What is the counteroffer and other aspects of negotiating?
A counteroffer is any comeback from the seller or you after the initial offer has been presented. Most contracts are arrived at through a series of offers and counteroffers. Consider counteroffer good news because it means the buyer has taken your bid seriously and believes you are close to a deal.
Before responding to the seller, talk with your broker to understand the reasons behind the counter offer – at this point you are in control. In the counteroffer price is not the only thing subject to negotiation, you can still come back to the seller changing any of the main six components of the original offer. Regardless, it is usually unnecessary to draw up an entirely new contract.
Keep in mind that you have little control of when you get the sellers response to the counter offer, so ensure you put an expiration time and date on it
Other Aspects of a deal
There are two other points to consider in the negotiation process. The home warranty and the real estate attorney
The Home Warranty: A home warranty is a type of insurance policy. It is designed to protect against the failure of certain major systems of the home for the first year. Home warranty’s sound simple in theory but they can often be problematic. There are two types of home warranties: a new home warranty for new construction and a homeowners’ warranty for a previously owned unit. Read and understand what is and is not covered in the warranty before you sign it.
The Real Estate Attorney: Hiring a real estate attorney is not a requirement. Attorneys can be helpful in complex transactions, difficult sale, if you are unfamiliar with the real estate industry or it is your first time buying a piece of property. Simple contracts, such as the transfer of ownership of a condominium, rarely require a real estate attorney. Your agent can advise you in determining whether an attorney is necessary.