The Dance of Offer and Counter-Offer
Any offer to purchase a home begins a process that is both formal and chaotic at the same time. The home buying process goes through stages that are regular and predictable. State regulations, precedents, and contract law govern real estate transactions in the United States.
Real estate buyers and sellers negotiate the prices and terms that suit them, as long as they use the right forms and legal procedures along the way. This back-and-forth exchange of documents between the parties ends either with or without a sale.
The Tools Of Powerful Negotiation
Buyers who have cash and sellers who have patience are more formidable real estate negotiators. Cash offers have the strongest appeal to selling owners because they remove the greatest element of uncertainty in the transaction, which is whether or not the lender will approve the financing for the deal. Mortgages require time for paperwork, which raises the risk of any number of surprises or bank objections that delay or disqualify the transaction.
Sellers who have the time to be patient have the advantage, the resources to create charming, move-in ready show homes. Flexibility in receiving payment, the attention and interest of multiple buyers puts the power in the hands of purchasers, assuming their pricing expectations are realistic.
When sellers are impatient to sell, the negotiating power goes to the savvy buyer. When property owners need to dispense with a piece of real estate they are much more likely to acquiesce to the demands of bargain-hunting buyers.
A Multitude Of Reasons For Counter Offers
Haggling over the price of purchase is not a typical part of daily activities for most consumers. That is why, as a buyer, you look to your real estate agent for the knowledge and experience to make an offer to purchase suit your intention; it might be your best offer or a low-ball offer. What happens next depends on how motivated the sellers are, and whether they have other offers.
The extremes are that the seller will either accept your bid or reject it. Alternatively, if they think they can get a better deal than anything that’s on the table, they may make a counter offer. A counter offer can be for any number of reasons. The most important choice is working with a Realtor; a property professional will organize the sale of your home or find the right one to purchase, often doing both for clients. When you find a property that appeals to you, put in a bid.
Your Options To Respond To A Counter Offer
You can refuse a counter offer and make a counter to their counter offer, but as a buyer, you want to have one thing in mind. You need to be ready with an exact price and terms that work for you. Otherwise, you should either accept or reject the counter offer and get on to the next step. The final step is either to move on to the next prospect or close and pick up your keys.
Your agent will help you all the way through the process; they will advise you and submit all of the forms that go with the negotiations. The flow of offer and counter offer is fast-paced and exciting and usually end quickly once started. If you can anticipate objections and counter offer from sellers, you can be a strong negotiator and your offer to purchase will make the adventure of buying your home a rewarding one.