(CHEROKEE LAKE REALTY WRITES A WEEKLY COLUMN FOR THE GRAINGER COUNTY JOURNAL NEWSPAPER. THIS WAS A RECENT QUESTION ASKED BY A READER.)
Well… you can turn it down or do what is called in real estate a Counter Offer. Now, there are several parts of the offer you need to review, because price may not be all that you consider unacceptable. In the offer, which in Tennessee is referred to as the Purchase and Sale Agreement, is there anything else you are happy or not happy with? These are called contingencies.
For example, do they want to make the offer contingent on your home’s value appraising for what they offered? How about inspections. Do they want to do a home inspection, termite inspection, septic inspection, water inspection, foundation inspection? Do they want a survey done and you pay for it? Is the offer contingent on them being able to have financing approved? Do they want to close too soon, not allowing you enough time to pack and move out, or close too far down the road? Do they need to sell their home before they buy yours? Every offer is unique. You could receive three simultaneous offers from three different potential buyers, and they will all be different. Any of the previously mentioned Contingencies, and there can be a few more, may not be desirable for you even if they are offering you what you want monetarily. Or their offer may be a bit lower than what you want, but it is what we call a clean deal… Cash, no inspections, no appraisals, and they’re flexible with a closing date. So, you see, the money you receive, as important as that is, will not be the only thing to consider. You could receive a full-price offer, tie up your home for a few months, and then the buyer won’t close because of one of the contingencies that’s in the Purchase and Sale Agreement that allows them to walk.
What I recommend is for you to look at all the details of the offer you have received. Weigh them out. Some contingencies you may be ok with, some can be a deal breaker. Then do a Counter Offer outlining what you would like to negotiate. Your real estate agent can assist you with this. Real estate negotiations can be tough. In some circles it’s considered an art form. You have to ask and give and do it in such a way that everyone wins. Not easy. Hopefully, you have an experienced real estate agent that can handle this for you.
