Got R-E-O Countered?

You submit an offer and you get countered? What does it mean?

Some buyers mistake a counter for a turn down or that it is etched in stone.  It is not.  It is an opportunity to open up the negotiations or it can be.

• Don't mistake a counter as a turn down
• Don't mistake a counter as an opportunity to go under what you originally offered!
• Don't mistake a counter as something you can sit on for several days - act on it if you want it!
• Don't over look what the bank is countering... read carefully

1. If you want something - ask for it BEFORE you sign the contract - most effective if you ask you it during the negotiating period. Be reasonable in what you ask for.
2. Keep in mind: Low ball offers just might get less than none consideration.  Low balls stand out!! Most of the time the bank will never see them and you will be REJECTED in record time.

Example: If you ask for less than the asking price, plus you want 6% credit back for closing and you want termite inspection and you want termite section 1 repairs, and you want a 17 day inspection contingency and you want.... And you want...

• Take a look at what the counter is saying. Read carefully and be reasonable about what you are asking for.

Hint:  The bank will usually counter an offer even if it for the asking price.  They seem to find something on the original offer to counter so that it "fits" into what they want and into how they do business.  So don't take it as a turn down. 

• If you are bold enough to ask for a credit back be bold enough to understand that the bank will more than likely counter it if it is not a full offer and then ask for the counter.  In other words offer that percentage over the asking price and then ask the credit back.  Do not ask for a lower purchase price PLUS the % credit back!  If you do, it will surely be countered.
• If you want the bank to pay for Termite Inspection and / OR Termite Section 1 repairs... say your prayers before you make the offer.  The reason I say that is because the bank will usually counter any cost to them for inspections and for repairs.  The bank is selling the property AS IS  WHERE IS so they are usually not up to paying for any repairs.  See  AS IS, Where Is... Know WHAT IS before you offer!

Whereas it does not hurt to ask, just understand that it may be countered. 

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Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

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