Understanding and Controlling the Timelines in Real Estate Transactions: Acceptance or Rejection

Whether you're buying or selling a house, understanding the timelines and controlling the response process can significantly impact the outcome of a real estate transaction. This guide will explore the importance of setting deadlines, the reasons behind different seller response times, and strategies to ensure a smoother transaction process.

Setting Deadlines on Your Offer Sheet

One of the most effective ways to control the timeline of an offer is by placing a deadline on your offer sheet. For instance, you can write an offer of $1 million with a stipulation that the seller must respond by midnight on August 3, 2024. This way, your offer stops being valid on August 4, effectively giving you a deadline that you control. This method enables you to manage the process, rather than leaving it up to the seller or their agent.

Standard Form: Days for Seller Response

The standard form of the offer often includes a specified number of days for the seller to respond. While many contracts set this period at three days, it is often longer than necessary. The length of the response period can vary greatly depending on the seller's motivation and circumstances.

Varied Seller Motivations

The time it takes for a seller to respond to an offer is directly influenced by their motivation. Some sellers are highly motivated and will respond quickly, especially if they need to move due to personal reasons. For instance, when we made the offer on the house we live in now, it was accepted within a day because the seller needed to relocate and didn't care much about negotiating beyond the asking price.

Other sellers may be less motivated, and their response time can be significantly longer. Factors such as their financial situation, the condition of the home, and even personal matters can impact their willingness to accept or reject an offer promptly. A professional real estate agent can often identify reasons why a response might take longer, such as the seller needing to meet with their mortgage company, lawyer, or ex-spouse.

Extensions and Counters

Offers are only considered valid until the seller accepts and signs the agreement, which might include a deadline for acceptance. Sometimes, the deadline can be extended out of courtesy, especially if the seller is sick or out of town. If an extension is granted, the buyers still have a set acceptance period, typically 24 to 48 hours.

When the seller counters the offer, a new acceptance deadline is established. For instance, in St. Louis, most offers are accepted within 24 hours unless a deadline with an offer review period is specified. Agents often remind buyers to submit offers by a certain Sunday with an acceptance deadline of a specific time on the following Monday. This allows the seller to review all offers presented.

Strategies for Faster Acceptance

For buyers, the key is to present an offer as soon as possible. The sooner you make your offer, the more time your agent has to work on your behalf. When presenting offers for buyers, I often reach out multiple times to the seller's agent to gather as much information as possible.

If the seller is likely to accept the offer, I inform the buyer, and they can choose to move forward. If the information suggests the offer won't be accepted, we can redirect our efforts to other homes. When we have enough information, we can also advise the buyer to increase their offer based on the latest data.

Conclusion

Understanding and controlling the timelines in real estate transactions is crucial for a smooth purchasing process. Setting deadlines on your offer, being aware of the seller's motivation, and utilizing the advice of a professional real estate agent can significantly improve the chances of a swift and favorable outcome. By following these strategies, you can enhance the efficiency and effectiveness of your real estate transactions.