Page 14 - New Agent Real Estate training book

Negotiating the offer

If the seller decides to accept our first offer without changes, we will automatically have a
contract. If the seller decides to counter our offer, they are essentially rejecting the offer and making us
a new offer. At this point, we now have the choice to reject, accept, or counter the seller’s counter
offer. This negotiating process continues back-in-forth until both parties can agree on all items or both
parties fail to come to terms. If cannot come to terms with a seller, at that point we may want to
consider moving onto another property. Sometimes the best negotiating strategy is being willing to
walk away.

Picking a Price
You need to decide on a price you’d like to offer, which I can help with by providing the most
recent market comps and activity. In the event we find ourselves in a situation where multiple offers
have been made on a property, we will likely be given just one opportunity to submit our best and final
offer.

Cash vs Financing

If we are offering cash, then we will need to obtain a proof of funds letter showing the seller we
have the ability to follow through with our purchase. If we are looking to finance, we will need a
prequalification letter from a lender. Most sellers and brokers require these documents before they will
seriously consider an offer. If we are financing, the lender will also want our offer to be contingent on
an appraisal.

Earnest Money

While not required in South Carolina; earnest money shows intent when negotiating an offer.
Most sellers and brokers will insist on earnest money, since we are asking them to remove their home
from the market while waiting for closing. Typically $1,000 would be sufficient for an offer, a personal
or bank check made payable to my brokerage [ Century 21 Boling] will do. If we are negotiating on a
very expensive property, earnest money amounts can be larger. Any amounts over $5,000 will need to
be certified funds. If we are looking for a quick closing, I also recommend getting certified earnest
money.
My office will hold your check, and if our offer is accepted, your earnest money will be
deposited into our escrow account and held until closing. Earnest money will be credited toward your
closing costs. Be aware, backing out of a contract without legitimate cause or failing to perform can put
you at risk of forfeiting your earnest money.

Closing Date

We will need to pick a closing date, or the date you would like to take possession of the
property. With cash offers it’s reasonable to close in less than 30 days; however, if you will be obtaining
financing we will probably need around 30-45 days depending on your lender. The date will need to be
acceptable to both parties, and it needs to be a realistic timeframe for any lenders and attorneys.

Inspections

We need to address the inspection clause in the contract. A licensed home inspector will charge
between $400-$600 depending on the inspector and which option you choose. I usually recommend my
clients ask for the standard inspection clause, which provides you the right but not the obligation to