Do you know what to do when you are putting an offer in on a home and the seller counters? Today I have a few options for you.
If you are working with an agent to buy a new home, when you find what you want, you are going to submit an offer to a seller. The seller then has three options: reject your offer, accept your offer, or counter your offer. But what do you do when your offer is countered? Today I have a list of some of your options.
Typically, counteroffers mostly deal with price. Be aware of the comps and know that in this market, most homes are selling right away. We recommend putting your best foot forward on your initial offer, so the negotiation time is cut down. This also helps prevent other buyers from coming in behind you.
Having a flexible closing date may help. It is very important that your agent knows if you can be flexible on your closing date as a seller may find it preferable. I hate to see counteroffers come back where the only thing changed is a closing date. This could have been avoided if the agent was aware of your flexibility.
Putting in an offer that allows the seller to rent back from you could also help because it allows the seller to stay longer. An example of this is when a seller is buying new construction and the home will not be ready until after closing. If you allow them to rent the house back from you, they will not have to move twice, which will make the process much easier for them. Make sure you speak with your lender to see if it is allowed.
Making sure you choose the correct agent also helps in counteroffer situations. Ask a potential agent how many offers they have negotiated and tips that you can use as a buyer to negotiate better. The agent should be able to provide you with multiple ideas that can help get your offer accepted.
Another thing to think about if you are negotiating on a property is if you are willing to raise your price. Let’s say there are three other buyers who put in the same offer of $200,000 but the seller counters at $205,000 because of the interest. If you feel the property is worth that, it may be something worth considering.
However, if you feel there are no comps to support the higher price, be aware that the mortgage company could have an issue when the appraisal comes back. Have a conversation with your agent if you feel like the pricing that you are negotiating is higher than comps that your agent can show you.
Finally, communicate with your agent often and make sure that they are aware of what you want. This will help your agent keep your interests in mind when they are writing an offer and getting everything prepared.
If you have any additional questions or are interested in speaking with me about buying or selling, please feel free to reach out to me. I would love to speak with you.