There are many occasions on which buyers and sellers disagree on the price of a house. In these circumstances, it’s important to understand the role of counteroffers.
Though realtors have the most involvement in this process, you, as the buyer, should also know what’s going on. Here’s a guide to navigating a counteroffer:
Why do they happen?
There are many reasons a buyer or seller could come up with a counteroffer. The first main reason is simply the cost: when an offer is too far below the listing price. Another reason is if the seller would like to change the closing date. The final prominent reason has to do with the home itself: an appraisal or decisions on appliances may affect the price.
What is the best way to negotiate?
The greatest advantage you can give yourself when you’re in negotiations is to have an experienced and knowledgeable realtor behind you. You and your realtor should then learn as much as you can about the other party.
You can use a restrictive timeline to your advantage. Sellers might need the money from this sale in order to pay for their next home. Conversely, buyers may be working against the deadline of an expiring lease.
Inspections can also affect the power of either party. Sellers must anticipate repairs needed to their home in advance, or it could affect the price. For buyers, this means it’s well worth paying for a home inspection.
How do you respond?
It’s essential to be meticulous: even if your agent sums up the deal, you need to know every detail. Additionally, bear in mind that future appraisals and inspections can affect a counteroffer; anticipate what those effects could be.
Regardless of whether you’re buying or selling a home, you need to know your limits ahead of time. Before you begin dealing with counteroffers, decide what your price point is and stick to it.