During the counteroffer and renegotiation period, the key is to establish a baseline of what you’re looking for.
So, you put your house up for sale, a few buyers came and took a look at it, and you received an offer.
Congratulations! At this point, you do one of three things. You can either accept the offer outright, reject it outright, or take the most common path: make a counteroffer.
When making a counteroffer, you draft an offer with your agent that states that you’ll sell your property to the buyer with the terms you’ve outlined. The two points of a counteroffer that are most commonly renegotiated are prices and dates.
In terms of price, sellers always want to sell at a higher price, while buyers always want to buy at a lower price. The key is to find a happy medium that satisfies both parties. As far as dates go, the best way to resolve any issues is to have both parties’ agents discuss the issue before any offer is written. Doing this can also determine if there are any other issues that need to be dealt with before pen is put to paper. The more information each side has, the simpler the transaction will be.
For example, the seller might need the funds from the sale to purchase their next property. Or the buyer might have already sold their current home and now they have a date in mind when they need to transfer the funds to purchase the property in question. You might also have to counteroffer what appliances or other attachments are included in the deal.
If an agreement is reached, another renegotiation typically happens after an inspector has looked at the property. There may be issues with the home that the buyer wasn’t aware of beforehand. They still want to buy the property, but if they’re fixing any repairs themselves, they want that reflected in the final sale price.
If the buyer is getting a mortgage loan to buy your house, the bank will hire an appraiser to evaluate the property. If there’s any discrepancy between the price you and the buyer agreed to and what the appraiser values the house at, there will be a renegotiation over how to bridge the gap between those two numbers.
During the counteroffer and renegotiation period, the key is to establish a baseline for what you’re looking for. If you’re a buyer, you don’t want to spend all your money on the sale and have nothing left for repairs or renovations. As a seller, have an idea of what you need to take away from the property and communicate early and often with your Realtor. The more we know, the more we can help you.
If you have any other questions about counteroffers and renegotiations or you have any other real estate needs I can assist you with, don’t hesitate to reach out to me. I’d be happy to assist you.