Offers, Counteroffers and Negotiation
When you are ready to buy, you will need to make a written offer. Peachtree Fine Properties has standard purchase and sale agreements and will help you put together a written, legally binding offer that reflects the price as well as terms and conditions that are right for you. We will guide you through the offer, counteroffer, negotiating and closing processes.
How Much Should You Offer?
You sometimes hear that the amount of your offer should be x percent below the seller’s asking price or y percent less than you’re really willing to pay. In practice, a successful offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order. Peachtree Fine Properties will help you determine a suitable offer price and terms.
Terms and Conditions
While much attention is given to offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers – or additional costs. Terms are extremely important and should be carefully reviewed; they may include an earnest money deposit, contingency deadlines for inspection and/or mortgage approval, payment of closing costs, etc.
Contingencies and “Subject to” Clauses
Buyer offers often contain contingencies or “subject to” clauses that must be met before the contract is closed. This gives you time to take care of final details. Contingencies can include the following:
• approved financing
• buyer selling an existing home
• satisfactory home inspection report
• test results for environmental factors including radon, mold and water quality
• termite inspections
Peachtree Fine Properties can help you determine which contingencies you should include for your home buying situation. Each contingency will include a time clause which limits the time that the contingency is outstanding.
How Do You Make an Offer?
When a home is made available for sale the home seller is making an offer to buyers: for a given dollar amount plus other terms. Buyers, in turn, can respond with several options:
• accept the offer
• decline the offer
• make a counteroffer
To make an offer to purchase the home from the seller, Peachtree Fine Properties will complete a written offer using the terms and conditions as discussed with you. Your offer will be presented to the seller’s agent who will present your offer to the seller. The owner, in turn, may accept the offer, reject it or make a counteroffer.
What is a Counteroffer?
A counteroffer is a new offer with different terms. Offers and counteroffers reflect the back-and-forth activity of the marketplace. It’s a common, efficient and practical process, but also one that may contain tricky clauses and hidden costs. Because of this, and because counteroffers are common, it’s important for buyers to remain in close contact with Peachtree Fine Properties during the negotiation process so that any proposed changes can be quickly reviewed.
How Do You Negotiate?
No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. Peachtree Fine Properties has the experience necessary to know the community, been involved in numerous homes for sale, knows local values and has spent years negotiating real estate transactions.
Real estate bargaining typically involves compromises by both sides. It’s not war; it’s not winner-take-all. Instead, negotiating should be seen as a natural business process: buyers should be treated with respect, and owners should never lose sight of either their best interests or their baseline transaction requirements, which must be met before the home can be sold.
There are a lot of considerations, not just price, in making and negotiating offers. Peachtree Fine Properties can guide you to a win-win negotiation.