#1 Michigan Flat Fee MLS &
Realtor.com Direct Listing Service

List Direct. Better Pricing,
Better Service,
Better Results, Period
Phone: 888-909-LIST(5478)
Call/Text: 734-649-4903
Fax: 866-520-4942
490 Hunters Crest, Saline, MI 48176
Licensed in Michigan #6505330456
Client Login

I have an offer, now what?

Limited service listings:  please read here

Most buyer's expect to be countered so why let them down? Seriously, it is rare to make a counter offer and have the buyer just walk. Most buyers expect to be countered. Usually the offer / counter offer will go back and forth a few times until you can either come to terms or not come to terms.

It's a poker game trying to determine how far up we can get the buyer but in the end it has to be a win-win for both parties so keep that in mind.

HOW TO MAKE THE COUNTER OFFER

  • Typically, there is no counter offer form. You simply make changes to the offer. WHEN YOU MAKE ANY CHANGE TO AN OFFER IT BECOMES A COUNTER OFFER. REMEMBER THAT PLEASE!
  • Draw a line through things you disagree with, make the change you desire (counter offer) then initial that change.
  • Initial the bottom of each page of the offer form.
  • Sign and date the last page of the offer.
  • At the end of the offer or where there is space put a time period for your counter offer, typically 2 days. Something like, "This counter offer is good through...."  This way your counter offer is not hanging out there and it protects you in case another offer comes in.
     

WHICH ITEMS ARE GENERALLY WORTH COUNTERING?

  1. Price: Again, draw a line through the price, put in the price you're countering then initial the change.
  2. Occupancy: Many times the buyer will request occupancy at closing. If you want to remain in the home after closing for a short period put that period in there. If you remain in the home after closing for say 10 days you become a "Tenant" and will typically be obligated to pay rent. The rental amount is whatever the buyer's mortgage payment is divided by 30 days to arrive at a daily rate, this is known as "1/30th PITI (principal, interest, taxes & insurance or tier total payment).
  3. Pre approval contingency: This is a big one as far as I am concerned. Most offers will contain a clause telling us when the buyer will be pre approved. Many times this pre approval is 30 days which is a long time to tie up your home in case something goes wrong! It should be 10-15 days. NOTE, MOST PRE APPROVALS ARE ABOUT AS GOOD AS TOILET PAPER SO BE AWARE! ALSO, MOST CONTRACTS DO NOT DEFINE PRE APPROVAL, THIS COULD MEAN ANYTHING, PRE APPROVED ON CREDIT, PRE APPROVED WHEN THE FINAL APPROVAL IS DONE WHICH IS NOT UNTIL THE APPRAISAL IS DONE JUST BEFORE CLOSING!
  4. So, be aware and hang tough on approvals. The last thing you needs as a seller is to wake up with a "Denial" a week before closing. You just lost 5 weeks of on market time when the buyer may not have had a strong (real) approval in the first place!

A WORD ON PRE APPROVALS / PRE QUALIFICATIONS: Most offers have a pre approval time period of 30 to 40 days. This means your home is "Off the market, pending" because there is a signed offer. Therefore, if something goes wrong with the buyer's mortgage approval during that time frame you have essentially lost that "On market" time.  It is wise to verify the "Mortgage approval" is actually a good one and not just toilet paper... I've seen too many bogus pre approvals...

Here is a clause I like to insert in the offer from (somewhere under additional conditions).  

 (I am not an attorney, have your attorney review this clause!) 

"Buyer agrees to provide a full Credit Approval" within 15 days of acceptance of this offer. Credit approval means the lender has reviewed all income, bank statements, tax returns and other financial information and has approved the buyer.    

Now, granted, this may be a little tough but it takes the risk out for sure!

This may eliminate approval issues as the file progresses. The only thing remaining for the lender to review would be the appraisal.

