Counteroffers – What You Need To Know
Posted on | March 4, 2009 | No Comments
A counteroffer is an offer that happens after the initial contract has been presented to the buyer. The buyer makes an offer then the seller responds with a counter offer. This can go on forever until one side accepts or declines. Making a counteroffer is actually much simplier than the initial offering. You will have a ballpark figure of what the seller feels is a price they would sell the home for. You also know that the seller is taking you seriously to respond with a counteroffer.
Please realize that the process of making a counteroffer is a process of psychology. If the seller makes an offer of $214,000 and you respond with $210,000 the difference isn’t really that much. Many buyers and sellers get a number in their head and refuse to go above or below that number. Realize that a couple thousand dollars over a 30 year mortgage loan period is really not that much. If you have to budge a little bit to get a home you desire, it might be worth it.
Once you have decided on home much you will counter with, make sure to talk to your broker and get their opinion. They may prove the point that offering $2,000 less may not be worth it after all the incentives and fees are reduced by the seller. You usually will not have to complete an entirely new contract, but rules are different throughout the country. Once again, make sure to consult your broker on this issue.
A good practice for any home buyer is to make an offer with strict guidelines. Make the offer with the statement, “this offer expires within 48 hours” or “this offer is valid until Friday, March 6th.” This gives the seller a deadline and lets you know if they are really interested in selling you the house. In the current economy, it is likely that anyone interested in buying a home will get an immediate response, but there are still those who are not punctual. These types are sellers are not the ones you will want to work with when negotiating a deal.
- Home Buying
- Final Walk-Through Should Be Scheduled AFTER The Seller Has Moved Out
- Is It Better to Buy a New Home or an Existing Home?
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