You’re selling your home at a price settled upon by you and your real estate agent. You are excited to list your home and are anticipating some offers. Finally, you get a hit, What now? It’s lower than you thought it would be. A potential buyer makes an offer, but it’s lower than the asking price which is not unusual in today’s market.
Negotiations are underway after the offer is made. This is where you really need to depend on your real estate agent’s expertise to guide you thru this nerve-racking time. The buyer will obviously want to push you for a price as low as they can get. You will need to determine through your own checks and balances if their offer is acceptable. Typically, a low-ball offer is considered 20-25 percent below asking price. You may choose to ignore it or to make a counteroffer, depending on your own timeline for moving.
Before you counteroffer, make sure to carefully research the property values of other homes on the market in your area. Rely on the agent’s expertise of the market to help you with your counteroffer price back to the buyer. If you go back too high, they may walk away and if you set it too low you may be leaving money on the table. Also, make sure to consider some of the other factors of the offer. Is the financing solid? Is the date of closing good for you? How much is the down payment? What are the inspection contingencies?
Knowledge is power in negotiations and you want to put yourself in the best position to make smart counteroffers. Have your agent discuss the situation with the buyer’s agent to gain as much information as you can. You never know the situation they could be facing, and it may be useful to understand the Buyer’s objectives.
With an informed approach and a good attitude, you will likely reach an agreement that is acceptable to everyone. Always remember not to take the negotiation personally, it is a business transaction. Remember, if the negotiation is not in your favor you can always walk away and wait for the next opportunit
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Counteroffer Tips for Sellers, Negotiations are underway after the offer is made. This is where you really need to depend on your real estate agent’s expertise to guide you thru this nerve-racking time. The buyer will obviously want to push you for a price as low as they can get. You will need to determine through your own checks and balances if their offer is acceptable. Typically, a low-ball offer is considered 20-25 percent below asking price. You may choose to ignore it or to make a counteroffer, depending on your own timeline for moving.
Before you counteroffer, make sure to carefully research the property values of other homes on the market in your area. Rely on the agent’s expertise of the market to help you with your counteroffer price back to the buyer. If you go back too high, they may walk away and if you set it too low you may be leaving money on the table. Also, make sure to consider some of the other factors of the offer. Is the financing solid? Is the date of closing good for you? How much is the down payment? What are the inspection contingencies? Knowledge is power in negotiations and you want to put yourself in the best position to make smart counteroffers. Have your agent discuss the situation with the buyer’s agent to gain as much information as you can. You never know the situation they could be facing, and it may be useful to understand the Buyer’s objectives.
