Have you ever made an offer on a home or received one and thought, “Hmm… this isn’t quite what I had in mind”? You’re not alone! Whether you’re buying or selling a house, the first offer isn’t always the final deal – and that’s where a counteroffer comes in. It’s like a friendly tug-of-war where both sides are trying to meet in the middle.
Understanding how to make or respond to a counter offer can mean the difference between sealing the deal and losing out. And if you’re going the For Sale By Owner (FSBO) route, this is even more important. The good news? FSBO courses can guide you every step of the way so you’re not left scratching your head during this negotiation dance.
Let’s break down how to counter offer like a pro—both as a seller and a buyer—using simple language and smart strategies.
What Is a Counter Offer?
A counteroffer occurs when either the buyer or seller responds to an initial offer by proposing modifications rather than accepting or rejecting it outright. This action reopens negotiations, allowing both parties to explore and agree on revised terms, such as:
- Price
- Closing date
- Contingencies
- Concessions
Counteroffers can go back and forth several times until both parties reach a deal or walk away.
Get expert guidance to sell your home with confidence through a personalized home seller consultation.
For Sellers: How to Respond to a Buyer’s Offer
1. Analyze the Buyer’s Offer Carefully
Look beyond just the price. Consider:
- Financing terms
- Inspection and appraisal contingencies
- Proposed closing date
- Special requests (e.g., furniture, repairs)
2. Decide What to Counter
You may want to revise or push back on:
- Price: If it’s too low, propose a number supported by comps.
- Contingencies: Remove or shorten inspection or financing windows.
- Closing timeline: Adjust to your schedule.
- Concessions: Reduce the amount you’re covering (e.g., closing costs or repairs).
3. Draft a Clear, Professional Response
Your counteroffer should include:
- The exact changes you’re proposing
- Reasons (market comps, your situation, home condition)
- A deadline to keep the process moving
4. Respond Promptly
Respond within 24 hours to maintain negotiation momentum and show you’re serious.
For Buyers: How to Counter a Seller’s Response
1. Reassess Your Position
Ask yourself:
- Is the home worth going higher in price?
- Do I need to keep certain contingencies in place?
- Can I shift the closing date?
2. Make a Strong Counteroffer
Options include:
- Increasing your price (within reason)
- Modifying the inspection or financing timeline
Document everything clearly and include an expiration date to maintain urgency.
Learn the best strategy to price your home.
Best Practices for Both Sellers and Buyers
Always respond in writing: Verbal agreements are not binding. Written counteroffers ensure clarity and legal compliance.
Set an expiration date: Including a deadline prevents delays and gives your counteroffer a sense of urgency.
Stay professional and respectful: Negotiations should remain polite and business-like, not personal.
Know your limits: Have a clear bottom line (lowest acceptable price or maximum closing costs) and be ready to walk away if necessary.
Use market data: Research comparable sales (comps) to support your counteroffer. Being informed puts you on firmer ground.
Manage emotional control: Real estate is a high-stakes field-emotions can cloud judgment. Focus on facts, not feelings.
Negotiation Strategies
Don’t reject outright: Even if the initial offer is low, respond with a counter to stay in communication.
Trade-dollar value: Offer small price adjustments in exchange for concessions in closing dates or costs.
Use contingencies smartly: Removing or adding contingencies can be used as bargaining chips.
Bring emotion when safe: Buyers can include a heartfelt letter to the seller to stand out emotionally-though this comes with risks and should be used carefully.
Check here Different Negotiation Techniques for Buyers
When Negotiations Get Stuck
If back-and-forth stalls:
- Re-evaluate your bottom line.
- Consider sweetening the deal with small non-monetary perks.
- Contemplate walking away if terms won’t work for your situation.
Multiple counteroffers are okay-but if you go beyond three or four rounds, it may indicate a poor match.
Finalizing the Deal
When both sides agree, the contract becomes legally binding. At this point, all agreed terms-including price, closing date, contingencies-must be signed. The deal proceeds to the closing stage once financing, inspections, and any agreed repairs are complete.
Want to Handle Counteroffers Like a Pro?
At Something Different Real Estate, we believe every homeowner and buyer should feel confident and prepared-especially when navigating something as important as a counteroffer. Whether you’re listing your home as For Sale by Owner (FSBO) or making an offer as a buyer, knowledge is your best asset.
How We Help:
- FSBO Courses: We guide sellers step-by-step through the process of listing, pricing, negotiating, and closing a deal without needing a traditional agent.
- Real Estate Training: We offer practical, easy-to-follow courses for buyers and investors, so you understand what’s fair, when to negotiate, and how to protect your interests.
In Conclusion
Counteroffers are a valuable tool in real estate-it’s where deals are made or broken. Being informed, professional, and strategic can help you secure favorable terms. Whether you’re the buyer or seller, use market data, set limits, and stay communicative. If needed, involve an experienced real estate agent or consider getting expert training from Something Different Real Estate.
