Stage 5: Negotiate Offers
Success! All of your preparation and hard work has paid off and one or more buyer is interested in purchasing your property. If you’re lucky, you’ll receive more than one offer – giving you a bit more leverage than you’d have if you receive a single offer.
Consider offer(s): It would be fantastic if the first offer you received on your home was a full-priced cash offer with no contingencies. Unfortunately you probably won’t be that lucky. But you might receive multiple offers,which gives you the luxury of choice. It’s important to review each offer carefully with your agent. You need to understand all details of the offer. Price isn’t the only consideration. Closing dates, financing contingencies, and closing cost credits are variables that can make a full-price offer less enticing and a lowball offer look promising.
Make Counter Offers: Your agent will guide you through the process of responding to the offer(s) you receive. Any and all aspects of an offer are negotiable. Common points of negotiation include purchase price, closing dates, earnest money amount, cashback at closing, home warranties, and even the inclusion / exclusion of personal property included in the offer.
Accept an Offer: Once you’ve come to terms with a buyer and all the details of the offer have been negotiated and agreed upon. The buyer’s agent will make the agreed upon changes and re-submit for your signature. Once that’s done, you’ve got a fully-executed, legally-binding contract. Your agent will mark your listing as contingent in the MLS, signalling to other buyers and agents that your home is off the market.