When making an offer on a property, the seller may counteroffer by increasing your proposed purchase price.
This new reality requires new insights into buyer-seller interaction models. Traditional sales theories assume information asymmetry and face-to-face meetings between buyer and seller, yet these models may no longer fit today’s savvy consumers using less affluent media channels for communicating.
Buyer’s Agent
Your buyer’s agent should present your offer to the seller; they’ll submit all the relevant documentation via email directly to the listing agent unless you prefer working without one. However, you could work now with them instead – though we don’t advise this route.
Your offer should include the proposed purchase price, deposit amount (known as earnest money), preferred closing date and any home buying contingencies and non-standard inclusions or exclusions you require, financing terms as well as backup documents like bank confirmation letters or personal financial statements if obtaining financing to purchase the property.
Your value selling framework must give sellers confidence in your ability to finance and close a deal quickly and successfully and help avoid unnecessary counteroffers that could delay or derail a sale.
If the seller accepts your offer, that will bring you one step closer to purchasing your new home. But that doesn’t mean the sale is official yet — you still must provide your earnest money deposit, conduct a comprehensive home inspection (essential when purchasing free-standing houses), and have it appraised before finalizing your contract and planning your move! Ensure you closely monitor any deadlines within your agreement to avoid being late!
Seller’s Agent
Real estate offers typically include the purchase price and terms both parties have agreed upon. How these documents are delivered varies based on whether or not you work with a real estate professional and their role. Most often, an offer will be emailed directly to the seller and their agent or handed now by said professional.
The seller’s agent serves the homeowner’s interests and markets their property; their job is to assess your offer to see if they accept it. This may involve back-and-forth dialogue and counter-offers from both sides.
Buyer’s Offer
As part of your purchase offer, when buying a home, you must put together a substantial packet of documents known as your purchase offer. As this document requires extensive details and consideration from you and is something of great significance, you should not hand it off casually; instead, send or deliver it directly to the seller’s agent or drop it off with them now – whether or not that person brings this package depends on whether or not you hired a real estate buyer’s agent or are doing it on your own.
Buyer’s agents typically submit your offer for you, helping to write it and ensure it reflects what you need from the transaction. They also offer presentation meetings as representatives to represent and protect your interests during this process.
Based on your circumstances, it may be wise to include a letter introducing yourself and briefly explaining why you love the property. This can help build rapport between yourself and the seller and increase the odds that they accept your offer.
Your offer should also contain financing terms and necessary contingencies, such as conditional mortgage pre-approval, inspections/appraisals, or your moving timeline. Once they receive it, sellers usually take up to 24 hours to review it and respond – depending on market conditions; they might accept immediately or make counteroffers; if no response comes within this timeframe, consider withdrawing.
Seller’s Counter Offer
At times, sellers may make counteroffers in response to buyer proposals. This typically happens due to discrepancies regarding appraisal value, closing dates, or negotiations on who pays taxes and fees. When this occurs, the seller’s agent will communicate the new counteroffer directly to your agent, who can then review it with you before providing you with a final recommendation to consider.
When crafting your counteroffer, it is crucial to remember the numbers and what you are willing to accept and walk away from. Furthermore, it may help if any emotions arise while going through this process; remembering all the memories created there might cause some strong reactions from sellers or buyers alike. Furthermore, setting your bottom line and sticking with it is helpful to avoid going back and forth for too long.
Using a purchase agreement template will ensure consistency and accuracy in your counteroffer, helping avoid confusion or misunderstandings. Furthermore, writing down both offers and counteroffers rather than verbally discussing them can reduce disputes due to legal enforcement being missed in such an informal communication exchange.
If you accept the seller’s counteroffer, the purchase agreement must be executed to complete the transaction. Most counter-offers contain an expiration date that must be met, or it will become invalid and nullify the offer altogether – keeping this timeline in mind can help streamline negotiations and close on your dream home quickly.
