The Significance of Counter Offers

In declining or slowing real estate markets, even though sellers are thrilled to receive a purchase offer, many sellers are not satisfied with the terms and will issue counter offers.

The number of counter offers that go back and forth during negotiations depends on the market temperature. If the market is hot and the property is priced right, the seller might write one counter. Under these circumstances, the buyer will likely accept the counter for fear of losing the home to another buyer. If the market is falling, though, there may be little competition for the property because there are fewer buyers, so negotiations can go back and forth for a long time.

Most counter offers contain a provision that will let the seller accept another offer while the buyer is deciding whether to accept the counter, reject it or issue a second counter offer. Many of my transactions involve a multitude of counter offers before a final acceptance or rejection takes place . . . read more about Counter Offers.

More Articles by Elizabeth Weintraub, click below:

• Dealing with Full-Price Counter Offers
  
• Making Lowball Offers
  
• Competing wth Multiple Counter Offers

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