Thursday, November 17, 2016 / by Jason Huerkamp
Here are a few things to consider should you find yourself in that situation.
Seller Counter Offer Consideration
The Purchase Price
Your agent will guide you on this point. If your home has been priced correctly in the beginning, you will have the right information to make your decision. If your home has had many showings and no offers then it may be an important point when considering the offer. However if your home has multiple offers, you can be a little more adventurous with your negotiations. Price is only one consideration in an agreement and sometimes the price will not be the deciding factor.
The Earnest Money Deposit
The earnest money deposit shows the buyers commitment to the transaction. Depending on the mortgage requirements, this could be an item up for discussion.
Occasionally a buyer will want to include an item or items of your personal property. That is normally an easier thing to negotiate. If you have an emotional tie to the item, cross it out, however if it will make or break the purchase and everything else looks good on the paperwork, then consider letting them have it.
The closing conditions may need to be considered with alternative options that would suit both you and the purchaser.
The buyer will sometimes ask for closing fees as part of his condition of purchase. Once again, your agent will guide you with this. If there is a chance that the home may not appraise including the fees, then its not a good idea to entertain that option
Contingencies in an offer to purchase are generally more challenging to negotiate.
The home inspection would be a good thing for the buyer, a recommendation that the buyers agent will expect and although this can sometimes end up costing the seller a little, this could also be a peace of mind solution for all parties.
Title Insurance and giving clear title guarantee is important to both you and the buyer. It is customary for the Seller to pay for Title Insurance.
The Seller normally pays for this and the buyer will often request this as part of the agreement. An experienced Sellers Agent would have told you about this up front when listing the home. A home warranty, which normally covers things like HVAC, home systems and appliances and will give peace of mind to both you and the purchaser beyond the sale of the property.
Buyer Counter Offer Considerations
When buying a home, you the purchaser need to consider what items you have to negotiate in order to make an offer work for you. It would be really difficult to negotiate price, closing, costs and repairs if you are in a multiple offer situation. Too many demands could disqualify your offer completely and cause it to be discarded even without a counter-offer. If you can work with the Seller to give him/her what is vital to their situation, then you can negotiate smaller items. It is all about give and take.
When you receive a counter offer from a seller then look at the items that are absolutely non-negotiable to you. If you are putting yourself at risk in any way, then its not worth considering, however if it means you need to move into a extended stay accommodation or moving in with family for a couple of weeks in order to get the home you want, it just may be worth it.
Be guided by your experienced Buyers agent. They have been through this all before. They will be able to read most situations easily and know where you can extend your options or not.
At the end of the day, when purchasing or selling a home, be flexible, but remember the items that will cause you risk and those that can be negotiated with little change to big picture.