Counter Offer Mistakes In Real Estate

By
Real Estate Agent with Amanda Davidson Real Estate Group Brokered By eXp Realty 0225221517
https://activerain.com/droplet/5jvP

Counteroffer Mistakes In Real Estate

Many home buyers, especially first time buyers make counteroffer mistakes. Some believe a seller will always counter and others sit on a counter offer from the seller putting themselves in jeopardy of losing the house.

 

A counteroffer from a seller isn’t guaranteed. Depending on how long the home has been on the market, how many showings there have been, and the seller’s motivation to move they may or may not counter the offer a buyer submits.


Counteroffer Mistakes On New Listings

Homes that are new listings will rarely sell at less than list price. A home that sells within the first week of being on the market was priced at or below fair market value. The market speaks when homes are priced correctly! It’s a risky plan to try to negotiate thinking the seller is going to counter when the home is newly listed.

 

Counter offers are not guaranteed and even if the seller counters there’s another mistake buyers frequently overlook.

 

The Time It Takes To Process A Counter Offer

Time opens the opportunity for another buyer to tour the home and write an offer. It could very likely be a full price offer and even stronger financing or better terms.

 

→The listing agent and seller connect to talk about and analyze the offer

→Seller agrees to counter – the counter can be on price and terms

→The listing agent makes the changes and sends to the seller to sign, the seller may not check email until the next morning to sign

 

→The listing agent receives the signed counter, sends it to the buyer’s agent

 

→Buyer’s agent contacts the buyer to share the counter and discuss the changes. Buyer has to decide whether or not to accept the counter or counter back

 

→Buyer decides to accept

 

→Buyer’s agent sends the contract to the buyer to sign

 

But, wait – there’s a counteroffer mistake about to happen.


Counteroffer Mistakes in Real Estate



Before the buyer signs to accept the sellers counter the listing agent calls the buyer’s agent to share another offer has been received, it’s stronger, and the seller is withdrawing the counter.

 

Poof! There goes the house because too much time passed.

 

Every item above can take hours. The listing agent, seller, buyer agent, and buyer all have work and life happening while handling a counter. They don’t get finalized in the blink of an eye! Because of that emails may sit for an hour or two, phone tag can be played, and then there’s time to consider the counter terms. A day can easily pass before acceptance or counter are delivered back to the seller.

 

Why Is This A Counteroffer Mistake?

Because the odds of you being the only buyer in the marketplace or even the only buyer interested in the home are low. Non-existent in some markets. What you find appealing in a home probably isn’t drastically different for any other home buyer.

 

So, it’s another counter offer mistake to open the opportunity for the seller to have another buyer submit their offer.

 

Just because the seller countered doesn’t mean you’ve secured the house.


Counteroffer Mistakes


24 hours or more is very common when it comes to counter offers. That’s more than enough time for another buyer to write an offer. A strategy the first buyer overlooked because they were hoping to negotiate.

 

Buyers who are looking to save by offering less on a home don’t see that it’s a counteroffer mistake. There was never any savings to be gained if the seller had no intention of accepting a lower offer.

 

Even if the seller countered and was willing to accept a few thousand less it still opens the opportunity for another buyer to come in and secure the home.

 

Don’t be the buyer that makes a counteroffer mistake. Sellers don’t always counter the offer and even if the seller does you can still lose the house if it’s still being shown.

 

**These scenarios don’t apply to every market – market conditions matter. They do however apply directly to my market at the time this post was written

 

Additional Resources:

Mortgage Pre-Approval vs. Mortgage Pre-Qualification

 

How To Buy A Home With No Money Down via Luke Skar of Madison Mortgage



Posted by

 

Amanda Davidson Real Estate Group

 exp realty

 

 

      

 

AMANDA DAVIDSON  
l ASSOCIATE BROKER l  
l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY eXp REALTY l

C  703.431.3755   |   O  703.988.3151  |   W  www.amandadavidson.com

A  20130 Lakeview Center Plaza #400 Ashburn, Va 20147




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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. M.C. Dwyer 05/29/2019 07:47 AM
  2. Sally K. & David L. Hanson 05/31/2019 05:24 AM
  3. Roy Kelley 06/20/2019 01:00 AM
Topic:
Home Buying
Location:
Virginia Fairfax County Alexandria
Tags:
home buying process
negotiation
home buyer tips
counteroffers
counteroffer mistakes
counteroffers in real estate

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Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

M.C. Dwyer thank you so much! Your support and kind comments mean a lot to me. I LOVE your new profile picture, you're beautiful.

