At this point I have met with the buyers, viewed properties with them, researched their choices and presented an offer to the seller's agent or seller. (See Part 1 of this post.)
The seller usually has a day or two to consider the offer. Sometimes the seller will accept the offer as presented but more often than not there is some type of counter offer and negotiation. During negotiations I work to reach an equitable deal for the buyers as the seller's agent is looking to negotiate the most equitable deal for his/her seller.
The price is not the only point negotiated in the offer. Although the price is an extremely important factor sometimes sellers are better served by taking a lower price in order to close earlier or remove other contingencies.
In order to negotiate effectively I have researched past sales for the area and other homes on the market. If there is financing involved I have spoken (with the buyer' permission) to the lender about rates, payments and timeline s for closing. I want to make sure the offer being submitted is valid and can be fully executed. I have also searched public records in order to find out as much information on the home as I can, such as what the seller owes on a mortgage and if renovations have been properly permitted.
Sometimes an offer can be made on a property and it is automatically accepted with no negotiation. Other times there can be an incredibly lengthy negotiation with several offers and counter offers. As an agent it is my responsibility to keep track of all points of the negotiation and relay them to my client.
There are several things to remember during negotiations.
1. Once an offer or counteroffer is made it can be withdrawn if it has not been accepted by the other party even if it is prior to the time of acceptance period stated in the offer.
2. Once a counteroffer is made the original offer is terminated and can no longer be accepted.
3. A seller is not required to entertain or negotiate an offer.
4. A seller does not have to accept an offer even if it is a full-price offer.
5. If a seller receives multiple offers, the seller is under no obligation to negotiate the offers in the order they are made.
6. Unless otherwise stated inspection periods and other contingencies usually refer to calendar days not business days. Make sure contingencies for inspections, financing and appraisals allow enough time to complete the contingency.
7. A contract is not valid until all parties have signed the contract. The effective date is the date the final party signs the contract.
Although it is not required, I prefer all offers and counteroffers to be written so there can be a record. When an agreement between all parties is reached the offer should be written and then signed and dated by all parties to the contract.
Once all parties are in agreement and the final agreement has been signed and dated by all parties we have a valid contract for sale and purchase.
In Part 3 I will explain what a REALTOR® does from the time there is a valid contract until closing.
Interested in buying or selling a home in northeast Lake County Florida, including Eustis, Mount Dora, Howey-in-the-Hills, Tavares and Sorrento contact JoEllen E. Stranger-Thorsen, REALTOR® for all your real estate needs. Visit my website.
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