Jeff’s Carlsbad Blog for First Time Home Buyers


Buyers – After the Offer Comes the Negotiations

Posted in Offers,Realtor's Job by Jeff Dowler on December 17, 2007

shaking-hand-photo.jpgshaking-hand-photo.jpgshaking-hand-photo.jpgAfter you complete the offer paperwork it will be forwarded to the listing agent and seller for their consideration. Hopefully you will have made an offer that the seller will respond to, which begins the negotiations.

Read Part 1 on How to Make an Offer

The negotiations will take place between buyer and seller, with their respective agents acting as intermediaries. Since the agents are neutral parties, this generally allows negotiations to proceed in a less emotional manner.

 

The seller will respond to your offer, hopefully within a reasonable period (that may vary depending on how much time was given, whether the seller is local or not, and other factors). Here in California the seller will respond in writing using a Counter Offer form (other practices may occur in other states, including counter offers in verbal form).  This form, signed by the seller, will lay out the seller’s response to your offer, i.e., a revised purchase price, different closing date, and any other factors the seller wishes to propose as a new offer.

The Counter Offer Form (numbered consecutively beginning at #1) may give you a deadline date to respond, or may revert to the default which is 3 days in California.

You may accept the counter offer (which incorporates items from the original offer plus the revisions from the seller, thus creating a new offer), or you may accept it AND submit a counter offer of your own, with other revised terms (e.g., price). You can also choose to not respond at all and discontinue the process.

The negotiations go back and forth until the parties agree on the terms and conditions, or negotiations break down and one or the other parties will not negotiate further. Once agreement is reached, the paperwork is signed to acknowledge this, and al parties receive a copy.

Thus begins the critical due diligence period.

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