How you negotiate the seller's counter offer will also depend on the type of market you're in. You might find it hard to negotiate this aspect of the counter offer. This is especially true in a slow real estate market. They do this because they know most buyers will refuse to move forward without those contingencies.īut if you try to make the agreement contingent upon the sale of your current home, the seller might shoot you down. Sellers almost always accept the home-inspection contingency, as well as the financing contingency. Lastly, the seller can make a counter offer that rejects or modifies certain contingencies you made in the purchase agreement. In this scenario, they are essentially allowing you to finance your closing costs into the loan. They could also agree to contribute $6,000 toward your closing costs, while increasing the sale price by $6,000. The seller might simply say no to this request. This is a common strategy in a buyers market, but it doesn't always work. For example, let's say you ask them to cover $6,000 worth of your closing costs. The seller's counter offer might also address any contributions toward closing costs. In most cases, the buyer will accept the seller's proposed changes to the closing date, if it's not a big difference. So they sign a counter offer back to you proposing a 45-day escrow period. But maybe the seller needs more time to pack up and move. In our scenario, you asked for a closing date 30 days from acceptance. They can make this change alone, or in conjunction with other changes to the sale price, contingencies, etc. The seller might also make changes to the closing date. You can then choose to accept the seller's proposal or make another counter offer back to them. But if they give you a counter offer below the original list price, the negotiations are on. The second scenario (countering with the asking price) means they are not willing to negotiate on price. Or, they might counter back with their original asking price. They might offer a price that is somewhere in between your offer and the original asking price. The seller might change this number in one of two ways. The sale price is the most commonly changed item in the seller-to-buyer counter offer. In most cases, the counter offer will include changes to one or more of the following items: In real estate terms, this is appropriately referred to as the seller-to-buyer counter offer. The seller makes a counter offer back to you. At least, not within the context of this article. There's not much to say about the first and third scenarios. The seller ignores your offer entirely, possibly because it was much lower than the asking price.The seller makes a counter offer to adjust one or more of the conditions mentioned above.The seller accepts your offer without any conditions, and you jump for joy.What happens next? It could be one of three scenarios: You put a 48-hour sign-back requirement on the purchase agreement, and then you presented it to the seller. You're not asking for any additional personal property, aside from the home itself. You have a contingency for the home inspection and also for your financing. You're asking for a closing date 30 days from the time of acceptance. So you've done your market research, and you're ready to make an offer for the home. Now let's look at some strategies for negotiating the counter offer with the seller. We also talked about the standard parts of a real estate purchase agreement. Multi counter offer residential purchase agreement how to#In the previous part of this lesson, I explained how to put together your offer when buying a home. You can view the first part of this tutorial here. Multi counter offer residential purchase agreement series#Note: This article is part two in a two-part series on buyer-seller negotiations. By Brandon Cornett | © 2021, all rights reserved | Copyright policy
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