{"id":8405,"date":"2019-07-04T11:32:30","date_gmt":"2019-07-04T11:32:30","guid":{"rendered":"https:\/\/kenyahomes.co.ke\/blog\/?p=8405"},"modified":"2019-07-05T09:01:48","modified_gmt":"2019-07-05T09:01:48","slug":"the-counteroffer-negotiating-a-real-estate-deal","status":"publish","type":"post","link":"https:\/\/kenyahomes.co.ke\/blog\/the-counteroffer-negotiating-a-real-estate-deal\/","title":{"rendered":"The Counteroffer: Negotiating a real estate deal"},"content":{"rendered":"\n

A lot can happen between an initial offer and closing day. Introducing the counteroffer …<\/p>\n\n\n\n

Note buying a home is rarely as simple as making an offer and paying it. Basically, negotiations can go back and forth for weeks before the seller and buyer are both satisfied.<\/p>\n\n\n\n

Therefore, the tool for this negotiation is the counteroffer which is a rejection and counter to an offer made by either party. Counteroffers are typically handled between real estate agents and are time sensitive.<\/p>\n\n\n\n

Moreover, selling or buying a home is more of a process than a transaction. Hence, it\u2019s important to understand counteroffers before you make your first offer.<\/p>\n\n\n\n

Related: Why You need to Hire a Real Estate Agent<\/a><\/p>\n\n\n\n

Why countered?<\/strong><\/h2>\n\n\n\n

As a home buyer, if you make an offer below list price, the seller may choose to reject or accept. Moreover, if there are multiple offers, the listing agent will lay out the options for their client and then notify all buyers.<\/p>\n\n\n\n

However, sellers may also counter your proposed closing date. If they need to move out quickly, they may want to push it earlier. Additionally, they may also ask to rent the property for a time after the agreement.<\/p>\n\n\n\n

Although price and closing date negotiations are common from both parties, there are even more reasons sellers can potentially get countered.<\/p>\n\n\n\n

The condition of the home is likely the biggest factor here. As home buyers conduct ongoing research into the home, any problems with the condition of the house can result in a counteroffer.<\/p>\n\n\n\n

Appraisals are another reason for counteroffers. If an appraisal comes in below the agreed-upon sale price, it will affect the amount the mortgage company will lend to the buyer.<\/p>\n\n\n\n

Negotiation power<\/strong><\/h2>\n\n\n\n

Furthermore, when reviewing a counteroffer, it\u2019s important to have an experienced real estate agent who can capitalize on your advantages in a negotiation. Both sellers and buyers can take steps to put themselves in an advantageous position through planning and smart counteroffers.<\/p>\n\n\n\n

Remember, knowledge is power in negotiations, so try to gather as much information about the seller or buyer as you can. Your agent will also seek information from the other agent on your behalf.<\/p>\n\n\n\n

Sometimes sellers use the pending sale of their home to finance another, meaning they have a short timeline and could be more eager to make a deal. Similarly, buyers who have terminated a tenancy may be desperate for a place to live and more willing to negotiate.<\/p>\n\n\n\n

If you\u2019re selling a home with known issues, anticipate how these problems may put you at a disadvantage during negotiations. A leaky roof may not be discovered until after buyers order a home inspection. Depending on the cost, they may ask the seller to either fix the roof or deduct the cost of a new roof from the sale price.<\/p>\n\n\n\n

These types of issues put sellers at a distinct disadvantage because they have to either pay for repairs, lower the selling price, or reject the counteroffer and hope the next buyer doesn\u2019t notice or care about repairs.<\/p>\n\n\n\n

This is why it\u2019s worth the money to pay for an inspection before listing a house. Preparation can save you headaches and money down the road.<\/p>\n\n\n\n

Responding to a counteroffer<\/strong><\/h2>\n\n\n\n

If you\u2019ve received a counteroffer as a buyer or a seller, carefully review every aspect. Real estate agents, apart from yours, are under no obligation to ensure you read the full contract. So make sure you read everything carefully before you sign.<\/p>\n\n\n\n

With each individual counteroffer, consider every aspect of the sale, including old and new information. If you made an offer above the list price, there is always the possibility for an appraisal to come in low.<\/p>\n\n\n\n

If you are responding to a counteroffer before an appraisal or inspection, keep those at the forefront of your mind. Prepare yourself for future counteroffers once they are completed.<\/p>\n\n\n\n

Whether you\u2019re selling or buying a home, establish a baseline for when you will walk away from a sale. As a buyer, you don\u2019t want to spend so much on a home that you move in with no cash for improvements and repairs. And as a seller, you should know how much you want to make off the sale.<\/p>\n\n\n\n

With a measured and informed approach, counteroffers can be your friend. Communicate often with your agent\u00a0to let them know what you want from the sale, and never be afraid to\u00a0walk away\u00a0if things go bad.<\/p>\n","protected":false},"excerpt":{"rendered":"

A lot can happen between an initial offer and closing day. Introducing the counteroffer … Note buying a home is rarely as simple as making an offer and paying it. Basically, negotiations can go back and forth for weeks before the seller and buyer are both satisfied. Therefore, the tool for this negotiation is the […]<\/p>\n","protected":false},"author":1,"featured_media":8420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amp_status":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-8405","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"yoast_head":"\nThe Counteroffer: Negotiating a real estate deal - Kenya Homes<\/title>\n<meta name=\"description\" content=\"Negotiations can go back and forth for weeks before the seller and buyer are both satisfied. 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