Real Estate 101: What is a Counter Offer and How Does it Work?

Real Estate 101: What is a Counter Offer and How Does it Work?

Real Estate Counter Offer

Contract ReviewIt's the big moment! After months of preparation, you finally get an offer on the home you're selling. But wait... This offer stinks. What should you do? Here we discuss the art of the counter offer in real estate.

With the average house selling for 98% of its asking price, it's a great time to sell your home. But what do you do if a buyer gives you a bad offer?

That's when you need to issue a counter offer.

In this article, we'll tell you everything you need to know about using counter offers to get your best offer.

When Should You Make a Counter Offer?

If you've never sold a house before, the prospect of issuing a counteroffer may seem dramatic. But counteroffers are very common. They're part of the negotiating process.

If you're not happy with any part of the offer, make a counter. Never sign something you don't feel good about.

There are a few specific reasons you might counter.

Making a Counteroffer to Raise the Price

A savvy buyer is going to do everything they can to buy your house at a low price. They may go so far as to give you a ridiculous offer to start. Don't be turned off.

If the offer is so ridiculous it's insulting, simply tell them that you appreciate the offer but can't accept it. At this point, if they really want the house, they'll send you a new offer. Hopefully, they've raised their price and you can start negotiating.

If the offer is reasonable but low, supply your own counteroffer.

How much should you counter with?

That depends on how long you're willing to wait and how much demand there is. If there's a lot of demand for houses, and you're in no rush, counter with a big number. If your house has been on the market for a while and you're ready to get out, it might be time to be realistic and settle for a lower number.

Either way, expect some back and forth. There will probably be a few more counteroffers made before you and the buyer arrive in the middle. So always aim high on your counters and expect some negotiation.

Depending on the nature of your brokerage contract, you might need to pay a fee for each counteroffer. So, keep that in mind when you're deciding how much negotiating you're willing to do.

Working Out the Details

Just because you're happy with the buyer's offering price, doesn't mean you shouldn't issue a counteroffer. Read the contract carefully and pay attention to all the details.

Are you happy with the move out date? Are you happy giving the buyer any appliances they've asked for? Are you happy with the language of the contract?

Make any appropriate changes and counter. The buyer will usually accept small changes without much pushback.

Get the Best Price for Your Home

If you want to get the best price for your home, you're going to need to have an agent by your side. An agent will know when to make a counteroffer. And they'll know how to best maneuver through the negotiation process.

If you're looking for help selling your house in Florida, don't hesitate to contact us.

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