Receive an Offer
All of your hard work has paid off, but you won’t know exactly
how much it’s paid off until you see the offer. This is an exciting,
often emotional time, so be prepared.
Your REALTOR® will walk you through the process.
every offer. It’s required that your REALTOR®
show you every offer submitted. They’ll call for an appointment,
usually at your home, to discuss the offer. The buyer’s REALTOR® will
probably be there, too. They are there to represent the buyer’s best
interests in the negotiation. The buyer will not be there, so you can review
and respond to their offer without any awkward pressure.
Your eyes will be immediately drawn to the price!
emotions can really kick in. This isn’t a poker
game, but remain calm. Listen to the REALTORS® before making any judgments.
You’ll probably ask the buyer’s REALTOR® to leave the
Now you and your REALTOR® are alone to discuss the merits of the
offer. Maybe it’s time for a high-five, or maybe it’s time
to plan your counter offer. You may also wish some private time to discuss
things with your spouse.
Three Options when Responding to an Offer.
You can accept the offer.
You got the price you were hoping for, maybe
even more! The closing date looks good and there are no fussy conditions.
You can reject the offer.
This offer isn’t even close.
You can “sign back” or “counter” the offer.
This offer is close, but something’s not quite right. Now the delicate
art of negotiation begins, by “signing back.” Some reasons
why you may want to “sign back” or “counter?”
You want more money.
This is by far the most common reason people “sign back.” Everybody
wants to get the most for their home and as the saying goes “if
you don’t ask,
you don’t get.” Go for it, but don’t get too greedy and
insult someone who has made a fair offer.
You want to change the closing date.
Maybe your buyer has already sold their previous home and has no place
to live. They want to move in soon; sooner than you’d like. Maybe
you haven’t even started looking for a new home! In the same way
that you can “sign back” a higher dollar amount, you can also “sign
back” a compromise closing date. Perhaps the buyer is willing to
offer more money to compensate you for the inconvenience of living in a
motel for a few weeks. Welcome to the world of negotiation and compromise.
There may be some undesirable conditions on the offer.
Conditions are points of contention which must be fulfilled in order
for the sale to go through. Here are some common conditions which buyers
place on their offers
- Buyer to obtain financing. If the buyer doesn’t have a mortgage
lined up, they will often put in this condition. The sale will only go
through if the
buyer can get the mortgage they want. For some sellers, this is too big
an “if”, but the buyer’s REALTOR® will be candid
about their odds of approval.
- Approval to assume mortgage. You have a great mortgage rate on the
property and the buyer only wants your home if they can also take over
your easy payments. Will this potential buyer qualify?
- Sale of purchaser’s home. The buyer hasn’t sold their
existing home yet and they want to be protected from the expense of owning
two properties. Maybe their house will sell in a flash. Maybe it won’t
sell at all. Maybe you don’t want the sale of your home riding on
so many maybes. Time to consult your REALTOR® about the other home
and its odds of selling soon.
- Property Inspection. This condition is becoming standard practice.
Hopefully, you have followed the suggestion of your REALTOR® and disclosed
every detail of your home’s faults, so there won’t be any
surprises. Refusing a home inspection before sale is highly suspicious
to a buyer and may spoil the deal.
The Art of Counter-Offers and Negotiation.
A successful negotiation is one that leaves both you and the buyer feeling
satisfied with the outcome. This is a highly emotional time, so be sure
to regularly “check your head” and ask yourself “How
important is this particular detail to me? Am I willing to jeopardize a
sale over this?” Remember once you “sign back” an offer,
you are releasing the buyer from their offer and they are free to walk
away. Thankfully, your REALTOR® is an expert and seasoned negotiator,
and will help you every step of the way. Happy negotiating and best of
Next Step: Close the Deal