Making an Offer on a Home in
Making an Offer on a Home Central Indiana: Negotiation, Contract, Seller, Terms, Acceptance, Counter Offer, Rejection, Response Time Limit, Home Inspection
Once we have prepared the initial contract, your VIP Realty agent will review it with you line by line. When all points are approved, it's time to make an offer and begin negotiations on the specifics of the sale with the Seller.
It is vital to review every line item before your sign the contract. Once the contract leaves your hand and is presented to the seller, you are legally bound by its terms if the seller accepts the contract without any changes.
Negotiating the Contract: Presentation and Counter Offer
The contract should stipulate how long the seller has to respond to your offer. You should allow at least 24 hours as your response time limit. Allowing too much time gives the seller the opportunity to shop other buyers.
Your agent will present the contract to the seller's agent. The seller has four options:
- The seller may accept your offer as is. The contract then becomes binding on the both parties
- The seller may reject your offer. Any rejection of even the slightest provision makes the contract non-binding
- The seller may change the terms of the contract and counter-offer the original contract. It may come back as a new document, changes to the original document, or added pages to the original contract.
- The buyer can accept the seller's counter-offer or walk away from the deal entirely and receive their earnest money back
- You, the buyer, have the right to counter the seller's counter-offer. You will simply change the terms of the seller's counteroffer as advised by your agent. Your agent will go back to the seller with your counter-counter-offer and seller repeats the process over again, until a mutual agreement is reached. Most offers are reached on the 2nd or 3rd round of negotiations.
- The seller may entertain a second offer. In a seller's market, it is common for the seller to receive several offers.
- Of course, the seller will take the best offer which may include a better price, lesser terms in the sales contract, larger earnest money deposit, or that the contract shows greater financial qualification such as a pre-approved mortgage application.
- There may be several contract offers on the table, and the seller may try to play one buyer against the other. Don't accept any oral messages. Make sure the seller responds to your contract with a formal written proposal.
Once both parties agree to the terms and sale price stated in the contract, the terms of the contract are binding on both parties. If you change your mind for any reason and breach the terms of the contract, the seller has the right to declare the contract null and void and you may also be liable for any other financial damage suffered by the seller and the seller's agent.
Great news! The Seller has accepted your offer! Find out what comes next at After Your Offer is Accepted.
For more information about how VIP Realty can help you buy a home in Central Indiana, call Tammy Bookout at (317) 345 - 8269 or toll-free at 888-VIP-0002 (888-847-0002), or send Tammy an e-mail, or submit the Request for Information form below.