You have finally received an offer on your Windsor house that is on the market. And while it’s not the amount you were hoping for, it warrants a counter offer.
Every day in the real instate industry, agents are in negotiations to find the best deals for their clients. During these often delicate talks, it’s important for buyers and sellers to keep their emotions at bay and work with their agents, as this is when deals can be made or broken.
For sellers, this is often a stressful and emotional time. Many need to sell their homes quickly and they depend on a good offer so they can move on. I always advise sellers to try and distant themselves from the emotional pull they have towards their home. It is natural that buyers point out the home’s imperfections, after all, they want a good deal as well, so sellers need to sit back and think rationally and make a counter offer they feel comfortable with.
Sellers: Pay attention to
1. The buyer: Sometimes this can work to your advantage during a counteroffer. Maybe the buyer is moving into the area because of a job transfer or school is starting soon and they will want to close the deal quickly.
2. Property values: Don’t forget to add in any remodeling or updates you did to your home, but remember, your counteroffer that is too high can force the buyer to walk away.
3. Incentives: Whenever incentives are added, buyers perk up. These can include closing at an earlier or later date or whatever appeals to the buyer, purchasing a home warranty, assisting with closing costs or including furniture.
4. Real estate agent: Be willing to sit down and meet with your real estate before you have any firm counteroffer in mind. Agents have the professional experience with negotiations and can give you their opinion on your chances of making a winning counteroffer. They can also let you know if you risk ending the deal all together. Remember, this is what you are paying your agent for: their expertise.
5. Taking your time: When dealing with a counteroffer, take an extra day or two if allowable (if buyers don’t require a specific time frame for a response). There may be other offers coming in, but it also allows the buyers to think about their offer as well. A brief waiting period, maybe even cooling off period, gives you time to consider all of your options.
6. Make your counteroffer: Then its wait and see and this is always the hardest part in the real estate process.
The key to remember is for sellers to stay rational. Again, it’s a very emotional process when you hear a buyer dissecting your property and counting every flaw, but that’s the nature of the business. Take into consideration that if the home is priced right, it will sell. When interest in your property is high, then the home is priced according to market. And remember, if it’s the lowest price home in your neighbourhood, buyers will often fight for it.
And sellers don’t automatically reject an offer by countering at full price if an offer is made when the home is just listed. Believe it or not, based on years experience, the first offer received on a home is usually the best. But sellers often feel that if they just wait a little longer for a better offer, it will come. Treat every offer seriously unless it’s such a low-ball offer that even your agent has a good laugh.
When counter offers go back and forth, sellers will on occasion suffer seller’s remorse when they know that they will actually be moving and leaving a home that they love. When this happens, sellers will often offer a counter price so high that the buyer will just walk away.
If you feel that selling your house is now a mistake, talk with your real estate agent. Often these feelings are only temporary when a seller realizes that they are in fact really ready to downsize or move closer to their children or even take that job in another part of the country. And while seller’s remorse is not common, it does happen. The key is to emotionally separate yourself from the home once you decide to put it on the market. When this happens, negotiations can run more smoothly and cooler heads prevail.