 

  1. The buyer will almost always hire an inspector. You should be contacted by the buyer's agent to schedule an inspection on your home. The inspection generally lasts 3-4 hours. While it is your right to be there as owner it would be uncomfortable and few owners are there. However, it is not a bad idea to show up at the end and meet them outside to address any initial concerns if you wish.
  2. Appraisal is next.  Assuming the inspection goes ok then the buyer's mortgage company will hire the appraiser to appraise your home. This may take a week or so after the inspection.
  3. Title insurance needs to be ordered. Although you as seller may have title, you have to provide "Clear Title" for the purchaser.  Title insurance confirms you are the owner and there are no other liens against the home. Title insurance is a set rate per thousand by Michigan Law.  We can order it for you or you can choose a company you wish. Many times the buyer's agent will order title for the buyer. This is a separate order for the buyer only. We can still choose any title company you wish and do not need to order it from the same company.
  4. How much can I expect to walk away with or what are my net proceeds?  Here is a great calculator you can use for just that! See http://www.libertytitle.com/sellers-net-calculator/
  5. After the appraisal is done it should be clear sailing to closing.
  6. You'll need to order a mortgage payoff if you owe on your home and a final water bill.

  7. The buyer's mortgage company gets all of their information and costs to the title company. Generally, this is not done until a day or two prior to the closing date.
  8. The Closing:  The title company acts like a big pot. Everyone dumps their stuff in the pot and the title company divides it up and produces a closing statement commonly referred to as a HUD-1.  The closing statement is generally not available until a day or so prior to closing because the buyer's mortgage company has to get their numbers to the title company first.
  9. You should be paid at closing. You can have the title company issue you a check or you can have it wired to your bank account.

I hope this helps explain the process.

