Your First Offer

Congratulations! Now that you’ve got the first offer on your home, we recommend you use this guide and follow these steps. By following these simple steps, you’ll have all the information you need to accept the offer, reject it or make a counteroffer. Remember, as your listing agent, we work for you and will use our negotiation skills to help you get the best deal.

1. Review the offer and all clauses and contingencies carefully. Be aware of any conditions that may be unacceptable to you such as excessive repairs or an unreasonable timeframe. Is the buyer’s offer contingent on the sale of his or her own home? Be aware of stipulations in contracts that bind the seller but not the buyer.
2. Evaluate the amount of earnest money the buyer is offering and discuss it with your spouse, agent or attorney.
3. Know how much time you have to respond to the offer. If you don’t respond within that timeframe, the offer will become void.
4. Negotiate any points by presenting a counteroffer.
5. Sign the contract when you have agreed to the buyer’s offer. Once you accept an offer, the agreement becomes a binding contract. If you change your mind it could mean trouble for failure to comply with the contract.

Counteroffers: an overview

Counteroffers are generated after a buyer has submitted an offer to purchase. Typically, counteroffers will state that the seller has accepted the buyer’s offer subject to certain stipulations. These may include:

· A higher price

· Increasing the size of the earnest money deposit

· Refusal to pay for certain reports or fees

· Changing service providers

· Altering closing or possession dates

· Excluding personal property from the contract

· Modifying contingency timeframes

Just as a seller can submit a counteroffer to a buyer, a buyer can counter the seller’s counteroffer, which will then become a counter-counteroffer or Counteroffer #2.

There is no limit to the number of counteroffers that can be made. For example, below we’ve included a scenario of offers and counteroffers on a property listed at $500,000. The seller has submitted an offer of $470,000.

Counteroffer #2 from Buyer to Seller

1. Buyer counters sales price to $480,000.
2. Appliances included without warranty.

Counteroffer #3 from Seller to Buyer

1. Seller counters sales price to $485,000.
2. Washer and dryer excluded from sale.

Counteroffer #4 from Buyer to Seller

1. Buyer counters sales price to $485,000.
2. Washer and dryer to remain as personal property.

Counteroffer #5 from Seller to Buyer

1. Seller agrees to sales price of $485,000.
2. Refrigerator, washer and dryer excluded from sale.

Finally, the buyer accepted the fifth counter and an agreement has been reached.

How are counteroffers rejected?

 Here are the most common ways to reject an offer:

· Sellers can also write “rejected” across the face of the contract, initial and date it.

What about multiple counteroffers?

Sellers may or may not be able to issue multiple counter offers depending on the state. In Illinois, multiple counteroffers have become the norm. For more specific advice, consult a real estate attorney.

How are counteroffers accepted?

If the seller issues the counteroffer, the buyer can simply accept the counter and deliver it back to the party designated to receive it. Timeliness is always important. Counteroffers contain expirations just like purchase offers, which means the seller can accept another offer while the buyer is deciding whether to sign the counteroffer.

Remember, we will be with you every step of the way offering our advice and expertise. We work for you and have your best interest in mind.

Ready to place your home on the market? Contact us today.