When making offer, put it in writing
Q: I just made an offer on a house and the seller just wants to negotiate verbally or by email but won’t put anything in writing. It seems like he’s not serious about selling his house. What should we do? My Realtor says we should be doing this in writing.
A: Your Realtor is right. Customarily negotiations on houses are done in writing using offers and counter offers. However, a seller or buyer certainly has the right to make an offer or counter offer verbally if they prefer. Often people take this approach because they think there’s a high likelihood the other party will say “no” and they don’t want to waste everyone’s time if the deal isn’t going to work out.
The question is: What do you do now that you have a verbal counter offer? Well, you have a few options: respond verbally, respond in writing, or don’t respond at all. Of course if you agree with the terms the seller has offered then you can respond verbally and the seller can send you a counter offer with the agreed upon terms knowing you’ll sign it freely. If you’re not happy with their terms then you have to decide how you want to respond. I am a fan of putting things in writing and making your wants known. Let the other person say “no” but don’t walk away wondering what they might have said.
So, if you’re still interested in the property, write up your counter offer and send it over to them. I feel it’s easier to say “yes” if there’s actually something to sign. After all, part of what’s making you uncomfortable is the seller doesn’t seem “serious.” Well, if you want to seem (and be) serious, then put it in writing.
If, however you decide you’re not interested in negotiating further, then you don’t have to respond at all. When I say this, however, I really mean to have your Realtor call their Realtor and tell them you are “declining to respond.” Then, if the seller wants to reconsider their terms and put it in writing they may. If they don’t, you can move on and find another house. Not responding at all can work two ways: it can help you find out how motivated the seller is to sell, or it can stall the negotiations and the parties go their own separate ways. So, unless you’re really ready to walk away, sending a counter offer, however aggressive it may be, is the better way to go.
Good luck and remember, even though interest rates are up a bit, they are still historically low and it’s still a great time to buy!