Chicago area home buyers have a couple things in their favor. The inventory of Chicago homes for sale has improved, and mortgage interest rates have retreated from previous highs. Sellers still have the driver’s seat, but their grip on the wheel isn’t as tight. For example, during the month of March, about 42% of Chicago homes sold for less than the asking price.
Don’t throw a party just yet – about 38% of Chicago homes sold for more than the asking price. The nicest homes in popular locations can still draw multiple offers. With the market showing a mixed bag of price strength, buyers should be prepared to face counter-offers from sellers.
When you make an offer on a home, the seller might accept your offer as written. Or, the seller might reject your offer flat, without seeking negotiation. Or, the seller might reply with a counter-offer. A counter-offer shows what’s most important to the seller, and reveals where compromise may be possible. Your agent is a central part of this negotiation, and he or she will help you through this process.
Here are examples of counter-offer situations:
- Price Negotiation
- The seller may feel the offered price is too low, and counter with a higher price.
- Adjusting Terms/Contingencies
- The seller might refuse or modify a buyer’s contingency, or want to adjust the closing date.
- Competing Offers
- If the seller received multiple offers, they might instruct all buyers to submit their “best” offer for final consideration. (Don’t get caught up in a bidding war that exceeds your budget.)
- Closing Costs
- A seller might decline a buyer’s request for help with closing costs, or reduce the dollar amount of contribution.
- Appraisal Concerns
- If the appraised value comes in for less than the purchase price, the buyer and seller need to negotiate a solution. (The mortgage company won’t lend more than what the appraisal will justify.) A seller could ask the buyer to cover the difference in cash. Or, the agent(s) could show the appraiser comparable sales and ask for an adjustment. Or, the seller could reduce the asking price to match the appraisal.
- Personal property or special fixture in the home
- Personal property should be listed separately in a bill of sale. But sometimes a buyer and seller need to clarify what is staying with the house.
A counter-offer can lead to several rounds of negotiation. Be patient, stay positive, and work closely with your agent!
StartingPoint Realty – serving Chicago Area home buyers since 2004!
When you’re preparing to buy a home, get expert help from StartingPoint Realty! We proudly serve home buyers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! Contact us for your free consultation!
Ryan Gable, Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@startingpointrealty.com
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