Buying a home isn’t as simple as it sounds. Sure, you find the right home, you make an offer, it gets accepted and you close, right? Wrong.
From the time you make the offer to the time, it’s accepted, quite a bit can happen. Buying a home usually includes more to the process than just the basics. A counter offer is likely going to be a part of the process, along with the possibility of having your offer rejected.
If you’re buying or selling a home, you should understand what a real estate counter offer is and how it works.
Why was your Offer Countered?
Buyers often want to know why they received a counter offer, especially if they think they put in a fair offer. If your offer was below the list price, the seller may reject it, accept it, let it expire or counter the offer. When they receive multiple offers, they are more likely to counter or reject your offer than if they only receive one offer.
While you’re below list price offer may be countered due to the price, not all offers are countered due to the price. You may be countered because of the proposed closing date or another reason. Maybe your offer included a contingency the seller didn’t care for. It’s even possible that the seller will counter and ask to rent the property after settlement for a short amount of time.
The most common reasons you receive a counteroffer is the price and the closing date. Maybe the seller needs to move out faster than you want to move in. Maybe the price you offered is below what they think is fair or they are willing to accept.
As a seller, you may get a counter offer after accepting the buyer’s offer. They may find out the condition of the home isn’t exactly what they thought it was and they may submit a counteroffer. In addition, if the seller is taking the appliances with them, the buyer may decide to negotiate this, too.
Another reason the seller may receive a counteroffer is the appraisal. If the appraisal comes in below the agreed-upon price, it could impact the buyer’s mortgage, which could lead to a counter offer.
How to Respond to Counter Offers
Whether you’re a buyer or a seller, receiving a counteroffer can be a bit deflating. Make sure you take the time to fully review every aspect of the counteroffer. Read every part of the offer and fully understand it before responding.
When you respond to the counteroffer before a home inspection or appraisal has been done, make sure you remember this. The inspection or the appraisal could change the offer as new information is gathered by the buyer.
Buying or selling a home can be a stressful process. It’s best to establish a baseline and know when you will walk away from the possible sale. Hire a good Jacksonville real estate agent to help you throughout the process. They will be able to guide you and help you understand any counter offer you receive.