Negotiation

So, we've made an offer to purchase, now we are in negotiations, assuming the seller countered your offer rather than accepting it as is. This is where your realtor is of great value. The buyer doesn't have to go through this process alone. Your realtor will work with the seller's real estate agent. The seller will say a price and terms to the buyer. I'm keeping it simple here. I really mean the seller's agent and the buyer's agent. The agent then contacts her client for an answer. Legally, a counter is a rejection of the buyer's offer. Legally the buyer can now walk away. But in practice, most buyer's counter back. If buyer and seller come to terms, a legal contract is signed. This is the offer to purchase. In Massachusetts, this offer becomes the binding agreement if, down the road, the buyer and seller (via their attorney) can't come to an understanding on the purchase and sale agreement. That's why I recommend to my clients that they get their real estate attorney involved in this process before a home is found. That way the attorney can be working on the purchase and sale agreement at the same time the finance agent is arranging financing and the same time the buyer is looking for a home to purchase.

If a buyer does all these things in advance, they are far ahead of the game. Many sellers want buyers to be pre-approved financially before the seller will even allow the buyer to view their home. I have lived in many states in the United States. Never before have I seen sellers decline to allow buyers to enter their homes. But in Massachusetts, this is sometimes the case, so be prepared. Get your financing and attorney in place at the same time you are looking for property. I am not an attorney. Always seek expert help if you don't understand legal issues.