Negotiating An Offer
After you have shown a potential buyer around your property and discussed the place with him or her, an offer will then be made to you. This is when the buyer offers to purchase your house.
This offer is usually presented to you and your agent by the buyer's real estate agent. It states all the conditions on which the prospective buyers are offering you buy your home. This form gives the purchase price, along with the items they would like to include as part of the deal, for example, the stove, fridge, dryer or washer. The form also states the closing date of the offer and the amount for the deposit they are willing to give with the offer. Often, this offer depends on the purchaser getting a mortgage and occasionally on having an agreeable house inspection and possibly conditional on them if they are selling their home.
Most of these real estate documents tend to be more buyer-friendly than seller-friendly, as they offer the buyer multiple ways to be able to leave the contract without giving any earnest money to the seller. One of the things that help them out is the financial language. Most contracts offer the buyer an entire refund of the earnest money if they don't qualify for mortgage.
This is as absurd as it sounds. The borrower must be qualified prior to placing the offer with you. With this point in mind, you have to write your counter offer in a language which will eliminate this even from taking place. The easiest way is to state that the earnest money given to you is not refundable after the end of the inspection period. Say that the money is not refundable under the circumstances where the borrower fails to qualify for a loan. This will be quite acceptable because the lender has most probably told them that they do qualify.
In response to this, your real estate agent prepares a counter offer with your guidance. After this, negotiations take place between the two parties until the seller or buyer decategory_IDes to end the debate by giving in to the other party's demands. Realtors say that most counter-responses result in getting the seller a higher price, a better timeframe a change in the down payment, the closing date as well as the amenities which are a part of the sale. Real estate agents can guide you with the laws governing these offers.
If the offer under discussion is conditional on whether the buyer is able to sell his or her property, the documents must have a clause which allows the seller, which is you, to be able to let your property be on sale meanwhile. This means that if a second offer comes up which is acceptable, the initial buyer must either buy your property even if their house has not been sold or the deal must be cancelled.
When all the clauses in the contract have been agreed upon and the deal seems satisfactory, the real estate agent then forwards the paper work to your lawyer.