What is real estate counteroffers?. For those who directly involved with selling or home buying certainly know this term. A counter offer defines an advanced offer made in response to the original bid (the beginner price).
When you as seller gets an offer from the buyers, sellers have an opportunity to reject, accept or counter it to determine what is the fix price both (buyer and seller) agree with.
As we know that home buying can be the difficult task ever, so if you feel hesitated to decide by your own, use a real estate agent to help you negotiate is a better way. The process of the price re-negotiation of both we called counter offer.
Tips for Making Real Estate Counteroffers
So the first thing we need is negotiation. We hope these strategies will make a counter offer both, seller and buyer will be accepted.
As a seller, you need to consider about closing fee. They are allowed to pay more of the amount of closing fee. They can offer to pay some of the buyer’s closing fee. How much it this?. Closing fee commonly is more or less 3% – 5% of the number of mortgage loan so be sure to calculate your budget to determine whether you afford help this or not.
Keep in mind, don’t forget to consider to add or exclude personal properties like furniture and other stuffs in a negotiation.
While tips for a buyer are, improve your money deposit. Your money deposit should be shown. This takes a big role to communicate to a seller that you really want to buy seriously. Improving this make your negotiation is well done and quicker.
Commonly some people will put 1 – 3% from the sale cost. More percentage you can put down, the bigger opportunity the seller to approve this.
You as A Home Buyer, When Should You Accept A Seller’s Counter Offer
As a buyer, you should know when you must accept the seller’s counter offer. The offer might be exist for 24 hours so be important for you to know where the market position, whether your coverage is in buyer market or seller marker.
Remember that if you’re not yet in a contract if you are countering. This allows the seller to get another better offer. To achieve the deal, buyer and seller work through negotiations before they sign the offer as a binding.
As a buyer there are some factors to consider before you go to accept a seller counter offer;
- Sale deadline, asking for the seller about this. Don’t pass the deadline.
- See your own budget. Whether the seller’s counter offer fits into your budget. Knowing all stuffs of home to include and exclude before sign the agreement.
- Requirements must be filled for the sale to go through
After the counter offer from the seller was accepted by the buyer, both parties can sign a contract. The contract is containing letters sounds that the buyer must get financing, and the seller must fix everything in the house related to the agreement.
Pros and Cons of Counteroffers
Let’s talk about the real estate counteroffers. Counteroffer itself has the pros and cons sides to consider. Here are some counteroffers pros and cons;
- The timeline sometimes works on you if accepted so it makes you easy doing the transaction
- If accepted, you can also get the better cost, agreed by both parties with the friendly good seller
- Sometimes agreement and some information about the new home aren’t met, the only way to make a deal work is having a subsequent counteroffer
- Miss the home. It means that, the seller could get another better counteroffer during the time they are considering your counteroffer. This could be unlucky for you because you will miss the home. Especially if that is your dreamy house.
- Probably you as a buyer ends up with the agreement with the worse terms than before.
- Lose the sale of home could be disappointing
FAQs Related with Real Estate Counteroffers
Here are some FAQs that mostly asked;
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Can sellers make counter offers with more than one buyer?
The answer depends on your state laws. Every country has the different rules. You need to ask for the real estate agent in your particular state to know this information. In fact, sellers should not make multiple offers at once as long as it can harm both parties (buyer and seller side).
Should the seller accept a lowball offer?
Whatever condition, when the seller gets very low offer or unlogical offer, they should counter this. Actually there are some reasons why a buyer makes the very low offer i.e.
- The buyers are beginners in this case
- They don’t know yet the real cost in the market
- They aren’t too serious seeking a home for dwelling
- They try evaluating seller
- They assume that the home quality isn’t worth with the price
Well, we hope that information about real estate counteroffers above can inspire you getting the best home.
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