So you’ve made all the necessary arrangements by putting your home on the market and working with a qualified listing agent. When you receive an offer from a potential buyer, what comes next? Dealing with offers and understanding the terms of a real estate contact are the next important steps in the process of selling your home. You will want to take into account several things when evaluating an offer from a potential buyer. Your listing agent will work with you to understand what the terms of an offer mean and which offer is more favorable to your situation and what you are wanting and your goals. All Mountain Home Properties agents are highly qualified to help you through the home selling process and advise you in dealing with offers.
When a potential buyer makes an offer, the terms should come in writing. You have several options after you receive an offer. Pay attention to all of the terms of the offer. You will want to look at the price they are offering to pay for the property, the closing date, the terms for any repairs, and any other qualifications they are asking for, such as a time limit to when the offer can be accepted or rejected. In the offer, the potential buyer will lay out exactly what they will be expected to do if you accept their offer.
Once you’ve read over the offer thoroughly with your listing agent, you can either accept the offer straight out, reject the offer by letting the time expire on the time limits to their offer, or negotiate. It is usually unwise to reject an appropriate offer outright, most seller’s agents will advise you to negotiate the terms of the offer and try to work with the buyer, leaving open lines of communication and potentially getting your needs and wants met.
When you accept an offer outright, you are accepting all of the terms of the offer, and it is very important to take all considerations into account before you sign the offer terms. Absolutely do not sign the terms if you are unsure. Generally speaking it is unwise to accept an offer on the first bid, because the buyer usually begins their first bid offer low to see how low you might be willing to go for the property. Certainly, their first offer will probably not be the best offer you can get for your property. Unless the buyer offers to pay the listing price or higher, it is usually wise to negotiate.
When negotiating with a potential buyer, the buyer will more than likely also have a buyer’s agent working for them. When you negotiate the terms of the offer, you are essentially extending a counteroffer to the party wanting to buy the property. You can counter any of the terms, the price, and any other extending terms that the buyers asked for. Your counteroffer must be in writing.
After both you and the buyer agree to the contact terms, the negotiating is considered over and all documents are signed and notarized. When you have more than one lucrative offer, you are in a much better negotiating position, because you have more than one option to choose from. Consider all of the terms and select which one best suits your needs.