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Verbal offers and counter offers in our state are legally required to be in writing. It probably is also in every other state. The he said she said offers are not allowed or even considered. Try to go to court with that if there is a problem.
So, the net effect is that they have offered to sell you their house for $1,000 less than the list price. Evaluate that, and decide if the house is worth that to you.
OP,
There is your answer. Is the house worth $1000 less than list price to you?
If so, buy it. If not, offer a response, improve your offer or stand pat or withdraw.
Don't be distracted by the verbal vs. written negotiations debate. It comes from notions of what people do and how practices vary in various areas of the country.
Is it common practice in your area to break all negotiations down in writing? If so, put your counter in writing. If not, tell your agent to get on the phone with your response.
With the verbal counter offer I am feeling that our offer may not have been presented to the seller or if it was this is a selling tactic to make us agree to something or feel us out without doing a formal counter offer. The seller showed some if their cards and want us to do the same. Before showing my hand do we request this in writing or call their hand and ask if they are serious about getting a deal done, if so let's have a counter in writing that shows they are willing.
With the verbal counter offer I am feeling that our offer may not have been presented to the seller or if it was this is a selling tactic to make us agree to something or feel us out without doing a formal counter offer. The seller showed some if their cards and want us to do the same. Before showing my hand do we request this in writing or call their hand and ask if they are serious about getting a deal done, if so let's have a counter in writing that shows they are willing.
Is it common practice in your area for all negotiations to be documented in writing?
Verbal counter offers (or informal email, not a full fledged draft P&S) seems to be the norm here. Every negotiation we've been in began with us as buyers sending a formal written offer, then however many rounds of verbal / email negotiation, then a final P&S written up. I know that's also been the experience of a coworker who's also buying now and with whom I've been comparing notes.
Our clear understanding and our agent's constant reminder is that nothing is binding and real 'til it's in writing. That said, it's just a heck of a lot quicker to talk out the the numbers verbally. An hour or two of phone calls can easily get many rounds of countering done even when all four people are in different places (both agents, both parties) and maybe none of them in an good place to type/email/scan whatever, like when people are out to dinner, driving, etc.
Verbal counters are the norm in my market. Why are you stuck on getting it in writing? You have an email, which is technically in writing.
And you need to remember that no seller actually pays closing costs. There are tons of threads on this site about that. As pointed out, the seller is willing to net $1000 less than his asking price. If you remove the closing costs, this would be your sales price. If you, as the buyer, need closing costs, you add that to the price and finance them over 30 years. Why would a seller actually pay for a buyer to purchase a home? Sellers look out for themselves as buyers look out for themselves.
A momumental waste of time to submit written counter-offers? An offer is not an offer unless it is in writing. You can hash out details until the cows come home, but until the offer is made IN WRITING and signed by the parties, it's just hot air talking. Agents suggest negotiating tactics -- they don't "work out all the details" and then shove a paper under their client's nose and say "Sign, the other agent and I have worked it all out." We've had deals go 5, 6 counters. PITA, for sure, but each time, someone on either side gets 'creative' and drags it out. Not dumb, and not a "monumental waste of time" -- it's negotiating.
Well again, this might be something that varies market to market, but as we go through (sometimes) many rounds of counter offers/negotiating, I do not have my clients sign each new counter and receive signed counters from sellers - is this what you do? Last year alone, I closed 16 properties and NO co-op agent I worked with asked for a counter in writing (yes, sometimes they came "in writing" via email, but not an official contract).
To your point, an offer isn't going to go through unless/until both parties sign, so I see no reason to keep putting counter offers in writing - what is the point if the other party isn't going to agree? Again, could be a variance pending on where you live, but I think if I asked co-op agents to put all their counters in writing, I would be laughed at.
You said: "An offer is not an offer unless it is in writing. You can hash out details until the cows come home, but until the offer is made IN WRITING and signed by the parties, it's just hot air talking."
That's an accepted contract, not a counter offer. We go back and forth with counters, negotiating price, once we land on agreed upon price, that is when final offer is written out and signed by both parties.
All counters are verbal. It would be ridiculous for everyone involved if all counters were in writing. That's dumb and would be a monumental waste of time. So, I would take this as a valid counter. Once you land on a number that both parties agree to, then get it in writing and fully execute the contract.
I always advise my clients to look at the numbers from a monthly expense standpoint vs. overall purchase price. $8k mortgaged over 30 yrs at 4.5% fixed is like $40ish a month. Decide whether the house is worth a dinner out per month. That's how I like to look at it
Every offer I've ever made or countered has been in writing to bind both parties to their positions and it was the law.
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