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As a home buyer, if you make an offer below list price, the seller may choose to reject, accept or simply let the offer expire. If there are multiple offers, the listing agent will lay out the options for their client<\/a> and then notify all buyers\u2019 agents of the choices. Sellers may also counter your proposed closing date. If they need to move out quickly, they may want to push it earlier. They may also ask to rent the property for a time after the settlement.<\/p>\nPrice and closing date negotiations are common from both parties, but there are even more reasons sellers can potentially get countered. The condition of the home is likely the biggest factor here. As home buyers conduct ongoing research into the home, any problems with the condition of the house can result in a counteroffer.<\/p>\n
If you\u2019ve chosen to take appliances with you when you move, buyers may also look to negotiate for those. Appraisals are another reason\u00a0for counteroffers. If an\u00a0appraisal comes in below\u00a0the agreed-upon sale price, it will affect the amount the mortgage company will lend to the buyer.<\/p>\n
Negotiation power<\/h2>\n
When reviewing a counteroffer, it\u2019s important to have\u00a0an experienced real estate agent\u00a0who can capitalize on your advantages in a negotiation. Both sellers and buyers can take steps to put themselves in an advantageous position through planning and smart counteroffers.<\/p>\n
Knowledge is power in negotiations, so try to glean as much information about the seller or buyer as you can. Your agent will also seek information from the other agent on your behalf. Sometimes sellers use the pending sale of their home to finance another, meaning they have a truncated timeline and could be more eager to make a deal. Similarly, buyers who have terminated a lease may be desperate for a place to live and more willing to negotiate.<\/p>\n
If you\u2019re selling a home with known issues, anticipate how these problems may put you at a disadvantage during negotiations. A leaky roof may not be discovered until\u00a0after buyers order a home inspection. Depending on the cost, they may ask the seller to either fix the roof or deduct the cost of a new roof from the sale price.<\/p>\n
These types of issues put sellers at a distinct disadvantage because they have to either pay for repairs, lower the selling price, or reject the counteroffer and hope the next buyer doesn\u2019t notice or care about repairs. This is why it\u2019s worth the money (around $500) to pay for an inspection before listing a house. Preparation can save you headaches and money down the road.<\/p>\n
Responding to a counteroffer<\/h2>\n
If you\u2019ve received a counteroffer as a buyer or a seller, carefully review every aspect. Real estate agents, apart from yours, are under no obligation to ensure you read the full contract. So make sure you read everything carefully before you sign. With each counteroffer, consider every aspect of the sale, including old and new information.\u00a0If you made an offer above the list price, an appraisal always can come in low.<\/p>\n
If you are responding to a counteroffer before an appraisal or inspection, keep those at the forefront of your mind. Prepare yourself for future counteroffers once they are completed. Whether you\u2019re selling or buying a home, establish a baseline for when you will walk away from a sale. As a buyer, you don\u2019t want to spend so much on a home that you move in with no cash for improvements and repairs. And as a seller, you should know how much you want to make off the sale.<\/p>\n
With a measured and informed approach, counteroffers can be your friend. Communicate often with your agent\u00a0to let them know what you want from the sale, and never be afraid to\u00a0walk away\u00a0if things go south.<\/p>\n","protected":false},"excerpt":{"rendered":"
Buying a home is rarely as simple as making an offer and paying that offer out. Negotiations can go back and forth for weeks before the seller and buyer are both satisfied. The vehicle for this negotiation is the counteroffer \u2014 a vital and complex rejection and counter to an offer made by either party. […]<\/p>\n