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Home Seller FAQ 5. Buyers insulted me ? Why should I make a counter offer ?

By
Real Estate Agent with RE/MAX Centre Realtors

Sellers feel insulted when buyers make low ball offers. They love their home and feel it is worth what they are asking. Buyer agents should advice their buyers that when they make a low ball offer they risk not receiving a counter offer. There are many sellers who are not distressed sellers and need not sell the house. It is OK to make a low offer based on comps provided by your agent but if the offer is just based on the theory that you should offer Fifty cents on the Dollar buyers should be prepared to lose the opportunity to buy the house or to come back with a reasonable offer which will get you a counter offer .

My advice to sellers : Do not take it as a personal insult. Buyers get advice from others, read books , newspaper etc or watch TV shows that suggests that homes are selling for fifty cents on the dollar and they truly believe it. They do not trust their agent when the agent suggests a price. The buyer's  agent has to write the agreement of sale and your agent has to present all offers. You can do one of three things when you receive an offer.

a.  Reject the offer and not make any counter offer.

b. Reject the offer but make a counter offer.

c. Accept the offer.

It is a good idea to make a counter offer to keep the negotiations going even if it is asking just a few hundred dollars less than your original price. At the same time make sure you negotiate all the other contingencies mentioned in their offer.

I have found that some sellers forget to address other matters like closing date, items included with the sale, etc. After the price has been agreed on we suddenly find ourselves negotiating closing dates or other buyer requirements.

If you do not make a counter offer you may have to wait to see if the buyer will indeed come back.

You have an emotional investment in your home but buyers do not have any. They are looking to get a bargain. If they are investors they are looking for a steal. You do not have to let them steal it from you but make a small adjustment in price to find out whether they are serious buyers.

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Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

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Comments (51)

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Roy, Thank you for the comment and the picture.

May 20, 2012 04:13 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Amanda,,  I agree. Agents can only suggest and hope buyers and sellers come to a meeting of the minds.

Kathy, It is important for consumers to work with agents who know the market .

Eileen, I have been surprised when they do come up significantly and it then makes it easier to negotiate.

Barbara-Jo, I agree.

Carla, Buyers and sellers should realize that real estate is local .

 I do a lot of research on the internet (not pertaining to real estate) but first read the credentials of the author of the articles.

May 20, 2012 04:21 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

John, When buyers make an offer on a well priced property, they may not have an opportunity for counter offer in some areas where the market is hot.

May 20, 2012 04:23 AM
Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty
Leolinda Realty - Surprise, AZ
Sun City Grand in Surprise Arizona

Negotiating is the key in selling a property. Even if the seller comes back with a full-priced offer, it sends a message to the buyers to be more realistic with their price and terms.

May 20, 2012 04:27 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Leolinda, I agree. I like them to reduce by a small amount rather that full price counter.

May 20, 2012 04:33 AM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Gita - As long as the seller counters the offer, there is the opportunity to reach a meeting of the minds.  Rejecting it outright just doesn't make sense in any situation that I can think of.

May 20, 2012 06:57 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Good Afternoon Gita, Congratulations on your feature. I have enjoyed your FAQ series. Have a great Sunday

May 20, 2012 07:40 AM
Jon Zolsky
FunCoast Realty 386-405-4408 - Ponce Inlet, FL
your Daytona Condo Agent

Gita - very good topic. You are absolutely right when you include non-countering as an option.  It really is. Whether Sellers are emotional or whether buyers are irrational is irrelevant.

We, as professionals, are playing the game here. We know what it is worth, and we know how much the Seller would accept. And not countering is wither a way to get where you want to be, or  way of not wasting time with people who would never get where you want them to get.

I use it often, insisting that my Sellers consider it instead of a weak "Let's keep going" hoping that the guy who is tryingt os teal it for pennies, suddenly would turn a sheep and go up hgh enough.

Also, there are some jerks, that it is better to get rid of them. And yes, we had a few times when the Seller would tell the Buyer to get lost and no offers from that buyer would not be considered.

Why don't we agree that the Sellers have the right to get angry? Let us not forget that they are selling their home, and not their pride?

May 20, 2012 09:28 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

AJ , I agree.

May 20, 2012 09:48 AM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

I'm working through a counteroffer right now where the sellers feel insulted with the offer.  We're countering hoping the buyers will respond.  Wish me luck!

May 20, 2012 12:15 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Gita - I wrote about this just the other day.  Buyers need to decide how much they want the house when they make an offer, and sellers need to try to look unemotionally at offers.

May 20, 2012 12:49 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I set up the expection of receving a low ball offer right up front.  I let the sellers know that this is not a reflection on the home... but the buyers want to "test" the seller.  This has worked very well.. and we have been able to get deals together.

May 20, 2012 12:58 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

I had a seller who was lowballed add to the rejection section "Thanks for the laugh, I always appreciate a good joke."

May 20, 2012 01:07 PM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Gita:

I can understand what the seller's are feeling when they receive a low ball offer.  It is hard for them to ignore the emotional insult.  We must be patient and explain their options.

May 20, 2012 01:53 PM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Gita,

I had worked negotiations in other areas of business, sometimes it's the upbringing and/or culture that leads one to lowball to feel out the other side. 

May 20, 2012 02:34 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Gita, came back to read comments...i love David Halpern's...i'll need to remember that one!

May 20, 2012 09:59 PM
Glenn Freezman
Family Abstract, Inc. - Horsham, PA

Gita, its the hardest thing to take the "Personalty" out of Realty.  Thanks for the post. 

 

Family Abstract

May 21, 2012 02:05 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kay, Good luck. I hope the buyers will accept the counter offer.

Christine, I agree.

Joan, Thanks for the advice.

Dave, Thank you . I will mention it to others.

Evelyn, I can understand the sellers emotions.

Pete, Yes in some cultures they are used to it.

Ginny, I will be sharing it with others.

Glenn, Thanks for reading.

May 21, 2012 02:24 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Great post Gita and timely for me.  I would never allow one of my clients to put a 50 cents on the dollar kind of offer.  It is insulting.  I do the due diligence to find out what the house is correctly price for and then suggest we go in 10-20% below that depending on the competition.  In my estimation you want a rejected first offer otherwise you won't know if you could have gotten it lower.  You want it low to begin with so that you can stay at the table with counters. Thanks for your great blog and well deserved feature

May 22, 2012 01:22 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Unless there are other offers on the table it isn't a good idea (in my book) to straight up reject the lowest of lowballs!  Play with them until it stalls or something better comes along!

May 22, 2012 10:05 AM