Friday, August 29, 2008

Las Vegas Home Buyers: Accept, Reject, Counter????

Last week we covered what happens after you make an offer. Now, I want to talk a little more in depth about what accept, reject, and counter mean to you in the offer process.

Remember, a seller will receive your offer and can either accept, reject, or make a counter offer.

Well, this is pretty simple. Right? Usually, it is. Accept means the seller has accepted your offer and you now have an agreement (Congratulations!). Unless, you are dealing with a short sale.

In a short sale, the seller's acceptance only means the offer will now be presented to the lender. So, no agreement. Now, you have to wait for an acceptance from the bank (which can take up to 90 days). The bank may or may not accept your offer.

This is straight forward. The seller has rejected your offer and you are now free to make an offer on another property. Did you low ball your first offer, regret it, and now want to try again. Yes, you can make another offer on the same property.

Counter Offer
With a counter offer the seller is basically saying, yes, I do like some of the terms in your offer, but what I propose is ... (price change, terms change, etc.).

You are now free to take the seller's counter and accept, reject, or counter.

Highest and Best Offer
What? I know, I said the seller can either accept, reject, or counter. Well, in multiple offer situations (which happens frequently in today's market) a seller can also put out a highest and best offer call.

Essentially, the seller is saying, hey there are a lot of you that want this property, now, send me your highest and best offer so I can evaluate all and see who is really serious.

Do you have to change your original offer? No, if that was your highest and best offer then leave it.

This pretty much covers the offer process. I do want to stress one thing. Make sure you read every piece of paper you are signing during this process. If you don't understand anything ask your real estate agent. If it is a legal or financial matter call your attorney or financial advisor.

The contracts are pretty straight forward and easy to read. You must make the time to read through everything before making an offer. After all, it is your money, your home, your future.

Next time, we are going to talk about escrow and title companies.

Other posts in this series that might interest you:
Making an Offer on a Las Vegas Home

What Should YOU Offer?

Made Your Offer, Now What?

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