Etiquette Of Receiving Or Giving Counter Offers In Real Estate

Real estate deals are complicated. Whether you’re the buyer or seller it’s never as simple as accepting an offer and signing the contract on the dotted line. As there’s wiggle room on both ends. 

It’s unlikely either party will expect the first offer to be accepted, most will be subjected to a counter offer. Buying and selling property in America is all about negotiation. But what is a counteroffer, and is there a real estate counter offer etiquette?

What are counter offers on homes?

Most Americans know what an offer is. You are expressing interest in purchasing an item, or in real estate a particular property at a specific price.

While the seller can accept this offer as-is, they can also reject it outright, or make a counteroffer. By counter offering, they are showing they are willing to move the negotiation process along with the potential buyer.

Both sellers and buyers can post a counteroffer as long as both parties want to continue the negotiation. But, push too far and either party can drop out. 

As a rule of thumb, if your offer is equal to or above the asking price of the property, the seller will most likely accept. However, most buyers will offer less than the asking price. 

Remember the generalization above is dependent on the current real estate market climate.

If you are working through a realtor, they can sometimes present the seller with multiple interested parties, each with their own individual offers. It’s also worth noting that a seller never needs to officially respond to any offers made. 

While sellers will most likely respond out of courtesy, if they reject your offer they might also include a reason why, which will be liaised through the agent. 

In short, a counter offer in real estate is simply just another offer. 

If you are interested in making a counter offer, you will need a few tips on how to write a counter offer in real estate. 

How to write, or make, a counteroffer

Writing a counteroffer letter is important for the potential buyer. Being able to answer the question of, “How to counter offer a real estate offer?” or “How to make a seller’s counteroffer?”  You need to prove without a doubt that your new offer is fair. This can be accomplished by: 

Include comparisons 

As a buyer, finding leverage to show the seller that your offer is fair for their property in their neighborhood is usually done by resorting to a Comparative Market Analysis (CMA). A CMA  will list properties that have sold in the surrounding area within the last 90 days. 

It will also include the final selling price, floor space, property size, and the number of rooms. 

These comparisons should help motivate that your offer is fair.  A CMA can be bought from a real estate agent or online. 

The next step is to try and make a personal connection. 

Make a connection 

It is a hard balance to maintain between personal and professional, but when writing up your counter offer letter you need to connect with the seller. There are few people in the world that don’t want to be empathic to your concerns if they’re relatable. 

Remember, buying and selling a home is an emotional experience, as there are years of invested memories and potential experiences. 

However you convey your personal touch, make sure the seller can pick up on it. 

Next might require some personal digging. 

Personal motivates 

Often, understanding the reasons why the seller is departing from the property helps to strengthen your offer. If they are chasing a new venture, need capital, or are downsizing, you can always use this to your advantage. 

In the instance that they need to sell their home to finance the purchase of a new home, being able to come to the table and ease that process can also help. 

Often in a counteroffer, you can stipulate that you’re willing to cover the closing fees that are normally dealt with by the seller. Anything to sweeten the deal will help. 

These are all real estate counter offer strategies for buyers, but this information can also apply to the seller. Knowing the true worth of your home after doing research, making a connection, and understanding the buyer’s personal motivates can help you with your negotiations. 

Now that you understand, “What is a counteroffer in real estate?” we should visit reasons why you wouldn’t engage in such negotiations. 

When not to make a counteroffer

This is a useful skill for both parties to learn. Accepting a bad deal has long-lasting implications. But what are these signs? 

When you’re out of budget

For sellers and buyers, there’s a set budget that needs to be adhered to. This is a step that needs to be taken before making an offer or listing the property. 

As a buyer, you might be tempted to chase that renegotiated price, but don’t. And with sellers, you need to stick with a minimum price that you’re happy with, as the sale of a home is a large chunk of change. Also, most sellers use these funds to finance their new dreams. 

Too many contingencies

The last place you want to be stuck is with a real estate deal with too many contingencies. Most of these contingencies will be in the favor of the potential buyer who might need to call in an appraiser to evaluate the value of your home. This is part of them needing financial assistance with the purchase, which is more common than a cash buyer. 

And if they are a cash buyer, they can often push for more preferential treatment and ask for warranties on appliances and fixtures in the home. 

Meeting multiple contingencies also extends timings and can get annoying. 

Too emotionally involved

Also, a buyer can tug on your heartstrings when you’re the seller. Painting pictures of their new life in your old home. These emotions can lead to rash decisions and should be avoided. Always take a step back and think about the decisions you’re about to make for at least a day. 

This is a business transaction. 

The offer is too low 

Be very wary of entering into negotiations at a low starting point. Most negotiations meet somewhere in the middle. If the middle ground amount is heavily short, don’t engage. After all, as the seller, you’re not required to respond. 

There are also some occasions when you should just accept the offer. It’s rare that you’ll be given the asking price on the first offer, but if you do, accept it. 

If the offer is a little below the asking price, say within 1%-5% below, take it. As a real estate counter offer example:  If your asking price is $100,000 and the offer is $97,500 you should accept it knowing that if you have had the assistance of a realtor, you’ll also be paying them around 6% of the $97,500. 

It’s never easy to get a clean deal when selling a home. Except when your buyer is coming in with cash and zero contingencies. 

Like the cash buying services of House Buyers of America. But why would you choose them? 

Why trust House Buyers of America to buy your home? 

Since 2001, House Buyers of America has bought and sold homes in Maryland, Virginia, and Washington, DC. During this time we’ve innovated the real estate game, as well as impressed thousands of customers. 

It’s this longevity and success that sets us apart. 

And if you don’t trust us, you can trust our hundreds of references. 

Not many companies in our industry are as well respected as House Buyers of America. 

Currently, we have over 100 reviews with 5 stars with testimonies from a select few! Most of these reviews highlight that House Buyers of America will: 

• Sell houses fast
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House Buyers of America has also earned an A+ rating with the Better Business Bureau (BBB), which is an organization that helps United States, Canadian, and Mexican consumers find businesses they can trust. 

But it’s our positive rating on Facebook and Google we’re most proud of, with hundreds of positive reviews. 

When you’re selling your home you want to be 100% sure that you can trust the company you’ve contracted to help you. And nothing will put your mind at ease more than reading our clients’ reviews of our services. 

And because our clients have spoken about us with such fondness, we’ve been asked to contribute thought leader comments to various publications. 

Submitting our professional opinion to America’s most trusted media outlets, like: 

• USA Today
• The Wall Street Journal  
• CBS News
• ABC
• NBC
• And Fox

But how does House Buyers of America work? 

How House Buyers of America works

We’ve ensured that every step is simple, quick, and efficient. That’s why our first step is you approaching us. 

Simply give us a call at 855-659-3289 or use our online form to get started!

Within 10 minutes, if the call is made during office hours, we will have a fair cash offer for your property. 

Once we’ve gathered your information, we will arrange a time for us to come by the house to finalize that important paperwork. 

And once you’ve signed on the dotted line, the money will be in your bank account in a matter of days. 

It’s never been easier to sell your house fast.