Negotiating the sale

Negotiating the Sale

Navigating through offers

The process of navigating through multiple offers can be a daunting task. On the one hand, you like the offer that is the highest but there could be others that have equal appeal as well. There is a lot to go through when looking at offers and deciding who will get top prize. Let’s take a quick look at what entails going through offers and how to navigate this territory. Your realtor will be the best advisor through this process.

Offers Negotiating the Sale

How to choose the best offer

Once you get an offer, you will want to take a look at it and make notes on it. Make a pros and cons list. You are not obligated to reply with an answer right away but you will need to keep in mind that time is of the essence. Be sure to consult your agent about how much time you have to reply.

When looking at multiple offers, consider taking another look at the current real estate market. Things to check out are how many days are the homes for sale on the market in your area. Are the homes receiving asking price, below asking price, or above? Your agent will be able to help give you the most up to date statistics. You can also check on this info if you have the time to research, if you have been given access to the MLS by your agent.

Making a list of pros and cons for each offer and comparing is a great way to get started. Have any offers asked for an appliance to be thrown into the offer. Have any buyers asked for you to jump through any extra hoops? Which buyers have a strong financial position. Place them in order of strongest to least strong. Go over pre-approval letters and offer letters to get a better idea. Make a list of your priorities and go over them with your agent. Keep in mind the closing time frame; the date should meet your needs as well as the buyers.

Accepting the Offer

Accepting an offer

Once you receive an offer or multiple offers and have done your due diligence in looking at the offer, you can do one of three things.

  • Accept the offer
  • Reject the offer
  • Make a counteroffer

A counteroffer is a response to their offer with modifications. This is the negotiating phase and now the ball is in their court.

The Offer Should Include

The offer should include:

  • The total price
  • The amount of the down payment
  • The date the closing will take place
  • And any additions such as a chandelier, washer/dryer etc.

If you do not want the items included, those need to be written in the counter offer. Most agents will ask this in the beginning and be able to state that to the buyer’s agent but sometimes buyers will still ask.

Once you give a counteroffer, you will wait to see if it is accepted by the buyer or if they give another counteroffer.

Most offers will be submitted on a California residential purchase agreement that includes contingencies which will allow the buyers to cancel without penalty if the inspection of the property uncovers major problems. Another contingency will permit the buyer to cancel if they fail to obtain financing.