It is important for buyers and sellers to understand the negotiation process

Negotiation is back in style. It's not uncommon for buyers and sellers to have many rounds of counteroffering back and forth before they arrive at a contract that is completely agreeable to all involved. When this is accomplished, the contract is ratified.

However, there is another important element involved in ratifying a contract. Until a residential purchase contract is completely signed and the final signed documents are delivered back to the other party or that party's agent, the listing is not sold.

You can't rely on verbal negotiations when you're buying or selling real estate. To be binding on the parties involved, real estate contracts and the addenda to them must be written.

HOUSE HUNTING TIP: Timing is critical. If the seller issues you a counteroffer you can live with and you want the house, sign the document as soon as possible, even if the seller gives you several days to think about it. During that time, another buyer could make an offer and your counteroffer could be withdrawn.

After you sign the counteroffer, make sure that your agent delivers it to the sellers or their agent immediately. Whoever receives the document should sign to acknowledge receipt of the document so that there's no question that the contract is ratified.

Don't let yourself be lulled into thinking that because the housing market is generally slow there's no chance you'll end up in competition. The best listings can sell quickly.

Electronic signatures are becoming more popular. But they haven't become standard in the home-sale business.

If a seller who has had no experience with electronic signatures is considering a couple of offers, the seller would probably feel more comfortable accepting the offer with the written signature.

THE CLOSING: That is, unless the price on the electronically signed offer is a lot higher.

Dian Hymer is a nationally syndicated real estate columnist and author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books..