For The Seller: How Can You Make A Counteroffer?

If a home buyer has already made an offer on your property for purchasing, then it can be confusing as a seller to know the ideal moment to make a counteroffer. This is because no seller wants to scare his or her buyers away. But, at the same time, you don’t want to sell your house at a loss. Hence, you have to find a scenario that can prove to be a win-win scenario for both you and the buyer. 

In case you’re planning to make a counteroffer, then it’s essential to realize what alterations can be made to the original offer that will be reasonable – not only for yourself but the buyer too. That’s why we have created this brilliant guide that you should go through without any hesitation.

The Elements Of An Offer

According to a service provider for home inspections in Ventura County CA, an offer that’s made by the buyer contains a lot more elements than just the price that he or she is willing to pay. Thus, sellers should consider all of the related factors when deciding to make a counteroffer. 

A standard offer will include price, closing date, closing assistance, contingencies and buyer financing. Therefore, sellers need to make sure that they’re fine with every possible factor that the buyer is looking for and not just the price. 

For instance, the buyer may ask the seller (that’s you) to cover the closing costs. It’s normal for buyers to ask for such assistance from sellers and sellers may cover 2-3 percent of the closing costs. However, if the buyer is wanting you to cover more percentage of the closing costs, then you have to judge whether the request makes sense and whether you (as a seller) can even afford to pay the same. 

There can also be contingencies where the buyer will be allowed to change his or her mind, and can even drop out of the contract. For instance, the buyer can include a contingency in the offer that if any major issues are found during the home inspection process, then he or she may not purchase the property. 

Furthermore, as a seller you must learn that the buyer is 100 percent ready to pay the offer price – either via down payment or loan – before you can accept any offer conditions and even put in a counteroffer. 

The Moment When You Should Counter Offer

When a seller signs the counteroffer, it means that he or she has rejected the offer from the buyer. Hence, there’s no way to go back and accept the initial offer from the buyer again. Thus, as a seller, you must spend your time carefully, researching whether you should make a counteroffer. 

Once you make the counteroffer, the buyer can reject the same & thereby walk away from the purchase transaction. That’s why we suggest taking the assistance of a real estate agent so that the agent can tell you whether you should make a counteroffer or accept the initial offer. 

Always remember – if the price offered by the buyer doesn’t satisfy you or you cannot support the number of closing costs that the buyer is asking you to do- then it’s time to opt for a counter offer. Moreover, don’t forget to pay attention to the time frame because in case the deal collapses, then you have to start your search for a buyer all over again. Hence, consider all possibilities before making the counteroffer. 

Lastly, if you’re in a buyer’s market, then it can be dangerous to make a counteroffer since the buyer can always move on to other properties. 

For more suggestions, feel free to contact us at any time.