May 31, 2019 04:52 AM #48
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Greg Mona I think you make a really important point. It's often over something small in value - spot on advice. A few thousand when we're talking real estate isn't worth losing a home over. Great comment, thank you!

May 31, 2019 04:53 AM #49
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Mary Hutchison, SRES, ABR very true - comps are an important piece of the puzzle. 

May 31, 2019 04:54 AM #50
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Mari Velasquez thank you!

May 31, 2019 04:55 AM #51
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Joan Cox we sure do! Our markets have been swayed towards sellers for years and years. They're not giving their homes away because they know there's another buyer in line!

May 31, 2019 04:55 AM #52
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Debe Maxwell, CRS thank you! I love your verbiage - a slam dunk offer. Yes!! Your listings sell like hot cakes and for top dollar, buyers who wait will be left in the cold. There's just too much demand to delay responding or make a less than desirable offer out of the gate. And your comment made me LOL, they're still mad and you're right. They're mad at themselves! Happy Friday!

May 31, 2019 04:58 AM #53
Rainmaker
3,267,873
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

In our very very much a Sellers market...counters by Buyers are suicide...

May 31, 2019 05:23 AM #54
Rainmaker
5,422,912
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is excellent advice to share. Thanks so much for sharing your experience.

May 31, 2019 06:46 AM #55
Rainmaker
2,309,708
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Excellent article that clearly outlines the mistakes that are often made while making counteroffers. Well done, Amanda.

May 31, 2019 07:56 AM #56
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Sally K. & David L. Hanson yes!! Couldn't agree more. 

May 31, 2019 01:04 PM #57
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Roy Kelley thank you!

May 31, 2019 01:05 PM #58
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Anita Clark thank you so much!

May 31, 2019 01:05 PM #59
Rainmaker
3,209,278
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Amanda I was in a situation this past 40 days where we submitted a great offer and the seller came back with "multiple counter offer" I told my buyer not to think it over but  accept it right away... and we got the house because of that... The agent even said the other offers took longer to get accepted hence ours was the winner...Endre

Jun 01, 2019 11:48 PM #60
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Endre Barath, Jr. a perfect example of not all agents being created equal. You're a true pro and I know your clients are singing your praises!

Jun 02, 2019 02:03 PM #61
Ambassador
4,012,097
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Amanda:

This is certainly a timely topic in today's market, and buyers can easily miss out if they do not act quickly with regard to a counter, just as they can by waiting too long to submit the initial offer. Just as they should not assume they WILL get a counter, they should not assume others might not be equally interested and respond quickly. Great video with a good example.

Jeff

Jun 03, 2019 05:29 PM #62
Rainmaker
1,446,268
Kat Palmiotti
406-270-3667 (MT), 914-419-0270 (NY), Broker in NY with Grand Lux Realty and in MT with (coming soon!) - Kalispell, MT
The House Kat

As markets change, strategies might need to change as well!

Jun 20, 2019 03:09 AM #63
Rainmaker
1,696,637
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

this is a great post to share with buyers who may get overly confident and lose that dream house! 

Jun 26, 2019 05:25 AM #64
Rainmaker
755,482
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

I really like your video. You did a great job explaining what took place.

Jun 26, 2019 06:56 AM #65
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Lise Howe thank you! I hope all is well!

Jun 26, 2019 12:14 PM #66
Rainmaker
1,523,297
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Jill Sackler thank you!

Jun 26, 2019 12:14 PM #67
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