Offers and Counter Offers

A buyers agent is obligated to write the offer that the perspective buyer is interested in making. I try to inform my buyers through a comparitive market analysis to show them the history and competititon of value for the subject property. Just as the sellers are informed by their listing agent, I inform the buyers so they can be educated on values. Many times the offer the real estate agent submits aren't exactly what the sellers want. There maybe many issues: price, terms, and timing.  

 

What happens after the offer is submitted?

The seller's real estate agent will present the offer to the sellers, along with the buyer's qualifications and preapproval for the loan. (In this market, it is a necessity since the financial markets have become so sticky.)  If the sellers accept the offer, then a purchase agreement is written and signed by both parties.

If the sellers counter the offer, the next action is initiated by the buyers when they make a response, either accepting the counter offer or countering it with yet another figure, timing or terms. If you want to buy a particular house, your chances of succeeding are greater if your initial offer is as close to the asking price as possible. Engaging in lengthy negotiations can run you some risks of losing the home especially if the property has become HOT, or had a recent price change, because another offer could come in, which might be better than your offer.

This isn't a Game as my title implies, but the back and forth can become frustrating for all, and everyone is trying to get things their way. Compromise is what is needed sometimes. Give and Take Ball Game until the meeting of the minds or that things fall apart.