The negotiating process can involve many different types of counter offers. Sometimes when sellers don’t like an offer, they just choose not to respond and often this is not the best way to handle a lower offer. In this video, I talk about the options you have for countering lower offers and what you need to take into consideration.
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The Counter – What Sellers Need to Know About Negotiating
Hey everyone, I’m Jamey Prezzi Real Estate Agent in Miami Dade and Broward counties and today I’m going to talk to you about what you need to know about countering an offer and a few tips for seller negotiation. Now one thing that I always like to tell sellers is, putting a property on the market can sometimes be a little bit tedious.
We know that a lot of work goes into sort of getting a property market-ready and then we come out and do our thing and then there’s a lot of back and forth and you put the property on the market. You have a lot of people coming in and out and then an offer comes in and it’s not the offer that you wanted.
So one thing that we always tell our sellers is this, work every offer. Countering an offer so important in today’s market because you never know where buyers are coming from any sort of their negotiation tactics. Sometimes it can take us a couple of weeks to work an offer. Sometimes an offer dies immediately, but always make sure that you work every offer.
You never know what buyers may be willing to do. In the past, we’ve negotiated some pretty big differences and worked it all the way to the middle where everyone felt like they were getting a good deal. So make sure that you work every single offer that comes in. Don’t just say no and reject it. Work it. Another thing that I like to remind people is, more time on the market does not necessarily equal a better offer down the road.
So if you have an offer in hand, making an offer on a property can be a little bit tedious for buyers. So if they’ve taken the time with their agent to make an offer on your property, counter it because they are probably very serious about the property. Another thing that you should do when you are considering their offer, if you feel like it might be a little bit too low, make sure that you have your agent run the comps for the market right now because maybe you listed the property four months ago or three months ago, and maybe there have been some recent sales in your neighborhood of comparable properties and that might change the value of your home in the buyer’s mind and the perception today.
So make sure before you just say no, you always go back and run the numbers so you can get an idea if that’s a fair offer or not now. Most appraisers for the lenders they go back over the last three to six months and those are the properties that they use as comps for valuing a home in today’s market. So it’s very important to not rely on numbers from last year. You need to look at what’s going on right now and maybe right now that is the value of the house and if you wait a little bit longer you can be losing even more money.
So it’s very important to run the numbers now. Another thing you can do is ask the buyers to come in at their highest and best. If you’re not interested in countering and you’re like a little bit offended, say look we’re interested in your offer but you gotta come up higher. Give us your highest and best and see what they say. Always make sure that you have a look at the terms of the contract. Maybe they’re not doing an inspection and that’s worth a lot for some people.
Maybe they’re paying all cash and closing in two weeks that’s worth waiting for another buyer down the road that might take two months to close. Always make sure that in addition to the price, you’re looking at the terms of the contract so you fully understand their full offer. Our contracts are about nine pages long. So make sure you look through everything to see it, even though the price might be a little bit lower, the other terms may be a lot more favorable.
And in the end, you can always just counter or reject the offer. So in today’s market buyers are not typically looking at 100 homes. They don’t have time, they’re very time savvy. They usually choose a handful of properties that they’re interested in, and then they start writing an offer on number one their first one.
So if they’ve taken the time to write an offer on your property, be respectful and counter back and you never know you may end up exactly where you wanted to be on the end. If you have more questions about the counter offer and what to expect as a seller, give us a call at 305-793-8965. Always feel free to direct message me on social media and have a great week. Bye.