You as the buyer found the perfect home and you are ready to make an offer.  The offer is presented by your Realtor and you are saddened to find out that they are refusing your offer.  You   have decided that you want the home and are ready to offer more or address the concerns that aren’t agreeable to the Seller. The Seller has made a counteroffer to your offer. 

Counteroffers typically address things like changing the total consideration to be paid for the property to a higher price or increasing the size of the earnest money deposit. Other reasons for a counteroffer may be: 

The seller might refuse to pay for certain reports or fees. There are times that a Seller may want the buyer to pay money toward the closing cost. On most real estate contracts there will be a line that will be filled in asking who pays the closing costs. As a seller you may not want to contribute to paying the closing costs which may substantially change what you will net at closing.   The seller or buyer may want a different closing date. The closing date may be quite contradictory to both parties especially if they will be closing on another home. A seller may want to allow a few days after closing to make sure you don’t have the furniture out of the home and the closing does not take place on the day specified on the real estate contract. Amendments might be added to the Contract. It is also possible that the offer itself is basically fine, but there have been agent mistakes. Yes, hate to admit, but we sometimes all make them.

When a seller receives multiple offers:

When a seller sees one offer or multiple offers come in within the first few days of it going on the market, their first reaction is they listed it too low. This sometimes results in the seller holding out on the list price or staying high on the counteroffer price. Sometimes this will work out and the seller gets their price. However, we have seen sellers hold out on the price and the Buyers walk thus the sellers sits with the home and they Sell it later at a lower price.  When you list the home, an experienced real estate agent should have the real estate market prices and trends and should be able to guide you to what the market is warranting.  

When an offer is presented by a buyer, real estate agents must treat all buyers fairly. They must show all offers promptly and in writing to the person selling the house.

Can a real estate agent reveal another offer?

A low initial offer may result in buying the property you desire for less than the listed price or it may result in another buyers higher offer being accepted. Yes, in some cases the seller may instruct the listing agent or broker to disclose an offer to other Buyers on their behalf. This may be done only if the seller instructs the agent to do so!

How many counteroffers is normal?

There are no set number of counteroffers that can be made, we have seen multiple counteroffers. Finding an experienced real estate agent will persevere until all parties are satisfied and you have a meeting of the minds. 

A higher counteroffer to cover closing costs

One reason why a seller’s counter might be over asking price is if the seller wants to fold the closing costs into the home’s price. A higher counteroffer may mean the seller is telling you that he’s not willing to pay the cost of closing but can add it to the price of the home so that it is covered by your mortgage.  It’s one way to get the deal done if the seller likes your offer but your short on cash to pay for all the closing costs. 

Whatever the situation, it’s up to you and your agent to counteroffer until you feel comfortable. It’s always a relief and exciting when you finally settle on the right price for that suits all.  

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THOUGHT FOR THE DAY: Treat your mate as you would want your children’s mate to treat them.