When to Place a Counter Offer on a Home

In real estate, a counteroffer is an offer made in reaction to a previous offer. It signifies that the buyer and seller are still negotiating. 

As a seller, you must understand when to make this sort of offer because it incorporates a variety of aspects such as price, time, convenience, and so on. In other words, it is in your best advantage to research the current market circumstances and price fluctuations to identify the optimum moment to make this offer and prevent losing the sale. 

Furthermore, as a buyer, you must be aware of such crucial variables to avoid missing out on the current opportunity to acquire a home at the best possible price. 

This article examines some factors that might help buyers and sellers decide whether to make a counteroffer on a home and guarantee that both parties get a good deal.

When Should You Make a Counter Offer on a Home?

Making a counteroffer in a home sale is an important phase in the negotiation process. The following are some important elements that influence when to make a counteroffer on a home:

  • Sales Price

One of the factors that determine when to place a counteroffer on a home is the sales price. When a seller puts a property for sale at a particular price, the buyer has the right to counter the initial price if he or she is not comfortable with the terms. In response, the seller can choose to accept, reject, or counter the offer too. 

This negotiation process can continue until a mutual agreement is finalized. The goal here is to find a win-win solution that benefits both the buyer and the seller, as they have different needs and interests.

  • Home Inspection

This is another factor that influences the decision to place a counteroffer on a home. Generally, home inspection is the evaluation of the physical condition of a property. It is an important process in real estate. During the inspection, the inspector will look at things like the roof, plumbing, electrical system, and other physical conditions of the property. 

However, if the inspector identifies any problem, the buyer has grounds to place a counteroffer on the property. In this situation, the buyer can decide to counteroffer the price of the property in order to reveal the property’s true value or request the seller to fix the problems.

  • Home Appraisal 

The home appraisal is significant in determining when to place a counteroffer on a home. A home appraisal is an estimate of the property value conducted by a professional. If the appraisal comes in lower than or above the purchase price, the buyer can counteroffer the purchase price of the property. 

However, the buyer will have to present the appraisal report to the seller as a piece of evidence. The goal here is to find the actual price that reflects the appraisal value of the property.

  • Market Change

Changes in the real estate market can happen anytime. When this happens, it can have a big impact on the home-buying process, giving room for the buyer to decide to place a counteroffer on a home. 

For example, if the interest rate on a house rises, buyers will need to adjust their budget or reconsider their offer. Moreover, if the market is favorable, sellers will need to adjust their asking price. 

In these cases, a counteroffer can help both parties reach an agreement that takes into account the changing market conditions.

  • Seller’s Motivation

Understanding the seller’s motivation can be another factor that determines when to place a counteroffer on a home. This understanding can give the buyer a big advantage when negotiating a counteroffer. This is because when a seller gets motivated for quick sales, which could be due to several factors, such as relocation, imminent financial problems, or something that needs immediate action; the buyer can craft a counteroffer that meets the seller’s goal or needs.

  • Contingency

In real estate, contingency is a condition that must be met before moving a deal forward. This contingency can include home sale contingency, financial contingency, and so on. However, if the condition is not met, the seller can place a counteroffer on the property.

For instance, if the seller encounters a delay in the process of selling the home, the seller will have to make a counteroffer that extends the closing date.

Final Thoughts

The goal of a counteroffer is to negotiate the initial offer and to find a mutual benefit between the buyer and the seller. However, whether responding to the seller’s initial offer, addressing the problem during the inspection, understanding the seller’s motivation, and so on, effective negotiation is based on clear communication.

However, working with a professional real estate agent can help both buyers and sellers have a smooth drive in the negotiation journey. You can contact Linda Moore today to learn more about purchasing or selling a home in Southern California.

To top ⬆