10 Steps in Buying a Home: Part 6-Negotiating Towards Ratification
This is the point in the 10 Steps in Buying a Home where you really find out what your true commitment is to buying this house! Do you want this house more then the other buyers who have submitted offers?
There are several terms and conditions written into your offer in addition to price. The seller and their agent consider the terms of all offers and weighs them with the price to find the very best offer. Often in a multiple offer situation they might decide to either accept the best offer with the most desirable terms or counter one or more of the offers to work towards getting the best price with the best terms in one ideal offer. This means you may be working with your agent to negotiate the best possible terms and price you can offer.
Hopefully your offer is at the top of the heap and in consideration.
What Should I expect in the next Phase Of Buying a Home?
Here are the options:
- Your offer is accepted without a counter offer – YAH!!!
- Your offer is the best but sellers counter you to change the terms or price- Still YAH!!!
- Seller offers counters to 1 or more other buyers – Still in the Game!
- Your offer is not in the running – All hope is not lost. Other buyers could back out
#1 is, of course, the best option. The sellers will sign your offer and return to your agent and BOOM – you’re in contract!
#2 If the next best option. If the sellers are asking you to raise your price you must consider what you are willing to pay for the house. Will your loan and down payment cover the additional funds? Is there a possibility that the house will not appraise at the new price? This is when you are really tested on how much you want this house and if you will be devastated if you can’t move forward.
#3. There are many ways the sellers can counter your offer. Your agent can review all the options and help you determine the best route to take. You can either reject, accept or counter their counter offer. Negotiating towards the best terms for buyer and seller is an art and takes careful consideration.
Hope is Not Completely Lost if your Offer is not Considered or Accepted
#4 Hope is not always lost if your offer is not accepted or considered. Transactions do fall apart and if you have become attached to this home your agent can track the progress of the transaction and opportunities for another chance.
Let’s just say that all the start have aligned in your favor, you are the best and chosen offer. Congratulations! Your offer has been accepted! Once you have a fully ratified contract, that is one that has been signed by all parties to the contract, the escrow clock starts ticking. You are in contract…now what? Stay tuned for Step 7 in the 10 steps: Inspection Contingencies.
Reminder of the 10 Steps in Buying a Home:
- Establish A Budget
- Engage Your Marin Modern/San Francisco Modern Realtor
- Obtain Loan Pre-Approval
- Preview Homes
- The Offer
- Negotiate towards ratification
- Inspection Contingency
- Appraisal/Loan Contingency
- Sign/Fund/Close or Record
- Collect the Keys and Enjoy!
Now you are ready for Step 7: Inspection Contingency