Counter Offer By Example
When you receive an offer from a homebuyer, first of all, you need to know what to counter. When a homebuyer makes an offer, the buyer or the buyer agent usually send you a Purchase and Sales Agreement signed by the homebuyer, or sometimes a letter of intention.
Letter of intention (LOI) is an informal offer used by most investors to save time.
A Purchase and Sales Agreement is a formal offer used by most homebuyers. Purchase and Sales Agreement singed by the buyer is not a contract yet. You can either reject it by not taking any action before the offer’s expiration time or by simply writing a word or few words on the agreement indicating the offer is rejected.
You can also counter back to initiate the negotiation process. Your counter offer is called seller to buyer counter offer. And buyer can also counter back to your counter offer, which is called buyer to seller counter offer. There can be multiple counter offers. This process is actually a negotiation process.
What items you can counter offer? Followings are some important items in the Purchase and Sales Agreement, which are usually the focus of the counter offers.
· Sales price
· Earnest money deposit
· Closing cost
· Closing date
· Financing term
· Fixture requested by the buyer
· Personal property requested by the buyer
· Contingency on timeframes and repair
· Any other contingencies that favors the buyer
· The time the offer or counter offer expires
- Last edited October 15 2008
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