To Counter or Not To Counter
When an offer is made to purchase real estate, an owner can usually do one of three things. He may accept, he may reject or he may make a counter offer. What determines the wisest course of action for a seller?
Some managers teach their agents to counter all offers, no matter how low they are. This portrays the seller as anxious, eager and ripe for low offers. This perception by a buyer is damaging to a seller’s ability to obtain a fair price. In my opinion, there is a time to simply reject, with no counter. whatsoever. And there is a time to counter ! What is the determining factor ? If the buyer and the seller are more than 10 % apart in terms of price I would recommend that the seller simply reject the offer rather than counter it. Why ? My thinking is that the buyer must show that he or she is acting in good faith and is willing to pay a reasonable price. If the buyer refuses to move up under these circumstances then the seller should simply move on down the road and not look back. If the buyer then increases his offer as a result of the rejection , the seller will have to analyze whether it is then acceptable or whether a counter would be appropriate. As a seller you should be fully aware of your options and your negotiations should be conducted with your best interest at heart. Agents and brokers will advise( and their opinions should be considered), but you are the one who has to make the decision whether to accept, reject or counter-and that decision must be one that makes sense and is logical in view of the circumstances!
