The Taos Real Estate Negotiation Process

Posted by Jim Kimmons, Broker/Owner • January 6, 2008 • Printer-friendly

Using the promulgated New Mexico real estate forms from the Realtors® Association of New Mexico, there is a process for offers and counter offers. This process, if properly followed, will produce a document trail that makes it very clear later as to the motivations and desired actions of all participants.

The Buyer(s) execute a purchase agreement, or offer to buy.

Their broker presents the offer to the Seller(s) broker, who presents it to the Seller.

The Seller will execute another document, the counter offer, which indicates the differences in what the purchase offer indicates and what they are willing to do.

The Buyer can accept that counter offer or do their own counter to that one.

This back and forth process requires a fresh counter offer document, normally one page, for each step. This leaves an excellent paper trail for all the negotiations. It is important to realize that the purchase agreement is still valid in all its terms throughout this process. Each counter offer indicates that the purchase agreement and named previous counter offers are a part of the agreement. Each subsequent counter offer is to submit changes to all previous terms.

In other words, unless amended by a counter offer, all terms in the purchase agreement are agreed to by both parties. If you don't agree with something, it must be specifically addressed in a counter offer. And subsequent counter offers can change previous agreed upon items in counter offers or the purchase agreement.