Real Estate Counter Offers Made Simple

Hey there, is it possible to counter a seller's counteroffer in a real estate transaction? And if so, what is an appropriate response from the seller? Well, yes, it is entirely possible and quite common to counter a seller's counteroffer. In fact, you can go back and forth indefinitely and kind of wear each other out. But this back and forth in negotiation is actually a normal part of the buying and selling process as both parties work to reach an agreement that satisfies their respective needs and interests. Here's how you might approach countering a seller's counteroffer and what you can expect. All right. Number 1, review the counteroffer carefully. Evaluate the terms of the seller's counteroffer. Identify which terms are acceptable and which are not. Consider aspects like the sale price, closing costs, closing date, and any contingency. Number 2, decide on your priorities. Determine what aspects of the deal are most important to you. Is it price? Is it move-in date? Or perhaps certain contingencies like the sale being subject to a successful— in your mind, successful— property inspection. Number 3, prepare your counteroffer. Based on your priorities, prepare your counteroffer. If the seller's counteroffer is close to what you're willing to accept, but not quite there, your counteroffer could adjust the terms slightly and make the deal more favorable to you. Now, I have one caution when it comes to this. I call it turning the dials. You know, if you're wanting to just turn the dials just a little bit, it's really important for you to understand, especially in this crazy seller's market that we're experiencing in my area, which is the Grand Traverse area, the greater Traverse City area. That the back and forth that's going on, you can get the illusion like you have the exclusive deal going back and forth and that they have to finish with you before another offer might come in from another buyer. And that's absolutely not true. That until both parties sign and you have what's called an effective agreement, when both parties sign, until that time, you are not under contract and that seller is not obligated to sell to you. So in theory, you could be going back and forth, back and forth, and you're trying to turn the dials because you want it to just go in your favor a little bit. Keep in mind that if you're doing that and another offer comes in from another buyer that's more favorable to the seller, then they can go under contract with that buyer and leave you out in the cold. So make sure that if you're trying to make those small adjustments, that those small adjustments are important enough to you to lose the deal. If they're not important enough in the crazy seller's market, you might want to just accept those. For example, I had a situation where I was representing a buyer and we knew there was competition, and my buyer didn't like the fact that there was a fuel oil tank in the basement and wanted to require that the seller as was the last little thing, wanted to require that the seller remove that fuel oil tank. Well, my dad was in the fuel oil business as a kid. I've removed a few fuel oil tanks as a homeowner myself, and I just said, you know what, I'll take care of that for you, and let's, let's not risk losing this deal for you. I'll help you get rid of that fuel oil tank, and we made it go away. All right. Number 4, justify your counteroffer. If you're offering less money, justify it with market data, with comparable sales, or points about the property's condition that maybe were uncovered during the inspection. Sellers are more receptive to reasoned arguments backed by data, and that's very important, especially if you're coming back, if you're kind of reopening negotiations after the inspection. It's going to be really important that you're able to share some of the details about what was revealed during the inspection. You also want to be careful if you're doing it about market conditions or comparable sales and those kinds of things. You're going to want to be careful about how you articulate that to the seller. You want to make sure that your agent is an adept communicator who's able to talk to the seller's agent without giving any offense. It's all about how that information is relayed. Number 5, stay open to compromise. Keep an open mind and be prepared to compromise. The negotiation process is about finding a win-win situation where both buyer and seller feel satisfied with the outcome. All right, now let's talk about appropriate seller responses. A seller's response to your counter, counteroffer could vary depending on their priorities, their timeline, and how your offer compares to their expectation or how your offer compares to any other offers they may have received. Here are some possible responses from a seller. The first one is accepting your counteroffer. This would obviously be the ideal scenario where the seller agrees to your terms and you can proceed with the purchase. They can also counter your offer. Counter the counter to the counter. The seller can— might counter again, adjusting the terms further toward a middle ground. This can continue until both parties reach an agreement. Keep in mind about what I said earlier, though. Until you reach an agreement, you don't have an agreement. Next, rejection. The seller can just outright reject the counteroffer if it's too far from their expectation or if they have received a better offer from another buyer in the meantime. Next is withdrawal. In rare cases, if negotiations become too protracted or contentious, the seller can get fatigued and they might just withdraw their home from the market or decide to go with another offer if it's available. In summary, remember that each negotiation is unique and the dynamics will depend heavily on the specifics of the property, the market conditions, and the motivations of both the buyer and the seller. Throughout the process, maintaining open lines of communication and working with a knowledgeable real estate agent can help navigate negotiations more smoothly and effectively. All right, there you go, another specific question about real estate answered here on my channel. If you got anything out of this video, smash that subscribe button, leave me a like or a comment. I appreciate it. Thanks so much. I'm Sander Scott, your full-service realtor.