willing to offer and what the seller is willing to accept. Negotiating is the point where the value of an experienced Realtor® is clearly evident because I know the community, have seen numerous homes for sale, know local values, and have spent several years negotiating realty transactions. Also keep in mind that this is NOT war and not winner take all. Instead negotiating should be seen as a natural business process.
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