REALTOR® Magazine Online: Tips for Presenting a Counteroffer

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Tips for Presenting a Counteroffer

Appeal to fairness. “We’re willing to lower our price by $5,000, but it’s only fair that you not require us to repaint the house.

Focus on the points of acceptance. “The buyers felt that everything in your offer was acceptable, but one minor point..."

Explain why delays may be undesirable for the buyer. “You know, if interest rates are rising or home prices are going up and you have to start your home search over again and your costs may be even higher.”

Remind buyers what they like about the house. “When we were deciding on the original offer, you said that this house had the perfect backyard for your children.”

Present the offer in person. Just as you would with an initial offer, don’t discuss a counteroffer over the telephone.

Get the buyers prepared. When you write up the original offer with buyers, remind them that their first offer may not be accepted. That will wiframe of mind for making a counteroffer that sellers will like.

3 Reasons Buyers May Want a Counteroffer

1. To spark negotiations. A buyer might make an opening offer just to get the negotiations going.

2. To reach compromise. If the seller has an unrealistically high asking price, the buyer might make a low offer to try and strike a compromise.

3. To find affordability. A buyer who can't afford what the seller is asking might offer something close to his or her maximum, hoping the seller will make a viable counteroffer.

Source: "Tips and Traps When Negotiating Real Estate," by Robert Irwin (McGraw-Hill, 1995).

For the Advanced Salesperson

Make a counteroffer to only one buyer at a time, informing other buyers that their offers will be countered if the negotiations don't produce an agreement within a set number of days. Legal problems could arise if the sellers' multiple counteroffers were accepted.

Preparing the Sales Contract >

Keep It Legal
The listing agent can't tell the buyers anything that would weaken the sellers’ bargaining position (such as a price the seller would be willing to settle for). Similarly, a buyer's agent can't reveal the buyer's top price to the seller unless authorized to do so.

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