Tips for Responding to Counteroffers Over the Asking Price

Sellers coming back with over-asking price counteroffers typically create a lot of drama. Though it may come to a surprise to many buyers, there are many reasons a seller may decline a full price offer. Do you have the right real estate buying tips to help your buyers navigate these shark infested waters?

Take a bite out of emotion

Buyers, who become emotionally attached by picturing themselves in a home, need to be brought back to some rationality, specifically:

• The MLS doesn't guarantee prices like an area superstore; it's a listing service for the industry, holding participants to certain standards, and protecting commissions.
• The owner, not the agency, makes the decision on final sales price.
• You do not know, nor do they have to disclose, the financial situation of the seller.
• The owner may not have 'changed their mind' or thought they could get more following full price offers. Homes are often listed, underpriced, at 5-10% to generate over-asking price offers.
• The seller may have another offer, or be unhappy with the terms.
• The property may be recently listed, generating high-interest.

Must buyers accept?

No. In this awkward situation, created by the seller, they can:

• Walk away.
• Choose to put the offer in a back-up position.
• Decide if it's still an awesome deal.
• Make a strong case for your offer (or counter-offer) with comparative market analysis data.

Life preserver

In future situations, heed these real estate buying tips to prevent such antics. As the old saying about flies and honey: Making a positive impression on the listing agent and seller can work wonders, as can including financing pre-approval with offers – and a brief letter (e.g., The Jones enjoyed viewing your beautiful home and look forward to living in it with their 3 kids...).

To view the original article, visit the Properties Online blog.