One seller may be overjoyed with their offer, while another may be disappointed. So what do you, the seller, need to know before you negotiate with a home buyer?
When you receive an offer, you can accept it as-is, reject it outright, or make a counteroffer — a move that opens negotiations with the buyer. Obviously, money is important.
There are other factors to consider when crafting a counteroffer, particularly timing. So, sit down with your agent and have an open discussion about your goals. Do you want more money? A faster closing period? Fewer contingencies? When you review these types of questions with your agent before you respond to an offer, and have a crystal-clear sense of your priorities, the negotiation process will go a lot more smoothly. Ready to play hardball?
Hold up, slugger. First, you have to consider your position on the field. How much negotiating power do you really have? Your agent can help guide you through negotiations by breaking down the offer specifics. From there, you can decide whether to counter the counter or simply move on. Seller Resources. Table of Contents. What is a counter offer in real estate? Closing date, to specify the timeline from the purchase contract through the final signatures: For example, if the original offer specified a closing date 45 days from acceptance and the seller needs more time to vacate the home, they may present a counter proposing a longer escrow period to allow them the time to make their move.
Earnest money deposit amount, or how much the buyer will put down immediately after signing the contract: This is a way for the buyer to show you the money and make their intentions to purchase your home clear. Any buyer-requested contingencies, such as financing or a home inspection. Can you withdraw your counter offer? Does the counter offer void the original offer?
Can you issue multiple counter offers to more than one buyer? How does a seller or buyer accept a counter offer? While the counteroffer is outstanding, your home is effectively off the market.
The more days your home is on the market, the less desirable it appears, and the more likely you are to have to lower your asking price to get a buyer. Buyers are often feeling cash-strapped from the down payment, moving expenses, the prospect of redecorating costs—and maybe even from paying the closing costs on the home they sold.
If you give them the cash they want for closing costs, the transaction may be more likely to proceed. When a buyer submits an offer and asks you to pay the closing costs, counter with your willingness to pay but at an increased purchase price, even if it means going above your list price. The key to executing these negotiating strategies successfully is that you have to be offering a superior product.
The home needs to show well, be in excellent condition, and have something that competing properties do not if you want to have the upper hand in negotiations.
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Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Most of the time, a counter offer is acceptable. But be careful how far you take the negotiations. And know your local real estate market. If you are in a real estate market that is competitive, a counteroffer might be a poor strategy.
In a competitive market, when you counteroffer you risk losing out on a deal. Prices often get pushed up and multiple offers are common. No matter what the market, you can push negotiations too far.
If the buyer or seller gets greedy and continues to be aggressive in their negotiating tactics, the other party is more likely to walk away from the deal. Yes, buying and selling a house involves negotiating. When the buyer or seller believes the counter offer is excessive or unreasonable, they can easily get frustrated and offended.
It could mean a lost sale.
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