Jeff Kermath

Ada For Sale By Owner | Adrian For Sale By Owner | Albion For Sale By Owner | Algonac For Sale By Owner | Allegan For Sale By Owner | Allen Park For Sale By Owner | Allendale For Sale By Owner | Alma For Sale By Owner | Alpena For Sale By Owner | Ann Arbor For Sale By Owner | Auburn Hills For Sale By Owner | Bad Axe For Sale By Owner | Battle Creek For Sale By Owner | Bay City For Sale By Owner | Belding For Sale By Owner | Bellaire For Sale By Owner | Belleville For Sale By Owner | Benton Harbor For Sale By Owner | Berkley For Sale By Owner | Berrien Springs For Sale By Owner | Big Rapids For Sale By Owner | Birch Run For Sale By Owner | Birmingham For Sale By Owner | Bloomfield Hills For Sale By Owner | Boyne City For Sale By Owner | Brighton For Sale By Owner | Brooklyn For Sale By Owner | Buchanan For Sale By Owner | Burton For Sale By Owner | Byron Center For Sale By Owner | Cadillac For Sale By Owner | Caledonia For Sale By Owner | Calumet For Sale By Owner | Canton For Sale By Owner | Caro For Sale By Owner | Cass City For Sale By Owner | Cassopolis For Sale By Owner | Cedar Springs For Sale By Owner | Center Line For Sale By Owner | Charlevoix For Sale By Owner | Charlotte For Sale By Owner | Cheboygan For Sale By Owner | Chelsea For Sale By Owner | Chesaning For Sale By Owner | Clare For Sale By Owner | Clarkston For Sale By Owner | Clawson For Sale By Owner | Clinton Township For Sale By Owner | Clio For Sale By Owner | Coldwater For Sale By Owner | Coloma For Sale By Owner | Commerce Township For Sale By Owner | Comstock Park For Sale By Owner | Coopersville For Sale By Owner | Davison For Sale By Owner | Dearborn For Sale By Owner | Dearborn Heights For Sale By Owner | Delton For Sale By Owner | Detroit For Sale By Owner | Dewitt For Sale By Owner | Dexter For Sale By Owner | Dowagiac For Sale By Owner | Durand For Sale By Owner | East Lansing For Sale By Owner | East Tawas For Sale By Owner | Eastpointe For Sale By Owner | Eaton Rapids For Sale By Owner | Edwardsburg For Sale By Owner | Escanaba For Sale By Owner | Essexville For Sale By Owner | Farmington For Sale By Owner | Fenton For Sale By Owner | Ferndale For Sale By Owner | Flat Rock For Sale By Owner | Flint For Sale By Owner | Flushing For Sale By Owner | Fort Gratiot For Sale By Owner | Fowlerville For Sale By Owner | Frankenmuth For Sale By Owner | Franklin For Sale By Owner | Fraser For Sale By Owner | Freeland For Sale By Owner | Fremont For Sale By Owner | Garden City For Sale By Owner | Gaylord For Sale By Owner | Gladwin For Sale By Owner | Grand Blanc For Sale By Owner | Grand Haven For Sale By Owner | Grand Ledge For Sale By Owner | Grand Rapids For Sale By Owner | Grandville For Sale By Owner | Grayling For Sale By Owner | Greenville For Sale By Owner | Grosse Ile For Sale By Owner | Grosse Pointe For Sale By Owner | Hamtramck For Sale By Owner | Hancock For Sale By Owner | Harbor Springs For Sale By Owner | Harper Woods For Sale By Owner | Harrison For Sale By Owner | Harrison Township For Sale By Owner | Hart For Sale By Owner | Haslett For Sale By Owner | Hastings For Sale By Owner | Hazel Park For Sale By Owner | Highland For Sale By Owner | Highland Park For Sale By Owner | Hillsdale For Sale By Owner | Holland For Sale By Owner | Holly For Sale By Owner | Holt For Sale By Owner | Houghton For Sale By Owner | Houghton Lake For Sale By Owner | Howell For Sale By Owner | Hudsonville For Sale By Owner | Imlay City For Sale By Owner | Inkster For Sale By Owner | Ionia For Sale By Owner | Iron Mountain For Sale By Owner | Iron River For Sale By Owner | Ironwood For Sale By Owner | Ishpeming For Sale By Owner | Jackson For Sale By Owner | Jenison For Sale By Owner | Jonesville For Sale By Owner | Kalamazoo For Sale By Owner | Kalkaska For Sale By Owner | Lake City For Sale By Owner | Lake Orion For Sale By Owner | Lambertville For Sale By Owner | Lanse For Sale By Owner | Lansing For Sale By Owner | Lapeer For Sale By Owner | Lincoln Park For Sale By Owner | Linden For Sale By Owner | Livonia For Sale By Owner | Lowell For Sale By Owner | Ludington For Sale By Owner | Macomb For Sale By Owner | Madison Heights For Sale By Owner | Manistee For Sale By Owner | Manistique For Sale By Owner | Marine City For Sale By Owner | Marlette For Sale By Owner | Marquette For Sale By Owner | Marshall For Sale By Owner | Marysville For Sale By Owner | Mason For Sale By Owner | Melvindale For Sale By Owner | Menominee For Sale By Owner | Metamora For Sale By Owner | Middleville For Sale By Owner | Midland For Sale By Owner | Milan For Sale By Owner | Milford For Sale By Owner | Millington For Sale By Owner | Monroe For Sale By Owner | Mount Clemens For Sale By Owner | Mount Morris For Sale By Owner | Mount Pleasant For Sale By Owner | Munising For Sale By Owner | Muskegon For Sale By Owner | New Baltimore