There are three little words that can make buyers very anxious: Offer To Purchase. However, there need not be any mystery or fear attached to that phrase. With an experienced professional guiding the process, feelings of trepidation can quickly turn to excitement and enthusiasm.
While many terms and conditions may be attached to an offer, the real biggie, of course, is the price. While you may have heard that your offer should be a certain percentage below the asking price, or even a percentage below what you are willing to pay, consideration of your offer will always be affected by the laws of supply and demand.
When buyers compete, sellers often see full price or over full price offers. In our current market with record low inventories, most sellers are receiving multiple offer over the list price. Currently, offers that are $10,000, $15,000 or more over the list price are not uncommon. Typically, your offer will be presented to the seller’s agent who will then present it to the seller. The seller may accept or reject the offer, but it’s quite common for the seller to reply with a counter-offer.
Since it’s often not a simple Yes or No answer, it is absolutely critical for you to stay in close contact with your representative, so that the negotiation is handled smoothly and in a timely manner. Take heart that a counter-offer is not a rejection. As long as the offer is on the table, you can nearly always negotiate your way to a Yes!