Q: What is a good offer?
A: A good offer depends on multiple factors: the market, the neighborhood, the seller needs and the list price. It is your agent's job to provide you with the best information on these factors to help you make a decision. Is the list price low or high compared to the market? Is your offer the only one or are there several you are up against? Are properties in general selling above or below the asking price in the neighborhood?
Q: How do you win in a multiple bid situation?
A: Primarily by understanding the strategy and motivation of the sellers. It is important to know how many other offers have been placed, the state of the market, and the goals of the seller. An offer is more than a purchase price - a good offer is drafted carefully with overall terms that will appeal to the seller.
Q: Is it beneficial to provide a personal letter or enclose photos, etc. with the offer
A: Absolutely. Sellers want to know who is buying their house. Whether you are buying from a developer or individual seller, a solid offer package with a personalized cover letter shows that you are a serious purchaser.
Q. How long will it take to know if my offer has been accepted?
A: It is preferable to allow 24 hours for the seller to respond. In some cases the seller requests more time, but usually no more than a couple days.
Q: What is the counter offer?
How does it work?
A: When you submit an offer, the seller has four choices:
1 . They can ACCEPT it as written, and you are ratified—meaning you are "in contract" to buy it.
2. They can REJECT it.
3. They can offer you a "BACK-UP" position—in the case that they have accepted another offer, this will put you in first position to ratify if the first offer cancels or falls through.
4. They can COUNTER your offer. They can counter you on the purchase price, the length of escrow, contingency periods, or any other terms. Once you receive their counter you can then 1) Accept 2) Reject or 3) Counter their counter. This can go back and forth several times until both sides come to an agreement. As soon as one party agrees to the other's counter, you are ratified.
Q: What is a Multiple Counter Offer?
A: If a seller receives more than one offer, they can counter all of them or a select few. In this scenario, the offer is not ratified when you respond to their counter. The seller has the final say, therefore you are not ratified until the seller accepts your counter.