For Sale By Owner | Newberry Niles For Sale By Owner | Northville For Sale By Owner | Novi For Sale By Owner | Oak Park For Sale By Owner | Okemos For Sale By Owner | Ontonagon For Sale By Owner | Ortonville For Sale By Owner | Oscoda For Sale By Owner | Otsego For Sale By Owner | Owosso For Sale By Owner | Oxford For Sale By Owner | Paw Paw For Sale By Owner | Petoskey For Sale By Owner | Pigeon For Sale By Owner | Pinckney For Sale By Owner | Pinconning For Sale By Owner | Plainwell For Sale By Owner | Plymouth For Sale By Owner | Pontiac For Sale By Owner | Redford For Sale By Owner | Reed City For Sale By Owner | Richland For Sale By Owner | Richmond For Sale By Owner | Rochester For Sale By Owner | Rockford For Sale By Owner | Rogers City For Sale By Owner | Romeo For Sale By Owner | Romulus For Sale By Owner | Roscommon For Sale By Owner | Roseville For Sale By Owner | Royal Oak For Sale By Owner | Saginaw For Sale By Owner | Saint Clair For Sale By Owner | Saint Clair Shores For Sale By Owner | Saint Ignace For Sale By Owner | Saint Johns For Sale By Owner | Saint Joseph For Sale By Owner | Saline For Sale By Owner | Sandusky For Sale By Owner | Sanford For Sale By Owner | Saugatuck For Sale By Owner | Sault Sainte Marie For Sale By Owner | South Haven For Sale By Owner | South Lyon For Sale By Owner | Southfield For Sale By Owner | Southgate For Sale By Owner | Sparta For Sale By Owner | Spring Lake For Sale By Owner | Standish For Sale By Owner | Sterling Heights For Sale By Owner | Stevensville For Sale By Owner | Sturgis For Sale By Owner | Suttons Bay For Sale By Owner | Swartz For Sale By Owner | Creek For Sale By Owner | Tawas City For Sale By Owner | Taylor For Sale By Owner | Tecumseh For Sale By Owner | Temperance For Sale By Owner | Three Rivers For Sale By Owner | Traverse City For Sale By Owner | Trenton For Sale By Owner | Troy For Sale By Owner | Utica For Sale By Owner | Vassar For Sale By Owner | Vicksburg For Sale By Owner | Walled Lake For Sale By Owner | Warren For Sale By Owner | Washington For Sale By Owner | Waterford For Sale By Owner | Wayland For Sale By Owner | Wayne For Sale By Owner | West Bloomfield For Sale By Owner | West Branch For Sale By Owner | West Olive For Sale By Owner | Westland For Sale By Owner | White Cloud For Sale By Owner | White Lake For Sale By Owner | Whitehall For Sale By Owner | Whitmore Lake For Sale By Owner | Williamston For Sale By Owner | Wixom For Sale By Owner | Wyandotte For Sale By Owner | Ypsilanti For Sale By Owner | Zeeland For Sale By Owner | Alcona For Sale By Owner | Alger For Sale By Owner | Allegan For Sale By Owner | Alpena For Sale By Owner | Antrim For Sale By Owner | Arenac For Sale By Owner | Baraga For Sale By Owner | Barry For Sale By Owner | Bay For Sale By Owner | Benzie For Sale By Owner | Berrien For Sale By Owner | Branch For Sale By Owner | Calhoun For Sale By Owner | Cass For Sale By Owner | Charlevoix For Sale By Owner | Cheboygan For Sale By Owner | Chippewa For Sale By Owner | Clare Clinton For Sale By Owner | Crawford For Sale By Owner | Delta For Sale By Owner | Dickinson For Sale By Owner | Eaton For Sale By Owner | Emmet For Sale By Owner | Genesee For Sale By Owner | Gladwin For Sale By Owner | Gogebic For Sale By Owner | Grand Traverse For Sale By Owner | Gratiot For Sale By Owner | Hillsdale For Sale By Owner | Houghton For Sale By Owner | Huron For Sale By Owner | Ingham For Sale By Owner | Ionia For Sale By Owner | Iosco For Sale By Owner | Iron For Sale By Owner | Isabella For Sale By Owner | Jackson For Sale By Owner | Kalamazoo For Sale By Owner | Kalkaska For Sale By Owner | Kent For Sale By Owner | Keweenaw For Sale By Owner | Lake For Sale By Owner | Lapeer For Sale By Owner | Leelanau For Sale By Owner | Lenawee For Sale By Owner | Livingston For Sale By Owner | Luce For Sale By Owner | Mackinac For Sale By Owner | Macomb For Sale By Owner | Manistee For Sale By Owner | Marquette For Sale By Owner | Mason For Sale By Owner | Mecosta For Sale By Owner | Menominee For Sale By Owner | Midland For Sale By Owner | Missaukee For Sale By Owner | Monroe For Sale By Owner | Montcalm For Sale By Owner | Montmorency For Sale By Owner | Muskegon For Sale By Owner | Newaygo For Sale By Owner | Oakland For Sale By Owner | Oceana For Sale By Owner | Ogemaw For Sale By Owner | Ontonagon For Sale By Owner | Osceola For Sale By Owner | Oscoda For Sale By Owner | Otsego For Sale By Owner | Ottawa For Sale By Owner | Presque Isle For Sale By Owner | Roscommon For Sale By Owner | Saginaw For Sale By Owner | Sanilac For Sale By Owner | Schoolcraft For Sale By Owner | Shiawassee For Sale By Owner | St Clair For Sale By Owner | St Joseph For Sale By Owner | Tuscola For Sale By Owner | Van Buren For Sale By Owner | Washtenaw For Sale By Owner | Wayne For Sale By Owner | Wexford For Sale By Owner |