Congratulations on receiving an offer on your home.
So how can sellers evaluate and respond to an offer in a way that protects their interests but doesn't send buyers running?
The first thing to remember is that all offers are good. They show that a buyer has chosen your home over the competition in the marketplace. Any offer, regardless of how high, low, or crazy it might be, should be taken as a compliment. Now the harder question - should the seller accept the offer?
When sellers receive an offer on their home they have three choices. They can accept, reject, or counter. While many sellers instinctively counter all offers, wise sellers take a deep breath first. Most view making a counter offer a natural part of the sales process, but they are really rejecting the buyer's offer then presenting a new offer back. They risk releasing the buyer from the deal. In many cases the risk may not be worth the reward.
If the seller must make a counteroffer they should keep these three tips in mind:
1)Attempt to understand the buyer's position
A negotiation is never a one way street. In order to create a sale, both parties must feel they are receiving a good deal. Learn as much about the buyer, including their background and reasons for making their initial offer, as possible. In doing so it may be possible to find common ground that nurtures a successful sale.
2) Use the give and take technique
When making a counter offer sellers should think not only what they want, but what they would be willing to give up to make the sale happen. For instance, if sellers are asking for a higher price, perhaps they can help pay the buyer's closing costs or pay points to help the buyer secure lower payments?
3) Emphasize the positives
In writing the counter offer I first emphasize all of the areas that buyer and seller agree on before requesting modifications. For instance, I point out all the areas of the original offer that are acceptable. This might include the closing date, the possession date, the down payment, the inclusions and exclusions, the financing type, specific conditions or contingencies. Then I list the areas of negotiation. This helps both parties see how close they really are to making this deal a reality and helps improve the likelihood that a deal can be struck.
Joseph SchutzExit Ryan Scott RealtyFt Lauderdale, FLhttp://JoeSellsFtLauderdale.com