In the last installment we looked at putting an offer on a home and getting a counter offer. Now you have a decision to make.
What To Do When A Counter Offer Is Made
If you have been handed a counter offer to your original offer you have a couple of choices as to what you can do. You can either accept the offer and move into the next stage of purchasing your home. Or you can reject their offer and look for a different home. Or you can counter their offer and continue to negotiate until you all come to an agreeable decision.
Making An Offer Stick
Some people will look at the price of a house and offer some ridiculously low figure, well below what the seller is asking. The theory is that the lower you go the more room you will have for negotiating later. In theory this may seem like a good idea, but it can backfire on you pretty quickly. If you offer an amount that is a lot less than the asking price you risk alienating the sellers. Then they will be less likely to work with you and come to an agreeable figure.
Put Your Best Foot Forward
The best idea, if you are really interested in a home, is to make a reasonable and fair offer based on what you feel the property is worth. This will help the negotiations to move quicker and more smoothly. Also if you really like a home and want to buy it, but put in a lowball offer, there is always the chance that another buyer will come along and put in a higher offer. The seller will take the higher offer and you will lose the house.
Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2008
Tags: home buying, home buying rules, Property, property options Australia, property options blog, property value, property worth, purchase, Real Estate
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Hi Sean,
These are great rules to remember when purchasing your home. I think it’s important to offer whatever you think is a fair and reasonable price for the home. Show the home owner some respect.
I don’t think you have to make all your money on one deal. I think you should leave enough in the offer so both the homeowner and you get something out of the deal.