How Does The Offer and Counter Offer Process Work?
Do you wonder what happens after you make an offer on a home? Are you wondering what a counter offer is and how it works? Read on and we will pull the curtain aside for you!
Step One – Write An Offer On A Home
When you fall in love with a home you fill out a purchase contract as a way to formalize your offer to the seller.
Factors to consider in making the offer on a home:
- recent sales in the area,
- market trends,
- market interest in the home
- any information they can get about the home seller
Then think about your budget, the improvements that the house needs, and the improvements you want. Come up with a number you can live with and write the contract.
Step Two – Submit Your Offer
Your buyer’s agent gathers all of the supporting documents to impress the heck out of the seller and the listing agent. It’s a competitive environment – price is just one of many factors in a successful offer on a home!
Factors that can get an offer on the home accepted:
- Professional communication and presentation.
- Complete package with all the information needed to make a good decision
- A respected proven lender
- A respected, proven agent
- Short time frames for contingencies and close of escrow
Step Three – The Counter Offer
The seller might accept the buyer’s offer as written. But they might also counter one, some, or all of the offers they receive. Multiple Offer Counter Offers are common and sometimes referred to as Bidding Wars.
Here is what you can expect in a multiple offer counter offers:
- They are not identical for every buyer
- If every buyer signed the counter as written they will all be equal
- If there is a price it may, or may not, equal the seller’s highest offer
- The seller has no obligation to give a counter offer to everyone.
- “Best and Final” is becoming a normal counter offer.
Step Four – Your Final Decision
Now you really need to think. How much do you want this home? Many people get whipped about by their emotions. They are either too afraid of paying too much or hyper competitive. Neither reaction is useful. A top agent knows how to help their buyers through this dilemma and craft a great counter offer.
Here is the best way to decide on the right price:
- Make sure you understand your finances and budget!!!!
- Think long term, not just about your comfort today.
- Pick a price. Ask yourself, “Will I be sad if I lose this house to a higher bidder?”
- Then ask yourself, “How will I feel if the seller accepts my offer at this price?”
Remember, the seller probably gave a counter offer that will make everyone equal. Consult with your Top Glendale Ca agent on how to improve your odds of winning with this simple trick.
Step Five – And The Oscar Goes To…..
The seller is going to wait until they think all the buyers have made their decision. This can can happen in a day, but the contract gives three days to respond. 98% of the time the seller will accept an offer from this round- that is why it is critical to put your best offer forward.
The seller’s agent will notify everyone of the results and open escrow.
Most sellers will often accept one of the other, less favorable offers, as their back up offer. If you are offered the back up position we think you should take it. Winter is coming and who knows how many first buyers will get cold feet?
Many buyers think that buying a home is like buying a car. Or a dress shirt…. This is a huge financial transaction and we see huge mistakes made by buyers and less than full time agents, every day. Make sure you aren’t one of them. Make sure you work with a Top Glendale Ca Agent today.