Selling Step 5:
Offers, Counteroffers and Negotiation:
Selling your home involves both business and personal issues. We will also help you get your home ready to Sell. Buyers will be looking at your home and there agent will submit an offer to me if they decide to make one. I will draft a Net Proceeds Worksheet based on the offer written and present it along with the offer to you. By doing it this way it will help us to determine the net proceeds after all cost. Since some buyers offer cash, some offer contracts with conventional financing while others offer with FHA or VA financing. Different buyer financing options determine different cost for all parties. Some buyers will ask the seller to pay closing cost and some will ask you to provide a home warranty. We provide a lot of Seller Tactics to get you top dollar.
What is an Offer?
When you put your home on the market, you are essentially making an offer to buyers for a given number can acquire your home for. Buyers, in turn will make an offer to you that you can respond with in several ways.
The process of making offers varies around the country. Typically, the buyer’s agent will present a written offer to the seller through the seller’s agent.
What is a Counteroffer?
A counteroffer is nothing more than a new offer with different terms. Offers and counteroffers reflect the back-and-forth activity of the marketplace. It’s a common, efficient and practical process. All parties strive for a positive outcome.
What is an Acceptable Offer?
The goal of every seller is to have a line of buyers outside the front door, each bringing higher and higher offers. And while this has been known to happen, in most markets there is some balance between the number of buyers and sellers. To determine whether a buyer’s offer is acceptable, the seller should consider the following questions:
- Has the buyer accepted the asking price or something close?
- Has the buyer asked for closing cost?
- Is there a possible better deal than the buyer’s offer? If a home has not attracted an offer after several months, we need to recognize that each month costs are being incurred for mortgage payments, taxes and insurance.
- Do you have enough time to wait for other offers?
- What if no other offers are received?
- What if several offers are received? Do you choose the higher offer from the purchaser with questionable finances who may not be able to close, or a lesser offer from a buyer with preapproved financing?
- What are the contingencies and what time period do they last for if other offers are received?
In each case, we review the pros and cons of each offer and then determine whether an offer is acceptable.
Contingencies and “Subject to” Clauses:
Buyers offer often contain contingencies or “subject to” clauses that must be met before the contract is considered binding. They can include you are not familiar with. They can include the following:
- approved financing
- buyer selling an existing home
- satisfactory home inspection report
- test results for environmental factors including radon, mold and water quality
- termite inspections
We make sure that any buyer contingencies have a time clause, also called a kick-out clause. This limits the contingency to a short time period (say 12, 24 or 48 hours) should you receive another acceptable offer. This makes sure you are able to pursue other offers without undue restraint.
How Do You Negotiate?
No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. However this is where we come in. We know the community and have seen numerous homes for sale. We know local values and have experience negotiating realty transactions. Also, we can help you avoid getting locked into a deal that’s likely to fall through because of the prospective buyer’s finances.
Real estate bargaining typically involves compromises by both sides:
It’s not war; it’s not winner-take-all. Instead, negotiating should be seen as a natural business process: buyers should be treated with respect, and owners should never lose sight of either their best interests or their baseline transaction requirements.
There are a lot of considerations, not just price, in making and negotiating offers. This is again where we come in and help guide you to a win-win negotiation.