Once you have put in your initial offer, it is almost a given that you will also be working with your Realtor through a series of counteroffers from the home seller. Having an offer that is accepted with no counter offer is extremely rare. Knowing what your priorities are within your negotiation terms of the contract (price, possession day, condition day, and appliances included) will guide you through this process.
5 Things Your Realtor Knows About Counter Offers
- Counter offers that are done verbally are not official - Verbal counter offers after the original offer are common, as they help save time and keep the purchase contract free from numerous editions and multiple initials that real estate lawyers do not like to see. It is extremely important that all parties involved know that until all parties involved have signed the document the deal is not official. Now there may be precedent in the courts where verbal contracts have been withheld and damages awarded - but verbally agreeing to terms without quickly arranging for a written confirmation is asking for trouble.
- Counter offers can have time limits to have responses. Often a buyer or seller will put a time limit on when they need to hear a response back in order to help speed up the process. This is especially evident in busier months of summer. It is important to have your strategy in place so that a 'time crunch' does not cause you to make a decision that you did not want to make.
- You can withdraw or change your counter offer any time up until there is a response by the other party. If the other party has not responded to your offer, you can instruct your Realtor to contact the seller and inform them immediately that you no longer wish to have the offer in place. Although this is not common, it may be the right decision to make in certain circumstances.
- Counter offers are usually quite quick - Once people are together and the initial offer is presented, counter offers usually come within the same day, depending on what time of day the original offer is presented. You don't have to worry that you will have to wait for days to hear back from the other party. There are exceptions to this rule, however, this information is usually
- Numerous counter offers can make the both parties feel - Arbitration is a tool that the NHL uses to settle disputes. It involves a player's agent and a general manager sitting down with an Arbitrator to present a case as to why their price should be decided upon. In doing this, the team is forced to bring up the player's deficiencie3s in order to get the decision to go their way. What ends up happening is the player feels as though his team does not actually value what he brings to the table. This also can occur once negotiations reach a 3rd, 4th, or further counter. Each party starts to nitpick at the other parties' position, and it can cause a confrontational response. That's why it is so important for tact and logic for each party's position during the counteroffers.
Make sure that you are prepared and clear in communicating with your Realtor through the counter offer process - it will help you take that final step towards buying your dream home!