Presenting 2 Simultaneous Counter Offers to the same party

By
Real Estate Agent with Progressive Realty (Boise Idaho) www.Progressive-Realty.info DB-17066

I am a Realtor in Meridian, Idaho (suburb of Boise).  For years, I have used an "Alternate of Choice" counter offer process but am surprised it isn't used more often.

Say for example, you have a home listed for $250,000 and an offer comes in at $250,000 asking for $10,000 in financial incentives so the net to the seller is effectively an offer of $240,000.  In my scenerio, I might prepare two simultaneous counter offers:

  • Counter offer  #1 = Raise price from $250,000 to $255,000 including the concession;
  • Counter offer #A = Drop the concession and sell the home for $245,000.
This way, if it is critical to include the financial concession, the seller still has the yeild they needed after including it.  If not, the buyer buys the home for less. Either way, the seller nets the same amount and the property closes.  I disclose in each counter that we are countering back with their choice of #1 or #A and that acceptance of one superceeds the other.

What are your thoughts?

Jim Paulson, CRS, GRI, EPRO, EcoBroker – Owner/Broker – Progressive Realty Corporation – http://www.Progressive-Realty.info

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Rainmaker
520,008
Sandy Nelson
Riley Jackson Real Estate Inc. - Olympia, WA
your Olympia area Realtor

Paul,

I've never considered writing two simultaneous counter offers. I usually call the selling agent and ask if the concessions are more important to his/her clients, or a low sales price.

Sandy

Oct 12, 2008 06:38 AM #1
Rainmaker
688,376
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Sounds like a great idea.  This way the seller can choose which offer they want and still get what they want.

Oct 12, 2008 06:38 AM #2
Rainmaker
378,350
June Stark
Elite Realty-Luxury Homes & Condos On & Off the Strip - Las Vegas, NV
Las Vegas Condos & Luxury Homes Expert

I usually write one counter and place a clause" Buyer to Seller an Option from Below".

 

Then I list the options on one counter.  Less paperwork!

Oct 12, 2008 06:49 AM #3
Rainmaker
299,380
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

June, I thought of using the option of the two choices on the same form, but on our forms the signature boxes are at the bottom of the page which would require a change "above" the signature with attorney's usually frown on.  How do you get around that issue?

Jim Paulson, CRS, GRI, EPRO, EcoBroker – Owner/Broker – Progressive Realty Corporation – http://www.Progressive-Realty.info

Oct 12, 2008 06:58 AM #4
Rainmaker
214,131
Linda Graves Arnold
Coldwell Banker Gundaker-St. Louis, MO - Chesterfield, MO
St. Louis Real Estate Pro - 314-422-2762 - Referr

We usually take the approach of calling the agent to work things out verbally, then finalize in writing.  We offer both options to the other agent and once worked out, follow with paper.  Much easier than all of the paper chasing when parties are not in close proximity or don't have fax or scan capabilities.

Linda

 

Oct 12, 2008 07:07 AM #5
Rainmaker
378,350
June Stark
Elite Realty-Luxury Homes & Condos On & Off the Strip - Las Vegas, NV
Las Vegas Condos & Luxury Homes Expert

Jim: We have the same situation on our counter offer.  The Buyer just has to sign and check the box that says he is accepting the counter subject to the next conter - which his agent draft with the option selected and any other items.

In an ideal worls, it would work out the way Jim & Linda Arnold suggested, and their way certainly keeps the papertrail simplified, but sometimes the clients do not feel they are properly represented, with a lot of "behind the scene" negotiations and prefer to see everything in hard copy black & white.  Depends on who you are dealing with.

 

 

Oct 12, 2008 07:37 AM #6
Rainer
194,076
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

I never gave this much thought before but I will look at it closer now, great post!

Oct 12, 2008 07:42 AM #7
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Rainmaker
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Jim Paulson

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