Here's the problem with NOT making a counter offer
When you receive an offer on your home, here is some advice for sellers to consider, especially in today's tough real estate market.
If a buyer has taken the time to meet with their Realtor, put an offer on paper and submit it to your agent, we think you would agree that this is a good sign that they are most likely interested in buying your home.
Your agent calls and says, "great news, we just received an offer!"You meet him/her to review it and you immediately get defensive. The offer is way too low or the terms of the contract aremless than favorable. These terms could include contingencies for getting a loan or another home sale, an extended closing date or a request for you to pay some (or all) of the buyer's closing costs.
Do your best to leave your emotions out of the picture! Consider this a business transaction that, when completed, will get you to your eventual goal of buying your dream home, retiring to a different area, downsizing and buying a less expensive home allowing you to save the money, and the list goes on.
Over the past 26+ years we have been involved in a few transactions with sellers who have absolutely refused to counter a buyer's offer. The vast majority of the time this is the worst thing you can do! If you are thinking that if you do not counter, the buyer will come back with a better offer in a few days you are most likely mistaken. Why would you take the chance of losing an interested buyer when there are many homes for them to choose from? Chances are there's a 2nd (or even 3rd) home out there that could work for them. You may think you have a special home unlike any others on the market but to the buyer there might be another one just around the corner. If priced properly, maybe holding out is the right thing to do, but that is a big risk to take. Make sure holding out for a better offer is worth the risk.
If you have received offers in the most recent past (while listed on the market) that you feel have been too low, perhaps your agent is not being honest with you. There is a high probability that your home is overpriced. If your agent has advised of this and you have refused to listen and agree to a price reduction, then you are missing the chance to get your home sold for the best price with the least amount of hassle. We have seen more sellers that have ended up in foreclosure, short sale, not selling at all or receiving 25% less than an offer they received months earlier because they held out for a better deal. As agents, it's hard to see this happen to our sellers. As selling agnets, it is best for us to walk away from the listing if there is no agreement to reduce the home's price. The ability to sell your home depends on you and your agent working together to achieve the same goal. If you have done your homework and hired a full time, professional and experienced agent, take the time to discuss your concerns with them, they will do the same. Listen to the advice they have given you. This is their REAL job. They eat, breathe and sleep real estate!
They have their finger on the pulse of the market and know what needs to be done to get your home SOLD. A good agent is not in this business to list homes, but to sell them!
Make the counter offer and keep the negotiations moving. This may include changing the price and terms, just the price, or just the terms of the contract. You may have to go back and forth a few times to reach a final agreement, but there is a good chance you will come to an agreement if you and the buyer are reasonable along the way. Not countering an interested buyer's offer is unreasonable!
You may not always like what your agent has to say. It's not your agents' job to agree with you all the time. There are days you will not like us and you'll wonder why you hired us. Ultimately, our job is to sell your house. If that means you getting upset because we give it to you straight, that's ok. You'll thank us and get over it once your home has sold. And you'll be glad we didn't lie to you and tell you your house was worth more than it is.
Stay in the game........negotiate, negotiate, negotiate!!! We hope this helps you stay focused on the ultimate goal of selling your home!
Ron and Kat Becker
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