There are many things that can happen between the initial offer and closing. Let's talk about the counteroffer.
Buying a home is usually not as simple as making an offer and closing a deal immediately. It is not uncommon for deals to go back and forth for a few weeks before both the buyer and seller are satisfied.
The way for the parties to negotiate is through a counteroffer. A counter offer is a rejection and a counter to an offer previously made by the other party. The counteroffers are typically handled between the real estate agents and tend to be time sensitive.
Selling and buying homes can be considered more of a process than a simple transactions. You should understand counteroffers before you make your first offer.
Why was my offer countered?
As a buyer, if you chose to make an offer below the list price of the home, the seller may chose to reject and counter the offer. There may be multiple offers and the agent will lay out all the options for their client and let the buyers agents know of their decisions.
Sellers many also counter closing dates, on top of the selling price. If they want to move out quickly, sellers may want to push the closing date earlier.
Counters on price and closing dates are common for both parties. The condition of the home is a large factor on counters. Any problems found on ongoing research regarding the home can result in a counteroffer. Appliances also are a common source of negotiation.
The power of negotiation
When receiving a counteroffer, it is important to have an experienced real estate agent who can maximize your advantages. Both sellers and buyers are able to take advantage through smart counter offers.
When negotiating, knowledge is power. Some sellers use their pending home to finance their new home. These sellers are likely eager to make a deal.
If you are selling a home with known issues, it is important to plan for these problems during negotiations. A buyer may ask for repairs prior to closing or for a cost deduction.
Responding to counteroffers
If you've received a counteroffer, be sure to carefully review each aspect. Real estate agents, other than yours, have no responsibility to read the contract.
Pay attention to each individual counter offer, they include old and new information. If you are counter offering prior to an appraisal, be prepared for future counteroffers.
When buying or selling a home, be sure to establish a baseline for when you will walk away. Buyers want leftover money for improvements and repairs, and sellers need to make a certain amount off of a sale.
The PorchLight Realty team can make the counteroffer process beneficial for you. In this situation, communication with your agent is key.