\u00a0–<\/span><\/p>\nFrom there, start drafting a clear and respectful counteroffer letter that addresses your main concerns. As mentioned, some of the most common concerns for sellers include a purchase price that is too low, a closing date that doesn\u2019t suit their schedule, or requests for repairs. For example, if you believe the buyer\u2019s offer price is below market value, you can highlight this in the letter and indicate the market price. Alternatively, if you are not willing to conduct any repairs on the home, you can also state this clearly in the letter (and perhaps offer something else in lieu). Finally, if the proposed closing date doesn\u2019t work for you, you can propose a new one or even a range of dates for the buyer to choose from. Ultimately, drafting a real estate counteroffer is about communicating your concerns to the buyer. Once the letter has been drafted, your REALTOR\u00ae will send it to the buyer\u2019s agent, at which time the buyer will review it and either accept it, reject it, or counter it.<\/p>\n
–<\/span><\/p>\nReal Estate Counteroffers Example<\/h2>\n
Here\u2019s an example of a counteroffer on a home listed at $1,000,000, where the seller received an original offer of $920,000 from an interested buyer.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\n\n- <\/span>Seller counteroffer #1: The seller does not want to accept or reject the buyer\u2019s original offer, so they decide to make a counteroffer that increases the offer price to $940,000 and includes the kitchen appliances.\u00a0<\/li>\n
- <\/span>Buyer counteroffer #1: The buyer counters the offer price, decreasing it to $930,000, and agrees to the inclusion of the kitchen appliances.\u00a0<\/li>\n
- <\/span>Seller counteroffer #2: The seller counters the offer price again, raising it to $935,000. They exclude the kitchen appliances from the sale to make up for the higher offer price.<\/li>\n
- <\/span>Buyer counteroffer #2: The buyer counters the offer price to $932,000 and agrees to the exclusion of the kitchen appliances.\u00a0<\/li>\n
- <\/span>Seller counteroffer #3: The seller agrees to the offer price of $932,000 and excludes the washer and dryer, along with the kitchen appliances, from the sale.<\/li>\n
- <\/span>The buyer accepts the fifth counter (the third offer from the seller) and both parties sign the purchase agreement to proceed with the transaction.<\/li>\n<\/ul>\n
–<\/span><\/p>\nSix Real Estate Counteroffer Strategies<\/h2>\n
Anytime you make a counteroffer, it\u2019s important to have a strategy in place. We\u2019ve put together a list of tips and strategies for making real estate counteroffers below.\u00a0<\/p>\n
–<\/span><\/p>\n1. Counter according to the housing market<\/b><\/h3>\n
The state of the local housing market ultimately determines whether the seller or the buyer has the upper hand during negotiations. As the seller, it\u2019s crucial that you understand the market, as this will inform the proposed changes in your counter, as well as whether you submit a counteroffer at all. In a buyer\u2019s market, you may have to be willing to accept terms that you wouldn\u2019t in a seller\u2019s market. In a seller\u2019s market, you shouldn\u2019t settle for a buyer\u2019s original offer unless it\u2019s a particularly attractive one.\u00a0<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”54px||48px|||” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
2. Prepare for negotiations<\/b><\/h3>\n
The next tip for making a counteroffer in real estate is to prepare for negotiations in advance. Before you even receive an offer, we recommend thinking about what your ideal offer looks like (including the minimum purchase price you\u2019d be willing to accept). You should also consider, perhaps alongside your REALTOR\u00ae, what terms of an offer you\u2019re willing to compromise on and which are deal breakers. List your deal breakers according to importance. That way, when an offer is submitted, you can easily refer to and pull from this list when crafting a counteroffer.\u00a0<\/p>\n
–<\/span><\/p>\n3. Be respectful and respond in a timely manner<\/b><\/h3>\n
Respect is vital to any real estate transaction. Although selling a home can be stressful, it\u2019s important to always be polite and kind to prospective buyers. You can let the buyer know, in a respectful way, that you hear and understand their concerns but that you aren\u2019t happy with the original offer. From there, communicate your preferred changes as clearly as possible. Further, in any real estate market, but especially a hot one, responding in a timely manner is crucial. Be sure to respect any deadlines and be upfront if you need more time to think about an offer or are unable to review the offer until a certain date (for example, because you are away on vacation or have a wedding to attend).\u00a0<\/p>\n
–<\/span><\/p>\n4. Always include a counteroffer deadline<\/b><\/h3>\n
Speaking of responding to counteroffers in a timely manner, our next strategy for writing a counteroffer is to include a deadline. Most counteroffers will include expiration dates of 24, 48, or 72 hours. An expiration date means that the buyer has until the date to respond to the counteroffer. If they do not respond by the expiration date, the counteroffer is null and void, and a new offer would need to be sent if both parties still wished to proceed with the transaction. Including a deadline with your counteroffer is not only convenient but also creates a sense of urgency for buyers that might make them more likely to accept the offer.\u00a0<\/p>\n
–<\/span><\/p>\n5. Know when to walk away<\/b><\/h3>\n
The next real estate counteroffer strategy is an important one: knowing when to walk away. There might come a point during the negotiation phase when both parties, after sending numerous counteroffers back and forth, simply can\u2019t come to an agreement. This is where tip #2 (preparing for negotiations) might come in handy. For example, if the buyer is refusing to budge on some of your deal breakers, it\u2019s likely a sign that the sale isn\u2019t right. Ultimately, as the seller, you must remember your overarching home sale goals.<\/p>\n
–<\/span><\/p>\n6. Work with a REALTOR\u00ae you can count on<\/b><\/h3>\n
One final strategy for making a real estate counteroffer is to work with a REALTOR\u00ae you can count on. Realtors are excellent resources when it comes to selling a home. Although you can choose to sell your home without a REALTOR\u00ae, doing so could leave you at a disadvantage, especially when it comes to the negotiating phase. Meanwhile, with an experienced REALTOR\u00ae by your side, they can advise you on which terms to counter and which to accept. They can also help you draft the counteroffer letter and submit it to the buyer\u2019s REALTOR\u00ae on your behalf. To ensure you choose the right REALTOR\u00ae, research the top REALTORS\u00ae in your area and conduct interviews with prospective candidates, asking them important questions that will help you gauge if they\u2019re a good fit.\u00a0<\/p>\n
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