How to choose the best offer and Negotiate with confidence - Maranda Christensen | NC Realtor®/Broker

Your Guide to

Negotiating and Choosing The Best Offer

Price is just one of the many considerations when deciding which offer is best for your home. Here are some of the other factors that matter + some negotiation advice.

Contingencies

The fewer contingencies on an offer the better. Shorter time periods are also valuable.
*Example of a contingency (a home buyer needs to sell before they can close on a new home)

All Cash Buyer

A cash offer is usually more appealing than a finance offer as the seller doesn’t need
to worry about the bank approving the loan.
*Keep in mind, if buyer is an investor, they won’t have as much emotion invested in the purchase. This doesn’t leave as much room for negotiating and they may be more likely to walk.

Pre-Approval

Assures home sellers that the buyer can get the loan they need.
*Ensure that the offers you receive include proof of funds or a current pre-approval letter.

Loan Type

A conventional loan is often the least complicated. This is an appealing choice for sellers.
An FHA loan can cause delays because they require certain repairs and approvals.

Closing Timeline

You might need to close quickly to move on to the next adventure, or you
might need to extend closing to allow time for the next home to be ready.
Choosing the offer with the closing time that fits your needs will be most
attractive to you.

Closing Costs

Sometimes an offer comes in high, but the buyer asks you to pay a
percentage of the buyer’s closing costs or ask that you also provide a home warranty.
*Review offer fully before accepting so that you know what you’ve just agreed to. A Realtor will outline all terms and details of the offer for you.

Repair Requests

If the home needs some repairs, but you don’t have the time or money to do
them, a buyer who is willing to do them for you might be what you need.

Offer Price

Of course price matters too! If a high offer will cost you more in closing costs,
repairs or other factors—then it probably won’t be the better offer.

NEGOTIATIONS

After an offer is submitted…

We Can:

Accept the Offer
Decline the Offer
- If the offer isn’t close enough to your expectation, then there is no need to further negotiate. (I.E. Offer comes in $30k below market value and you’ve only been listed 1-14 days)
Counter-Offer
- A counter-offer is when you offer different terms to the buyer. (Remember, the home buyer is a person too, think of fair terms for your both. What might not be important to you, is to them. Find their motive as best you can.)

The Buyer Can Then:

Accept the Counter-Offer (*Note that their initial offer is void once you submit a counter offer)
Decline the Counter-Offer
Counter the Counter-Offer
- You can negotiate back and forth as many times as needed until you can reach an agreement or someone chooses to walk away.

Offer is Accepted:

You will sign the purchase agreement and you are now officially under contract!
This period of time is called the contingency (due diligence) period.
Now inspections, appraisals, or anything else built into your purchase
agreement will take place.