If you put your house on the market and someone is interested in buying it, that person can make you an offer. You can accept or reject the offer outright, or you can make a counteroffer. That means that even though you don’t agree to all the terms the buyer requested, you’re willing to negotiate and try to reach an agreement that works for both of you.
How Should You Evaluate a Buyer’s Offer?
When you receive an offer, review it carefully and discuss any concerns you have with your real estate agent. Even if the offer isn’t exactly what you’re looking for, you might consider it reasonable and think that it will be worthwhile to try to negotiate with the buyer. If you decide to make a counteroffer, your agent will communicate that to the buyer’s agent.
What Changes Might You Request in a Counteroffer?
An interested buyer might have offered you an amount below your list price. The buyer might think the price you requested is unreasonable or might want you to lower the price because the house needs repairs.
You might respond with a counteroffer requesting a different amount that’s somewhere in the middle and back it up with information on recent sales of comparable houses in the area. Another option is to request your list price (or an amount close to it) and offer to throw in appliances or other incentives to sweeten the deal.
Price isn’t always the issue. For example, you might want the buyer to make a larger earnest money deposit or close on a different date that better suits your timeline.
How Long Does a Buyer Have to Respond to Your Counteroffer?
When a party makes a counteroffer, it’s only valid for a limited amount of time. In a competitive real estate market, a counteroffer might expire in as little as a day. That makes it essential for both the seller and the buyer to be in close contact with their real estate agents.
What If the Buyer Counters Your Counteroffer?
Either party can make a counter to the other party’s counteroffer. It might take several rounds of negotiations to hash out an agreement that works for both sides.
While you’re going back and forth with an interested buyer, you might receive an offer from someone else. If that buyer offers terms that work for you, you can withdraw a counteroffer that you made to the first buyer if that person has not yet responded.
Depending on the state where you live, you may or may not be permitted to make counter offers to two buyers at the same time. If you do, you might wind up being legally bound simultaneously by agreements with two different sellers. It’s best to avoid that possibility by only negotiating with one interested buyer at a time.
