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A counteroffer will test your negotiating skills Ask your Realtor exactly why your offer was rejected If you don t ask the question, you won t know the answer Perhaps the vendor has discovered something about you in the course of the evaluation period that he feels he can use to leverage concessions from you Perhaps the vendor knows a better offer than yours is in the offing and wants to see how far you re willing to go to secure the property It helps to be able to provide an argument for the competitiveness of your offer And whatever the circumstances of the counteroffer, be candid but professional as you hammer out a deal that satisfies both you and the vendor
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Buying at court
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Properties that are being sold by order of a court are not your typical purchases Typically, the vendor will be a lender, and the sale will occur on an as is, where is basis Although you may have some room for negotiation depending on how quickly the lender wants to recoup its cash, the lender typically has obligations to meet and low-ball deals face hurdles from the court, which will typically act in the best interests of the lender as the aggrieved party Negotiating a workable offer for a property being sold through the courts will involve determining what the lender is willing to accept, often by reviewing previous offers on the property, then making an educated guess about what s possible A trial offer may be in order to see how desperate the vendor is; your agent may be able to glean clues from the vendor or the vendor s agent as to what s possible A discount is always possible, however, given that the property is being sold as is, where is You never know what state you re going to receive it in, and you have to be prepared An accepted offer doesn t mean the negotiating is over, however Because the offer is published at court, and the court is obliged to get the best possible deal for the property, a competing bid is possible even at the last minute, prompting a courtroom showdown It pays, therefore, to have counteroffers ready till the last minute, written and in hand, to trump what any other bidder might offer
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Part III: Selecting Properties: Where to Look, What to Watch For
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When there s a need to counteroffer, and price is an issue, don t immediately counteroffer a large price increase unless you know that it is in line with the vendor s expectations Small price increases that become smaller as you approach the maximum price you re willing to pay may help wear down the other agent and seller from who won t want to waste time haggling Of course, just beware that you don t lose the sale by frustrating the life out of the vendor You may be able to divert attention from a lower price than the vendor might be willing to accept by focusing negotiations around issues like chattels (something we discuss in the section of this chapter, Tallying the costs ) and closing date
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Dotting i s, Crossing t s: Financial and Legal Paperwork
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Closing can be within a few days of making an offer for a residential property or several months away for a complex transaction Various changes may have taken place in the market or in financing conditions since the sale, but now s the time to get your papers in order and become an owner
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Wading through the legalese
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Your advisers should be able to help you wade through the legalese on the various documents, but here are a few tips that will help you prepare The most important document is the offer to purchase, as it will become the sale agreement if your offer is accepted It sets out the terms and conditions between the parties and will become legally binding on the satisfaction of any subject clauses All contracts must be in writing to have legal effect Although you may make verbal agreements, always make sure all agreements relating to the purchase are set down in the offer to purchase, and ultimately the sale agreement That includes any withdrawal of your offer, which you have a right to do at any point prior to acceptance But remember, if your offer has been accepted and signed prior to receipt of your withdrawal, a binding contract has occurred
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