Evaluating and Responding to Different Offers
Good job- you finally got an offer on your home. Now how do you know if the offer is in your best interest, and your counter offer won't send the potential buyer running for the hills. To begin with, any offer is a good offer. You may not believe this but this is true because it shows that the buyer has chosen your home over the entire competition in the market. Any offer then in this case, no matter how high or low should be taken as a compliment. Now the real question is should you accept this offer?
You have three choices as a seller. The first is to accept, which is subject to the terms and conditions of the sale, your home is officially sold. The second option is to reject the offer, which kindly tells to buyer no thank you. The third and final option is to make a counter offer. Wise sellers take time to strategically think and plan their counter offer. Do not instinctively reach for a pen to throw out a counter offer number.
A good portion of sellers consider counter offers a natural part of the selling process. Really all it is is presenting a new offer to the buyer. The only negative part of this is you may lose the buyer. Because of this successful sellers have to ask themselves if it is really worth a counter offer? The simple question should be a measuring stick with which to evaluate every item you plan to ask for from a buyer. In many cases, the risk is not worth the reward, but it is important to remember with great risk comes great reward.
If you make a counter offer make sure to use these three tips.
1. Try to understand the buyer's position- Negotiation is always a two lane road. In order to create a deal both parties must feel they have come out on the winning end. Learn as much about the buyer as you can, like why they made the initial offer they did. By doing so you could possibly find some common ground that can create a successful sale.
2. Use the give and take technique- When making the counter offer, think in terms of not only what you want, but what you might be willing to give up to make the sale happen. For example, if you are asking for a higher price than the buyer is willing to pay, try to offer to paying their closing costs.
3. Emphasize the positives- When you are writing your counter offer be sure the emphasize the areas both parties agree on before asking for modifications. For instance, make notice of all the areas from the original offer that are acceptable. These might include the closing date, possession date, inclusions and exclusions, the financing type, specific conditions, or something as simple as the size of the payment.
Taking the time to evaluate and analyze each offer you can come up with a negotiation strategy. If you do this with no emotional ties, you will be far ahead of your competition in the marketplace.