Counter Offers On Real Estate Purchase
Counter offers happen after a home buyer submits a offer on the home that is below the listed price of the home and the seller counters backs with a price that is lower than the listed price but higher than the buyer’s initial offer. A counter is usually given when the home seller will accept the home buyer’s purchase offer contingent upon the following terms and conditions.
1. Higher purchase price than the initial purchase price offered by the home buyer but lower than the listed price of the property.
2. Closing date considerations and closing terms. For example, a seller may want a fast closing or exclude the appliances.
3. Potential increase of earnest money and shorter contingency periods. For example, the seller may want the home inspection period and mortgage contingency period shortened. The seller may also want to counter to the home buyer for a larger earnest money deposit. There are many things that the seller can counter with.
Sellers Counter Offer
When a seller counter offers with a lower price that the home is listed from your initial purchase offer, you can counter offer back to the seller with a higher purchase price than you originally offered but lower than what the seller counter offered. Counter offers can go back and forth until a mutual price is agreed on between both parties.
No Counter Offers
When you submit a low ball real estate purchase offer, some sellers will not respond back with a counter offer. The seller may also not respond back with a counter offer and demand the full listing price. Properties with multiple offers normally go into a bidding war and the seller does not have to counter offer on every single offer the seller gets. The seller can review the multiple offers and decide to counter offer the home buyer of the seller’s choice. The seller will await the home bidder’s response before he or she might counter a different offer. Not every real estate purchase offer needs to be countered by the seller. The seller can pick and choose which contract offer is best and will counter that particular contract. Once the seller’s counter offer is accepted by the home buyer, than a deal is struct by both parties.
By Gustan Cho