Offers and Negotiations
“Hey Bob, Steve Freeman with Edina Realty. Good news! We have an offer on your home.”
This is music to every seller’s ears. But in reality, this is where things can get dicey. I only say that because this is the time when emotions can run amok.
It’s important to know that everyone involved in an offer has a job to do.
As a seller, your job is to get as much money for your home with the least amount of hassle.
As a listing agent, my job is to not only protect your interest but to also help you fully understand the offer to know which points are important to work with.
The buyers job is to get the best home for as little money as possible. The buyer’s agent represents the best interest of the buyer and helps the buyer understand what they are offering and how each “ask” impacts the sale.
Both Realtors are working with their respective clients to get the best deal obtainable. Usually both buyer and seller come together saying, “well it’s not exactly what I hoped for, but okay.”
There are 5 basic areas that are usually at issue in an offer:
After explaining how the offer is structured and how each item impacts you, I will complete another “estimated net proceeds” form for the offer as written. Based on this net sheet you have the option of doing one of 3 things:
If you counter the offer, we will contact the buyer’s agent and tell them what we are changing. They will in turn call the buyer, who has the same 3 options. We continue back and forth until we have a “meeting of the minds.” At that point, a form called “Counteroffer Agreement” will be filled out and signed by both the seller’s and the buyer’s. Once signed that will begin the clock ticking for all contingencies.
This is music to every seller’s ears. But in reality, this is where things can get dicey. I only say that because this is the time when emotions can run amok.
It’s important to know that everyone involved in an offer has a job to do.
As a seller, your job is to get as much money for your home with the least amount of hassle.
As a listing agent, my job is to not only protect your interest but to also help you fully understand the offer to know which points are important to work with.
The buyers job is to get the best home for as little money as possible. The buyer’s agent represents the best interest of the buyer and helps the buyer understand what they are offering and how each “ask” impacts the sale.
Both Realtors are working with their respective clients to get the best deal obtainable. Usually both buyer and seller come together saying, “well it’s not exactly what I hoped for, but okay.”
There are 5 basic areas that are usually at issue in an offer:
- Price
- Financing
- Paying buyer closing costs
- Closing date and possession
- Contingencies (Inspection / Radon / Fireplace / Sewer line, Sale of buyer’s home or Financing)
After explaining how the offer is structured and how each item impacts you, I will complete another “estimated net proceeds” form for the offer as written. Based on this net sheet you have the option of doing one of 3 things:
- Accepting the offer
- Countering the offer
- Rejecting the offer
If you counter the offer, we will contact the buyer’s agent and tell them what we are changing. They will in turn call the buyer, who has the same 3 options. We continue back and forth until we have a “meeting of the minds.” At that point, a form called “Counteroffer Agreement” will be filled out and signed by both the seller’s and the buyer’s. Once signed that will begin the clock ticking for all contingencies.
Next Phase:
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