As a home buyer, you have made an offer to the seller which was much lower than the asking price. If the seller has countered the offer you made, you are now in the same position the seller was in when he received your offer.  As the Indians say, “you are now walking in his moccasins.”

You may accept, counter, or reject the counter offer. The seller may give a prescribed amount of time to respond. If you accept the counter offer then you have agreed to buy the home on the new counter terms. If you decide to counter back, then you are again making an offer back to the seller as you previously did.

A word of caution:  there is a point of diminishing return reached very quickly when too many counter offers are shot back and forth. Primarily due to exasperation and the fact that the process is so emotional for both, more than one or two counter offers generally result in a failed attempt to reach an agreement.

A few tips:

• Try to keep your emotions out of this process.  Even if you’ve fallen in love with the house, take your enthusiasm and your anxiety out of the picture. Stick to your budget. Always be prepared to walk away.
• Be patient.
  Don’t be badgered into making too quick a move or going beyond your budget.
• Be courteous.
  Even if you think the seller is nuts about the value of his house or has maintained it like a slob or has made a ridiculous counter-offer, don’t say so. Keep the negotiations as cordial and neutral as possible.

Good Luck!

One way to help your real estate agent sell your Ocean City home is to make it available.  Selling a home is not unlike any other kind of selling.  If a department store is usually closed, it cannot sell its merchandise.  You can imagine how long a store like that would be in business.

I’ve heard agents complain that some sellers, who insist on a fast sale often are not available when buyers want to drop by.  A buyer may be in the area for just a few days and have only two hours left to see your home.  There are always reasons (excuses) why a house is not showable: You just returned home from work, you are tired, the house is a mess, neighbors are coming over for coffee, etc.

Bear in mind that no prospect will buy your home or condo if he or she doesn’t see it and fall in love with it!  Also, a prospect may be willing to wait a day before seeing your house, but, in the meantime, may see another house similar to yours and fall in love with that one and make an offer on it.  If your home had been seen first, it might have been THE ONE and now off the market.  Lastly, if it becomes routine that your home is not available or “difficult” to show – real estate agents will stop trying.  Please, you have decided to put your home on the market, let us show it!  Someone will love it!

According to the National Association of REALTORS (NAR), we have seen pending home sales rise for the ninth month in a row now.  The Pending Home Sale Index is an indicator that looks forward based upon properties that were put under contract (or pending) the month previously. In this case it would be for October 2009 that they are reporting on.

For those number crunchers out there, the Index increased 3.7% to 114.1 up from 110 in September, and it is 31.8% above October 2008 when it was 86.6.  The rise from October 2008 to now is the biggest annual increase ever recorded for the Index.  The Pending Home Sale Index is at the highest level it has been since March 2006 when it was 115.2.

According to Lawrence Yun, the chief economist for NAR, home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year”.  He sites that the first time home buyers tax credit is probably helping to unleash pent-up demand.  Whether this will continue remains to be seen.  Many factors contribute to the health of the housing market.

In Ocean City, we do not have as many first time home buyers, but we have seen the positive trickle down effect as a result of the overall stimulation in the real estate market.

Many buyers that have delayed purchasing their second homes and/or investment property have come back. Competitive prices and low interest rates have aroused the interest of the savvy real estate purchaser. They are some great deals out there and people are starting to realize it.  We will more then likely slow down over the Holiday, but our spring market, (which begins around President’s weekend in February) should see increased activity.