These tips will help you negotiate the successful sale of your home.

Congratulations! You’ve got the first offer on your home. By following these steps, you’ll have all the information you need to accept the offer, reject it or make a counteroffer. Remember, as your listing agent, I’m working for you and will use my negotiation skills to help you get the best deal.

1. Look over the offer and any clauses and contingencies carefully. Watch for any conditions that may be unacceptable to you such as excessive repairs or an unreasonable timeframe. Determine if the buyer’s offer is contingent on the sale of his or her own home. Be aware of stipulations in contracts that bind the seller and not the buyer. Many buyers will put all kinds of escape clauses into a contract that will let them out of the contract.
2. Evaluate the amount of money the buyer is offering and discuss it with your spouse, agent or attorney.
3. Understand the amount of time you have to respond to the offer. If you don’t respond within that timeframe, the offer will become void.
4. Negotiate any points by presenting a counteroffer.
5. Sign the contract when you have agreed to the buyer’s offer. Once you accept an offer, the agreement becomes a binding contract. Changing your mind could mean trouble for failing to comply with the contract.
   

Counteroffers: an overview

Counteroffers are generated after a buyer has submitted an offer to purchase. Typically, counteroffers will state that the seller has accepted the buyer’s offer subject to certain stipulations. These may include:

• A higher price
• Increasing the size of the earnest money deposit
• Refusal to pay for certain reports or fees
• Changing service providers
• Altering closing or possession dates
• Excluding personal property from the contract
• Modifying contingency timeframes
  

Just as a seller can submit a counteroffer to a buyer, a buyer can counter the seller’s counteroffer, which will then become a counter-counteroffer or Counteroffer #2.

There is no limit to the number of counteroffers that can be made. For example, below I’ve included a scenario of offers and counteroffers on a property listed at $500,000. The seller has submitted an offer of $490,000.

• Counteroffer #1 from Seller to Buyer
  1. Seller counters sales price to $498,000.
  2. Appliances included without warranty.

• Counteroffer #2 from Buyer to Seller
  1. Buyer counters sales price to $495,000.
  2. Appliances included without warranty.

• Counteroffer #3 from Seller to Buyer
  1. Seller counters sales price to $497,000.
  2. Washer and dryer excluded from sale.

• Counteroffer #4 from Buyer to Seller
  1. Buyer counters sales price to $496,000.
  2. Washer and dryer to remain as personal property.

• Counteroffer #5 from Seller to Buyer
  1. Seller agrees to sales price of $495,500.
  2. Refrigerator, washer and dryer excluded from sale.
     

Finally, the buyer accepted the fifth counter and an agreement has been reached.

How are counteroffers rejected?

The seller is not required to respond to an offer, but it doesn’t mean the brokers might not have earned a commission if the seller refuses to respond to a full-price offer. The brokers would likely still demand payment. A non-response doesn’t alleviate the seller’s responsibility to the broker. Here are the most common ways to reject an offer:

• Many purchase contracts provide a spot near the bottom for the seller to initial that the offer has been rejected.
• Sellers can also write “rejected” across the face of the contract, initial and date it.
• Most offers specify a date of expiration of offer in the event the seller elects not to respond.

What about multiple counteroffers?

Sellers may or may not be able to issue multiple counter offers depending on the state. In North Carolina, multiple counteroffers have become the norm. For more specific advice, consult a real estate attorney.

How are counteroffers accepted?

If the seller issues the counteroffer, the buyer can simply accept the counter and deliver it back to the party designated to receive it. Timeliness is always important. Counteroffers contain expirations just like purchase offers, which means the seller can accept another offer while the buyer is deciding whether to sign the counteroffer.

Remember, I will be available every step of the way offering my advice and expertise. I’m working for you and have your best interest in mind.

Got a question? Ask me now!