Best Practices For Your Counteroffer

Oftentimes, this is the goal: the offer is perfect, forget about negotiating, and and you can ponder your choices with your new place of residence.

And, every now and then, it occurs. Indeed, some owners accept the first offer presented, and in Northern Virginia in consideration of various rationale.

Conversely, real estate sellers are also known to reject offers because of rationale known only to them. Or make counteroffers. A counteroffer is particularly possible if you bid low, or when you’re up against multiple competing offers.

If the seller counters, it's now the purchaser's turn to either accept, continue negotiations or move on to the next duplex in the City of Alexandria.

In cases such as these, as your enthusiastic agent, please contact me. I will be the local expert to real estate negotiations in Alexandria like 413 S Washington St, if you decide that it's best to haggle with the seller. By this I mean that I will use my experience and negotiating ability as we craft a series of offers and counter-offers to help get you the best deal on the home of your dreams. This is what I do every day.

But, it won't be all me though. I’ll help you understand the negotiating practices we will deploy. Those rules of thumb will vary depending upon the duplex but in Alexandria here are some basics we frequently implement.

In 22314, here are three rules of thumb every property seeker should see when negotiations begin:

1. Reduce your Contingencies – With Caution

   If you want to give your counteroffer a bigger boost, try reducing the number of contingencies you’re requesting. This puts you in a position that makes it difficult for you to back out, thereby reassuring the seller that the deal will likely close.

   Make sure you exercise caution when you are reducing your contingencies. A home-inspection contingency allows you to have the home inspected so that you can request repairs or withdraw your offer. This protects you from buying a home with money-draining problems.

   You could, however, waive a termite inspection if you live in a state where the risk is lower.

   Many factors need to be considered when looking at waiving contingencies, such as your market, your loan program requirements, your risk tolerance, and the circumstances of the house in question. You must also keep in mind that if you waive contingencies and then you find a problem, the seller isn’t responsible for fixing it.

2. Listen to your Gut – and your Agent

   When you are in the middle of negotiations with a seller and you get a bad feeling in the pit of your stomach – or you get advice from your agent – indicating that something is wrong, you should listen. Don’t be afraid to walk away from a deal, especially if your agent advises you to do so.

   If you’ve already made negotiations, don’t want to make any more trades, and the seller won’t budge, sometimes walking away is the best decision to make. It won’t be easy because negotiating is hard and draining, But once those feelings of frustration pass, you’ll be better at negotiating and you’ll realize that you know how to do this.

3. Ask for Fewer Concessions

   Home buyers have to cover many additional costs at a mortgage settlement, such as closing costs for taxes, lender’s fees, and title company fees. Depending on your location, the closing costs will vary, but you can expect to pay between 3% and 4% of the home’s selling price. The seller pays an additional 1% to 3%. (You can use the closing cost calculator on our site to get an estimate of what your closing costs might be.)

   You have the option to ask the seller for concessions when you make your initial offer. This may come in the form of a cash settlement to help you offset your share of the closing costs, but this may not be feasible if the seller has received multiple offers on the property.

   Requesting concessions will ultimately lower the seller’s net proceeds from the sale. The seller may make a counteroffer that removes the concessions, which ends up putting cash back in the seller’s pocket and can improve your bid.

Are you interested in a special place of residence in the City of Alexandria? Get in touch with me. 

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