When you are wanting to buy a home, you may be up against other people wanting to buy the same home.
There could be many other people poised and ready to offer on the home you are offering on.
Of course, this type of real estate market is most commonly known as a Seller’s Market.
In real estate a seller’s market indicates a high buyer demand. Demand that is causing the real estate inventory to be less than adequate, where homes are selling quickly with multiple offers.
In most circumstances, when speaking about multiple offers, it’s worth a seller’s time to have their agent counter the “serious” offers in counter offering form.
Counters aren’t only for multiple offers
Of course, counters are also used to clean up terms related to the seller’s desires and needs.
- Maybe the home seller wants to locate a home to buy and close that at the same time as the home they are selling?
- Maybe the owner wants to occupy the home they are selling for two weeks after it’s sold?
- It could be the home seller wants to leave the swing set in the back yard?
- Realistically, a seller’s counter offer could include strange and crazy items too…
These items are best represented by counter offers from the seller to those buyers who expressed written interest.
But, if they are…
If some of the offers received are considered to be ridiculous to the home seller, maybe written for a lot less than the other offers which were received, they could be “rejected” without countering.
If the offers received are considered worthy but differing in amounts, financing, and expected time frames, those are worth the seller’s time to counter.
One of the most obvious reasons a seasoned agent will reject this would be due to buyers potentially writing multiple offers.
While the seller’s agent is taking the time to counter, another seller may accept the buyer’s “other offer”. Ethical and Legal, as it relates to a buyer writing multiple offers isn’t the point. The point being, buyer’s writing multiple offers at the same time is done more often than it should and creates an issue all of it’s own.
Worth the risk!
However, in most cases, the taking the time to counter results are worth the risk with the “buyer’s multiple offer” scenario for the home seller.
Not only does issuing multiple counters put all buyers on high alert, it brings their agents to the forefront in the buyer representation process.
Basically, it allows them to focus and give their clients insight from their years of knowledge and experience.
- Some will say to their clients to stay where their offer currently is.
- Some will have them make the terms of the financing better.
- Some agents will have the advice of increasing the amount of the offer.
- In other cases, the buyers agent may respond with a more attractive offer for the seller, removing contractual contingencies or the requirement the property must pass apprasial.
With all things being equal =
There are literally a thousand ways to skin a counter offer. The best ways are going to be by seeking wise council with your hired Real estate agent.
However, as a rule of thumb, there is much more sacrificed by not countering than by issuing counters in most real estate offering scenarios.
Let your real estate agent be your guide within the process. Seek out articles which I write on SCVblog and within the SCVnest System where we are representing Santa Clarita real estate buyers and sellers.