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San Diego real estate library
Real Estate --- The Purchase Offer and Counteroffer
So your very first offer has been made and your agent calls
you right away. You want to fine out how much the offer was for
right away. But most agents ask the seller to hold off until
he/she can arrive and review the offer. Don’t be worried that
the price is automatically going to be lower than you wanted.
You can ALWAYS make a counter offer. Don’t just run away from
the offer altogether.
Any offer on a home is a good thing. This means someone wants
your property. You do not have to accept it of course. This is
what countering an offer is all about. This is where you get the
chance to have your say in the matter. You may not agree with
the terms of the offer but review it over carefully.
There are many good offers which get rejected because the
homeowner is not happy with the price the buyer offered.
However, if the only thing they are asking for is a reduction in
price deem yourself lucky. You have the opportunity to counter
with a higher number.
The buyer who is less than perfect may ask for a lot more than
just a reduced price. They can ask you to pay points or closing
costs. Depending on what the lender charges per point, this can
become just as awful as a low offer. Most lenders charge 1% per
point. On a $100,000 home this can be as much as $4,000. This
means the buyer is actually offering to pay $96,000 for the
house. If you already turned down an offer of $97,000 you are
actually accepting less with the second offer. Especially if the
buyer has also demand you to pay the closing costs.
By countering an offer instead of just flat out rejecting it,
you can many times negotiate a deal which can be very profitable
to you. The buyer may be in total agreement with the counter
offer. This will make everyone happy in the deal. Think before
you reject any offer.
You can turn any offer into a good solid proposal for everyone
if you do a little consideration. You do not have to accept or
reject an offer as soon as it is presented to you. The agent
will give you a few days to think about it before settling on
what you want to do. When you have made up your mind the agent
will then present your counter offer to the buyer. The buyer
then has the chance to either reject the deal or accept it.
The countering can go on for quite some time if you have a very
interested buyer and a motivated seller. It is crucial to make
sure the last contract which is signed has everything both
parties want listed in the paperwork. There can be addendums,
contingencies, and many other conditions. This is all part of
making a deal in real estate.
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