The seller and buyer may find certain points non-negotiable during the home-buying and selling process. As a seller, if an offer has been made on your home and you want to address some of the requests, you can make what we know as a real estate counteroffer for additional clarification, to address concerns and negotiate.
What is a real estate counteroffer?
A real estate counteroffer is a response to an offer on a home. If one party is unsatisfied with the offer, they can counter with a new offer to negotiate terms such as the price, contingencies, timelines and more.
Both buyers and sellers can respond with counteroffers, but the seller typically makes the first counteroffer.
How do you make a counteroffer?
Instead of rejecting an offer on your home, you can counter the offer with new terms in your counteroffer. Typically, you will communicate your revised offer through your Realtor. Once the buyers receive the seller’s counteroffer, they have the same three options as the seller: to accept, reject or counter again.
In addition to price and contingencies, other terms negotiated in a counteroffer can include earnest money deposit, closing costs, inspection date, closing date, moving date or various negotiable terms.
A counteroffer typically includes an expiration date to inform the other party when to respond before the deal becomes void. However, there is no limit to how many times a buyer or seller can make a counteroffer.
Tips for preparing a counteroffer.
As you prepare to write your counteroffer, consult your Realtor or agent for guidance. In addition, here are four quick tips to help you craft your offer.
- Avoid making emotional choices.
- Know the minimum price you are willing to accept.
- Don’t get hung up on the price alone.
- Everything is negotiable.
Withdrawing a counteroffer.
Yes, you can withdraw a counteroffer. This is common in multiple-offer situations. If the seller chooses to withdraw from a counteroffer, this is done verbally or in writing through their representative. Once the seller accepts an offer, the real estate professional informs other potential buyers that their counteroffers have been withdrawn.
What if it gets rejected?
If your counteroffer gets rejected, you have two options. You can either counter again with different terms or choose to walk away.
How to accept a counteroffer.
When both buyer and seller accept the terms of a counteroffer, a purchase agreement is signed, a legally binding contract that makes the counteroffer official.
Summary
Do you need help writing your real estate counteroffers or knowing what to negotiate? Contact Ryan Roberts for all your Auburn-Opelika home buying and selling needs!
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