Special offer

Counter - Intuitive!

By
Real Estate Agent with Compass Real Estate SP98362422

OK.... I have recently submitted 2 awesome CASH offers on behalf of 2 different buyer clients only to be told to "pound sand" in so many words.... Both offers were for above the tax value of the properties in question, and had very few contingencies (buyers were bending over backwards to accomodate the seller in every way possible except that in both cases the offers were not full price).

Here is my deal--- there are very few reasons in my mind for a seller not to counter at all! You have a FISH on the LINE! Someone out there likes your property- counter at $1 less than asking price if you must, but please counter!!!! The buyer is offering what they want to pay for your property and it is the Buyers in the end that determine the sales price.

Perhaps the first offer from a buyer is not the best and final offer they would make, but if a seller says "thanks but no thanks" and doesn't counter, one may never know what the buyer would have come up with if the two sides had gone back and forth just a bit.

You the seller, are free to disagree, but please consider a counter offer- Don't be insulted by a lower offer than you wanted- be motivated to try to show the buyer why you think the house should sell at a higher $ and try to work with them....

Whew, I feel better....

Posted by

Ellie Shorb, Realtor, Compass, 240-338-8919 Licensed in DC, MD, VA

A luxury home specialist specializing in exemplary client care, professionalism & privacy.

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David Saks
Memphis, TN
Broker / Industry Analyst

First time in all of my years in the business that I've ever heard it said that "the buyer determines the sales price".....In the "end" the seller agrees to the sales price.

Feb 15, 2010 07:27 AM
Ellie Shorb
Compass Real Estate - Chevy Chase, MD
Realtor DC, MD & VA Luxury Home Expert

David: Of course you are right that the seller must agree, but it is the buyer that makes the offer that is accepted or declined... I feel that real estate is a commodity (not unlike stocks) where if a home is going to sell for "x" price, it is the buyer who agrees to that (or not) - the seller can ask whatever price he/she sees fit, but only the buyer determines if the asking price is reasonable in that market, at that time....

Feb 15, 2010 10:08 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Ellie - I love your title! Counter-Intuitive - You are so funny! Okay - I agree completely with your argument that sellers should counter - I had a seller refuse to counter our offer which was also VERY reasonable - because they didn't like the offer price, the settlement date, or the fact that we wanted the seller to leave the book case - the buyer came back with  a different settlement date, dropped the book case request, and left the price the same - happily then the seller was ready then to start negotiating on price ... finally - I felt the same way - there had to be areas of common agreement that we could get off the table so it looked like we were moving forward.  Maybe if there are issues other than price that they disagreed on, then you can work on those and then nibble away at price.

Feb 15, 2010 12:51 PM
Team Honeycutt
Allen Tate - Concord, NC

I agree. Always try to keep things going back and forth. Sometimes that low offer was just a "fishing expedition". They didn't mean to offend and will most likkely be able to negotiate a decent offer.

Feb 17, 2010 07:30 AM
Ellie Shorb
Compass Real Estate - Chevy Chase, MD
Realtor DC, MD & VA Luxury Home Expert

Team Honeycutt: You are right, this all cash offer with the HUGE earnest $ deposit was well above tax value for the property in question. It was not, in my mind, a real lowball offer, but in fact a very fair starting point. We were offering a significantly higher amt than the last reacent sale in the neighborhood as well... For sure it was not a fishing expedition but a thoughtful first offer.... Ugh!

Feb 17, 2010 09:01 AM