Reason 60 - Your Real Estate Agent Helps You Evaluate Owner’s Counter-Offer

Counter-offers are usually tendered by the home seller after a buyer expressed interest to enter into purchase agreement. Surely this response shows the seller’s willingness to accept the buyer’s offer, which is subject of several conditions.

Specified conditions or particulars must be clearly emphasized in the counter-offer document, including one or a combination of the following: a) total consideration (which is generally a higher price); b) increasing the amount of the earnest deposit; c) a refusal to pay for certain reports or fees; d) changing service providers; e) altering the settlement, or possession date; f) excluding any personal property from the contract, and g) modification of any contingency frame.

From the above items you will surely find it practical to have the advice of someone who knows better. If you are a buyer and had graciously accepted the counter-offer conditions, you have to thoroughly review the bargaining process.

Even though both the buyer and seller may agree to some of the terms of a purchase/sale offer, any change effectively creates a counter-offer. In other words, all previous deals are off and the parties are back to square one in the negotiation process.

In many cases, there are probabilities that the seller may accept offers from other buyers. Be on your toes in keeping the deal on track, as competing buyers might have attractive offers too.

Attractive offers may include offering the seller money up front, or perhaps the seller cannot afford to pursue another counter offers, aside from other reasons.

If you are a seller and negotiating with your buyer’s agent, be specific and straight-forward. Tell your buyer (though the realtor) how much is too much, so that the realtor can do his assignment in weighing the current market conditions and suggest the best approach to take in terms of agreeing with price, payment scheme, and negotiating tactics.

Buyers, on the other hand, should make it a point that communication with the seller or the seller’s representative is open and clear. This is to avoid problems of relaying inappropriate information. It’s better to write down what your agent is allowed to say to avoid disruptions in   the negotiation process.

In buying properties, know what you only need, and set-aside things that may seem attractive, but would make the price higher. Set limitations and make these things clear with your seller.       

Buy, Sell, Rent, Invest, In Singapore

Mindy Yong 杨雯诗

CEA Registration Number : R021232Z

Tel: (+65) 91002985
Fax: (+65) 64021826

mindy@mindyyong.com

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