Proper counter offer etiquette???

Question

Hello,

We just received a low offer on our house and need to counter offer. My husband does not want us to give a counter offer-hoping to get a full offer from someone (or at least close to our asking price). I feel we should at least acknowledge the offer today or give a high counter back.

I'm also excited and anxious because the house has only been on the market for two weeks in this slow market (Long Island), and I don't want to lose out on a buyer.

We countered. I feel like we had to. I don't want to lose a potetial buyer, especially in this market. We came down $10 grand from our asking price. This is really as low as I wanted to go in order to get enough $ for a new home.

Answer 1

I always tell my clients never refuse an offer outright. Always keep the lines of communication open, that is the key to a successful negotiation. Even if you only counter 500 less than your asking, you are showing you have interest in doing a deal. Just as they did with their low offer. In this market you Never want to run a qualified buyer away. Work down to your lowest price in increments, if you cant get them where you need them to be, then cut bait. Never end talks this early. Your husbands hard ball approach will backfire time and time again. Remember people have emotions, and they play a huge role in a purchase like this. Make them angry with a flat out no, and expect to never hear from them again.
RE Agent,
Remax

Answer 2

I would suggest trying to massage this offer upwards.

Refusing to counter offer sends a message to the potential buyer that may feel like you will not be willing to work together towards a fair deal.

That buyer can certainly take that offer elsewhere, as you know. Unless your house is something truly unique - or has an AMAZINGLY competitive price - why close the door on this already?

You did not say how far apart you are in price from the potential buyer. If it's ridiculously low, refusing to counter will say that the buyer needs to get real. In that case, a simple phone call to reject the offer without a counter would be the polite thing to do.

But, if it's low but not ugly, why not counter? What can you lose?

If you working with a realtor, put your heads together for a strategy session. Your realtor will know the local market best, and have some strategy suggestions based on experience in these matters.

Excellent negotiating skills can not be acquired via quick email (it's one reason why people hire realtors - some people simply SUCK at negotating, particularly something as near and dear as the sale of their own property ) - there are too many variables involved in each individual situation - but here's one suggestion:

If you are selling the house yourself, consider making a counter offer that is NOT your bottom line. Offer enough of a price reduction to be fair and to keep the ball in play. But don't be silly - like taking $500 off the listing price - what you will get back is the buyer adding $500 to his offer.

If they counter back again REAL low - without much upwards movement, it may be time to walk away. They aren't going to get near your desired price any time soon.

FYI, full price offers are rare these days. Your husband may need to adjust his expectations. Everybody wants a deal - or to at least feel like they got a bit of a price break. Even if your house is already the lowest price property in the neighborhood, a buyer will want to feel like they made a good deal. Human nature.

You will never know if this buyer is "just testing the waters" looking for a steal, or a real buyer working a strategy towards a fair deal - unless you counter.

One final comment - since you have not mentioned a realtor in the picture, how do you know the offer is LOW? If you priced the house yourself, is it based on recent comparable sales, or just what you are hoping to make in the deal?

Pricing a house is very complicated and very serious - and you may find that the offer in hand is from someone who knows the local market better than you, and may, in fact, be a pretty darn good offer.

Good luck and best wishes.

Answer 3

I agree that you should counter the offer. The market is tough, and sadly many buyers think they are in the driver's seat with making offers. I see these comments daily in this forum, with advice to buyers to offer at least $25,000 below asking price because 'it's a tough market'.

If your house is fairly priced, stick to close to the asking price, but giving enough to show that you are negotiators. If the buyer comes back with another ridiculously offer, THEN it's time to show him he's reached the bottom, and counter what you countered in the first counter offer.

If he's serious about buying the property, he will get the message. If he's just fishing for a hot deal, you probably don't want to sell to him anyway unless he comes up.

You are only out there two weeks. Hang on a bit.

Answer 4

Where's your agent?

If its really low it is obvious they are "bottom line fishing".
If you're desperate to sell, counter back at your bottom line and hold firm.
If its really insulting counter at full price.
If it was me, I'd tell the buyer to come back when they can give me something to work with.
Unfortunately the market is tough and people tend to be making these insulting offers.
Good Luck!

Answer 5

offer more than what you are looking for offer 10% more than the difference between what the offer and what you are looking for. See if you get any movement. it is only been 2 weeks wait it out.

Answer 6

It is nice to counter offer. If you feel your house is worth it, just counter offer at your sales price. That is saying thanks for the offer but this is what its on sale for.