REALTOR® Magazine Online: Counteroffers: Seller Dos and Don¿ts

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Counteroffers: Seller Dos and Don’ts

Don’t let disagreement over a minor point take the focus away from a well-priced offer. Remind sellers that the value of the concession is probably far less than the profit they are making on their home.

Guard against “negotiating fever,” where sellers feel that going back with a counteroffer is part of the game. If you think the price is reasonable, encourage sellers not to keep pushing.

Work with the sellers to look for options to unacceptable contingency clauses. For example, if the sellers are able, suggest that they take back a second mortgage on the house for six months so that the sale can close before the buyers sell their current home.

Help sellers put a lower price offer into perspective. On a $200,000 home, an offer of $198,000 is only a 1 percent reduction. That’s like offering $.99 instead of $1. —Martin Shenkman and Warren Boroson, “Offer and Counteroffer,” Chicago Tribune, July 19, 1991

Encourage sellers to weight the offer based on their own urgency to sell and the time the house has been on the market.

6 Top Seller Concessions

1. Sellers let buyers move in quickly.

2. Sellers help with financing.

3. Sellers let buyers rent with an option to buy.

4. Sellers permit certain contingencies.

5. Sellers pay closing costs that are traditionally paid by the buyer.

6. Sellers pay for improvements such as exterior painting.

Source: Adapted from “Counteroffers: What Sellers Need to Know,” Julie Garton-Good (Real Estate Update, December 2000)

Tips For Presenting a Counteroffer >

Keep It Ethical
Never take any action that would discriminate a person based on race, color, religion, sex, handicap, familial status, or national origin. Article 10

Keep It Legal
Either an offer or a counteroffer may be withdrawn at any time before it is accepted, with no financial penalties. In such case, a notice of withdrawal should be delivered to the parties.

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