Receiving your first offer can bring a sense of relief, but don’t let your guard down just yet. You still have several key decisions to make and a limited time to act. Being prepared ahead of time will streamline this process. Once you receive an offer on your home, the real work begins. It’s crucial to be strategic about negotiating and deciding on the offer.
1. Setting Your Acceptable Price and Terms
Before listing your home, decide on the best and final price you are willing to accept. This preparation will simplify the decision-making process when offers start coming in.
Once you receive an offer, you’ll see the buyer's proposed price along with their terms and conditions. This typically includes the closing date, any provisions for fees, contingencies, and your deadline for a response. With this information, you have three options:
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Accept the offer “as is”: Agree to the offer as it stands and finalize the contract.
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Negotiate: Propose changes to the offer through a counteroffer.
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Reject the offer: Decline the offer and wait for another.
2. Handling Negotiations
Negotiating is a common step when selling your home. You may want to counter the buyer’s initial offer by asking for a higher price or changing the closing date. Your real estate agent is a valuable resource during this phase. They can provide insights based on market conditions and your personal goals.
If you choose to negotiate, your agent will draft a counteroffer and send it to the buyer’s agent. The buyer then has the choice to accept, counter, or reject the new terms. This back-and-forth can last from one to three days, although it might take longer depending on the situation.
Knowing your minimum acceptable terms from the start will guide you through negotiations and help you make informed decisions.
Checklist for Reviewing Offers:
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Confirm Offer Price: Is it within your acceptable range?
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Review Terms and Conditions: Are the closing date and other terms acceptable?
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Consider Contingencies: Are there any conditions that might affect the sale?
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Consult Your Agent: Get their expert advice on whether to accept, counter, or reject.
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Set a Deadline: Ensure you respond within the timeframe specified.
By being well-prepared and understanding your options, you’ll make the process of negotiating and accepting the offer smoother and more effective.
With your offer reviewed and negotiations handled, you're almost at the finish line.