Counter Offer Home Buying
Theoretically, the buyer and seller can go back and forth with counter offers until they reach an agreement. When the buyer and seller both sign the offer, it becomes a legally binding purchase agreement.
counter offer home buying
And know your local real estate market. If you are in a real estate market that is competitive, a counteroffer might be a poor strategy. In a competitive market, when you counteroffer you risk losing out on a deal.
Review every part of a counteroffer and make sure you understand every detail. Your real estate agent can help guide you through the process. A good agent will help you understand the specifics of the offer and help you make any negotiations.
When the buyer and seller both sign the offer, they make a legal agreement to follow through on the terms of the contract. In the time between when the offer (or counteroffer) is signed by both parties and the time of the closing, a lot can happen.
If the inspections reveal issues with the house that the buyer was unaware of when they signed the purchase agreement, they have the option to walk away from the deal or make a counteroffer to ask the seller to compensate for the newly discovered issues.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Homebuyers are generally on the receiving end of counter-offers: You bid on a house and the seller either accepts, rejects or counters. The major benefit of a counter-offer for buyers is the potential to secure the home for less money and on better terms, always a good thing.
While it is possible to field multiple offers on a home from several buyers simultaneously, it is considered unethical to accept a better offer from a new buyer while in negotiations with any other buyer.
Since compromise is the heart of real estate, a counter offer is often the way to go. But a counter offer is easier said than done, and the counter offer may take months before the deal is done. Understanding the art of the real estate counter offer is the key to getting a favorable deal.
The world of real estate is guided by contracts. A Realtor can accept another offer while the buyer is thinking about the counter offer. However, it comes down to the nature of the counter offer contract.
For instance, if the seller had sent the buyer an irrevocable counter offer giving them three days to accept or reject it, then they cannot accept another offer until the stipulated three days are over.
If the buyer signs and accepts the offer before this period is over, the seller cannot back out because they run the risk of being under contract to sell the property to two different buyers. Also, if they accept another offer after the counter offer has been signed and accepted, the first buyer has the right to:
Similarly, if you find a home that fits your dream home expectations, you may be willing to pay whatever price is listed just to get it. To get the best value from a counter offer, you need to detach yourself emotionally from the home, and look at things from a business point of view.
For example, if the original offer specified a closing date 45 days from acceptance and the seller needs more time to vacate the home, they may present a counter proposing a longer escrow period to allow them the time to make their move. From there, the buyer can either accept or refuse.
This is where your agent comes in: he or she can best help advise you on the right approach to counter offers. In the end, though, you have to decide the best move for you. Your agent can help guide you through negotiations by breaking down the offer specifics. From there, you can decide whether to counter the counter or simply move on.
Outside of those circumstances, keep in mind that the top priority of most sellers is to get the best possible price for their home, so offers that appear to be a joke could strike a nerve. In addition, sellers have no legal obligation to respond to your offer at all so you need to at least get their attention.
You need this budgeting information, and to have a comprehensive picture of what it costs to buy a house in order to negotiate your counter offers wisely. In fact, second to the purchase price, closing costs are often the most negotiated line item between buyers and sellers.
Source: (Luis Villasmil / Unsplash)Respond to counter offers in a timely manner, but know that sellers may try to rush youCounter offers typically come with an expiration date. In many markets, 48 hours is the customary acceptance window, but in a hot real estate market, an offer may only be on the table for 24 hours or less.
The best-case scenario when you submit an offer on a home is that the seller accepts it with no conditions. However, it's normal for sellers to respond with a counteroffer, which means they're open to begin negotiations.
If you decide to continue negotiations by presenting your own counteroffer, your counteroffer may address some but not all of the sellers' concerns. For example, you may decide to pay the higher sales price the sellers asked for, but only if they will agree to cover the closing costs or throw in the gas grill in the backyard.
Contingencies. A seller can reject or modify the contingencies, or conditions for purchase, that you included in your offer. Home inspection, appraisal and home sale are examples of contingencies. Before you consider dropping contingencies, be sure to speak with your real estate agent about the possible risks.
For example, if location is the most important factor, and this home is in the perfect spot for your kids' school and public transportation, stick with the negotiating process and work with your real estate agent to get creative on your counteroffer.
Writing a strong counteroffer can be a matter of having provable, current data. You'll want information at your fingertips regarding what the other party is asking for. Are their cost estimates accurate? Be able to provide documentation to back up your position."}},"@type": "Question","name": "What is the typical counteroffer expiration date?","acceptedAnswer": "@type": "Answer","text": "The expiration date of a counteroffer can depend on the market at the time. Forty-eight hours is common, but this time frame can be cut in half in a hot market. It's best to respond as quickly as possible."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.BudgetingBudgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps View All InvestingInvesting Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps View All MortgagesMortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates View All EconomicsEconomics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy View All BankingBanking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates View All Small BusinessSmall Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success View All Career PlanningCareer Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes View All MoreMore Credit Cards Insurance Taxes Credit Reports & Scores Loans Personal Stories About UsAbout Us The Balance Financial Review Board Diversity & Inclusion Pledge View All Follow Us
Budgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps Investing Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps Mortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates Economics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy Banking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates Small Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success Career Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes More Credit Cards Insurance Taxes Credit Reports & Scores Loans Financial Terms Dictionary About Us The Balance Financial Review Board Diversity & Inclusion Pledge Mortgages & Home Loans Homeowner GuideAll About Real Estate CounteroffersThe Counteroffer Chess Match 041b061a72