Some people love negotiating. Some prefer to either have an acceptance or a rejection and then move forward. The good thing about negotiating when buying or selling a home is you have a real estate agent who, under your direction, guides you through the process.
But a key point for both parties to remember is that once an offer is rejected and a counteroffer submitted the preceding offer is squashed (at least here in Florida). Legally there is no way to bind a party by saying "OK, we will take the previously countered offer."
Of course I suppose the parties could mutually agree to go back to the terms of the rejected offer and reach an agreement. I am not an attorney. If you have questions regarding contract law, please consult a qualified attorney.
So how does a seller approach the offer? The first thing a seller must do is consider the strength of the offer. Is it a cash? Is it a quick closing (longer between offer and closing then the more chance of a deal failing)? Are there a lot of strings attached (unusual contingencies), etc? Is there supporting documents with offer (proof of funds, mortgage pre-approval, reasonable escrow/down payment)?
Once the quality of the overall (price is only one component albeit the most important) is assessed, there are only three choices (and "maybe" is not one of the choices). And it is important for parties to pay attention to the response time within the offer. If missed, the offer is no longer binding.
|Image courtesy of Stuart Miles at FreeDigitalPhotos.net|
- Reject totally with no counteroffer.
- Reject with a counteroffer presented.
With counteroffers the countering party must decide whether the reward is worth the risk?
Will another $1,000 or $5,000 really make a difference? What happens if the buyer walks? When will the next offer come and at what price?
Buyers should consider whether the chances of finding a property equal or better is likely (at what price and when)?
And one last consideration for buyers to consider... What happens if another higher offer comes in during the process? Is it possible for a buyer to lose out while the counteroffers are being kicked around?
When buying and selling a house or condo there are many unknowns including what a seller will accept or a buyer will pay.
It is critical buyers and sellers have the right real estate agent working with them . Local real estate agents have access to the best and most current information available (not some mega web site that compiles old sold data).
When you are ready to buy or sell a home in Melbourne, Florida (including Viera), please give me a call at 321-693-3850.