The Counter Offer – Negotiation Strategies for Sellers

When selling your home, receiving your first offer can be quite exciting. However, that excitement can quickly fade when you realize the offer is not what you were expecting. Be it a lower offer, or terms that are unfavorable, there are many reasons why an offer might not be something you want to accept- especially if it’s your first offer. That being said, an offer with less-than-satisfactory terms doesn’t have to be the end of the road: that’s where negotiation comes into play. It will be up to you and your agent to determine which strategy is best for proceeding with an initial offer. Here are a few strategies to help you plan your course of action, and potentially change the terms into something you can happily accept.

 

When a seller receives a low-price offer, the most common approach is to simply send the buyer a counteroffer. Depending on the difference between what they initially offered and what you would like to receive, this is where a seller can offer a compromise price or terms that “meet in the middle”, hopefully satisfying both parties. When negotiating a counteroffer, remember that it is important to be flexible. If you want to increase the offer price, perhaps allowing for more lenient terms for the buyer such as paying some of the closing costs or adding in some of the furniture or appliances could help make the deal more appealing to the buyer.

 

For those who want to avoid the time and effort that can come with back-and-forth negotiations as both parties try to find an acceptable middle ground, placing a “highest and best” request is a way to prompt all interested buying parties to submit a new offer that gives their highest value and best terms. This is especially useful when you have multiple offers on the table, but none are acceptable. Asking for the highest and best can help motivate those buyers to promptly submit their best offer. While a seller may be asked “What’s your bottom dollar?” this is the equivalent of asking the buyer “What’s your top dollar?”

 

There’s more to offers than just the price, allowing for several ways to negotiate. Timelines, such as a longer escrow, or adding furniture, can appeal to some buyers and help make them more willing to up the dollar value of their offer.

 

One of the oldest tricks in negotiation is maintaining your ability to walk away from offers whose terms simply are not acceptable. Sellers are not obligated to counteroffer, especially if the offer is far below acceptable. Sellers can reject offers completely. Sometimes, this outright rejection will motivate the buyer to reconsider, and send a second, improved, offer- beginning the negotiation process without taking up any of your time.

 

Selling your home is a big financial decision, so it pays to take the time and prepare yourself for the process involved. If you want to get top dollar for your home, don’t be afraid to negotiate the terms with interested buyers- even if their initial offers are underwhelming. The right approach to negotiation- and a good agent on your side- can help turn a lackluster offer into a deal you’ll be happy to accept.