That\u2019s why it feels like an eternity and a half when you\u2019re waiting to hear from your agent after hearing those magic words: \u201cWe\u2019ve got an offer on the way.\u201d Even though real estate negotiations don\u2019t typically take more than a few days once the ball begins rolling, it feels like forever when you\u2019re going through the stress of negotiating a home sale\u2014one that 40% of home buyers<\/a> rank as the top source of stress in modern life.<\/p>\n While some serious patience is required for smart negotiation, you don\u2019t just have to sit back and twiddle your thumbs. We chatted with the pros to get a sense of how long negotiation takes, what factors can impact negotiations, and how you and your agent help to keep things moving.<\/p>\n So just how long will you be in limbo while you wait to lock in an offer on your house?<\/p>\n The good news is that in most cases, the back and forth between a buyer and seller on the purchase offer should only last a short 1 to 3 days<\/b>, according to top agents in the business.<\/p>\n Barring any circumstances like a bidding war or an especially indecisive or unavailable buyer (which could potentially extend the process by as much as a week or so), negotiations will only take a few hours. You could have an offer at lunch and be signing the paperwork to make it official by dinner.<\/p>\n \u201cNormally, when it comes to pricing and getting a sale price, you\u2019re back and forth at most three times,\u201d said Chris Ognek<\/a>, a top-selling agent in Fredericksburg, VA<\/a> who\u2019s negotiated over 400 real estate deals to date. \u201cBy that point, you\u2019ve gotten the seller and the buyer to their breaking point. I very rarely ever see it go past that.\u201d<\/p>\n That not only allows opportunity for consideration of counteroffers, but also lets both the buyer and seller know that both parties are serious about coming to an agreement in good faith and a timely manner. Let\u2019s go through a few key points to know about this process:<\/p>\n What\u2019s up for negotiation during the offer stage?<\/b><\/p>\n Up for negotiation during the offer stage are the purchase price, closing date, closing costs, earnest money, and buyer\u2019s contingencies such as those terms related to financing, the home inspection, and the home appraisal. If the buyer wants to add any special contingencies, such as buying contingent on the sale of their current home<\/a>, that could take up more time in negotiations.<\/p>\n This is also the time when the seller would need to disclose any attachments to the home they plan to take in the move (such as a stove, refrigerator, or window treatments) and the buyer would have the opportunity to request it stay.<\/p>\n But of all the points of negotiation, pricing tends to be the biggest make-or-break variable.<\/p>\n When do offer negotiations start and stop?<\/b><\/p>\n Negotiations start after a buyer makes their initial offer to the seller. Because it\u2019s often mutually beneficial to move forward as quickly as possible, the length of negotiations comes down to how fast the agents can communicate their client\u2019s interest and get the deal down in writing.<\/p>\n Offer negotiations then officially stop when both the buyer and seller have signed the purchase offer<\/a> that details the agreed upon price and terms.<\/p>\n Are home sale negotiations over after you\u2019ve signed the purchase contract? <\/b><\/p>\n No, the door will reopen for negotiations depending on the results of the home inspection and home appraisal but the process will need to keep moving in order to meet the closing date deadline noted in the contract.<\/p>\n If unexpected issues with the house or a low appraisal throw a wrench in the closing, then you have what\u2019s called a delayed settlement. All in all closing on a house typically lasts between 30-45 days<\/a>.<\/p>\n A counteroffer<\/a> is the seller\u2019s response to the buyer\u2019s initial offer. It tells the buyer that you\u2019re open to their offer, but you need one or more of the terms outlined to be tweaked to suit your needs. A buyer can then submit a counter-counteroffer, and there\u2019s no limit to how many times offers can be volleyed back and forth. Again, though, 3 presented offers\/counteroffers is usually the max.<\/p>\n According to Ognek, most of the time sellers and buyers make a counteroffer for the purposes of hashing out a sales price, as well as any seller subsidies like covering closing costs. Other issues that are commonly covered by counteroffers include:<\/p>\n Just as buyers can withdraw an offer up until the point when it\u2019s officially accepted, so can sellers. There are many scenarios in which this is a reasonable course of action.<\/p>\n One common reason for a seller to withdraw a counteroffer might be if a better offer is received before the potential buyer agrees to the amended terms. In that case, the seller can simply withdraw their offer, meaning that the first buyer is no longer in the running.<\/p>\n You\u2019ve may have heard the term \u201ctime is of the essence\u201d in relation to real estate contracts, but what does that mean for you as a seller?<\/p>\n When a contract states that time is of the essence, it serves as a legal reminder to all parties involved that the clock is ticking. In home negotiations, \u201ctime is of the essence\u201d indicates that the actions of one party depend on a response from the other party within the time specified. If that doesn\u2019t occur, it can be considered a breach of contract.<\/p>\n If you don\u2019t use the phrase in your contract, it can come back to bite you in a big way. In one legal case from 2008<\/a> where two parties entered a contract without using the term, a court found that the agreed-upon closing date was not enforceable because the contract didn\u2019t specifically state that time is of the essence. These five words act as legal protection if the process starts to drag on for longer than it should.<\/p>\n So, since time is such an important factor when selling your home, what can you do to make sure negotiations keep moving?<\/p>\n Price is a huge sticking point when it comes to selling your home, but it\u2019s not the only issue to consider when you\u2019re figuring out what you really need to get out of your sale.<\/p>\n Before you even start fielding offers from prospective buyers<\/a>, take the time to think about what matters the most to you and identify your priorities accordingly.<\/p>\n There are so many factors that go into every home sale, so it\u2019s important to pinpoint ahead of time where you have room to compromise (and where you don\u2019t). If you haven\u2019t figured out whether you really want to fight to take your window treatments with you or even where your price bottom line lies, you\u2019ll be put on the spot when it\u2019s time to make those decisions during negotiation.<\/p>\n Establishing your priorities ahead of time means that you\u2019ll be able to act more swiftly (and confidently) when the clock is ticking.<\/p>\n Choose one or two must-haves, and be willing to negotiate on the rest. Whether you\u2019re most focused on price, timing, contingencies or anything else, your listing agent will be able to help you remain focused on the bottom line.<\/p>\n Pricing your home correctly is the number one way to tip the scales in favor of a swift sale with quick negotiations. Go into your negotiations with the understanding that the process takes time, and that the strategy for closing quickly is going to be different than negotiating with a high price as a priority.<\/p>\n![\"\"](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/how-long-does-negotiation-take-clock.jpg\")
<\/a>Tick-tock! How long til you\u2019ve got an offer on lock?<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/how-long-does-negotiation-take-man.jpg\")
<\/a>How do counter offers work and how can they impact the offer negotiation time period?<\/h2>\n
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The importance of the \u201ctime is of the essence\u201d clause<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/how-long-does-negotiation-take-plan.jpg\")
<\/a>1. Get your priorities together before negotiations even start.<\/h2>\n
2. Gain leverage off the bat with a smart pricing strategy.<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/how-long-does-negotiation-take-agent.jpg\")
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