Step 5 | Counteroffer | How to Buy a Home | Murrieta Ca

So you’ve submitted an offer on your dream home! And now you are waiting to find out what the seller’s response will be.  Today we are going to be talking about what to expect from the seller’s counteroffer and how to negotiate this second round. Here we go!

Hi, I’m Jessica Genung and I’m a Realtor in the Murrieta/Temecula valley with Realty One Group Southwest.  Thanks for checking out my channel.  Today I’m going to be discussing Step 5 of the home buying process.  If you would like to request a copy of my buyer roadmap, there is a link in the description below where you can download it automatically. 

Let’s get to it.  Step #5 Negotiating the Contract. 

At this point, your offer has been submitted to seller.  Will they accept your offer as-is? Sometimes, but probably not. It is RARE for a seller to accept every item in your offer exactly as it’s written.  If they do, awesome! They send it back signed, you now have an executed contract and you are ready to open escrow. 

But what is much more likely to happen is you are going to be receiving a counteroffer.  You may be wondering what items are often negotiated in the counteroffer? Price is the most obvious (and most common) but here are some other common counteroffer items. 

#1 Seller concessions: Maybe you asked for the seller to pay part of your closing costs. The seller may try to negotiate this credit down or even say they are not willing to pay any buyer closing costs at all.  Seller’s are more likely to pay some buyer closing costs if they like the OFFER PRICE and other terms in the offer package.  If you know you need closing costs, my advice is to make the seller a good offer on the PURCHASE PRICE.  You’ll get a lot more cooperation that way:) 

#2 Service Providers: It’s negotiable, but typically the seller wants to choose the TITLE and ESCROW officers they prefer.  They especially want to choose the Title Rep because it is customary that the seller pays the owner’s title insurance policy.  At the offer and counteroffer stage of a deal, most buyers and seller’s consider this a minor detail and if this is all that is up for discussion, an accepted contract and the opening of escrow is quite likely.

#3 Timelines and contingencies: The seller may counter requesting shorter timelines on the closing date and contingency removal dates.  I always give the disclaimer that every real estate transaction is unique, and of course there are exceptions where the seller may want to delay closing, but typically sellers are trying to shorten the contract timeline and contingency removal periods. Time is money. 

The sooner the buyer removes the contingencies, the greater chance the seller will be able to collect the buyer’s earnest money deposit should the buyer back out from buying the home.  A common example would be the seller counter’s requesting a 30 day close instead of  say 45, or perhaps even a 25 day close.  Requesting the physical inspection period to be 10 days instead of 17 is another common example.  Counter offers often contain requests to tighten timelines. 

#4 INCLUSIONS and EXCLUSIONS are often addressed in counter offers. What items such as appliances etc will the seller include in the home purchase?  Unless it specifically states in the MLS that an item is excluded, I typically advise my buyer clients to just ask for item in their offer: refrigerator, or washer/dryer for example.  But maybe the seller decided they want to take that item we requested to their new home.  It’s common to see something like in the seller’s counter offer.  Another common home decor item that I see occasionally in counter offers are nicer light fixtures such as a chandelier.  Maybe the seller spent $1000 on a fancy chandelier and wants to take it with them, they will want to settle that matter in the counter offer process.  Side note: I ALWAYS advise my sellers to just go ahead and replace that chandelier before we list property, so there is no confusion and so that the buyer doesn’t get attached to it and make a fuss about it. 

That wraps up Step #5 in my series describing the home buying process.  If you are considering moving to my area here in Murrieta California, we have put together a Relocation Guide to help you get acquainted to the area.  There is a link in the description below for that, and it’s available for immediate download.  As always, I love getting feed back and addressing any questions you have about So Cal real estate.  Drop me a message or a question in the comments below, I answer them all personally and normally within 24 hours.  Stay tuned for my video which I publish every week!  Till next time, bye!