Homebuyers frequently make a counteroffer error. When it comes to making offers, first-time house buyers are considerably more likely to make errors. Some purchasers believe it is OK to try to negotiate a home’s sales price because they believe the seller will counter their offer until both sides are satisfied with the price.
Buyers who engage in protracted discussions risk losing the house they are attempting to purchase. Learn more about one of the most common counteroffer mistakes made by house buyers during negotiations.
Don’t Make This Counteroffer Mistake for a New Home Listing
The number of days on the market does not always affect the sale price. Many homes that have been on the market for three months or more sell for the asking price.
New listings, on the other hand, rarely sell for less than the asked price when they sell inside the first week. This shows that price was fair market value. It is for this reason that it is not always a smart idea to try to bargain and expect the seller to challenge the offer on a new listing. Another strong reason to avoid negotiating is one that is sometimes neglected.
If you’re a buyer looking to buy a house in a seller’s market, you’re not the only one. Your tastes in a house are likely to be similar to those of any other home buyer. It’s reasonable to assume that if you’re in love with a property, another buyer will be as well.
Another Blog to Read: What Is A Best And Final Offer
Process and Time Involved
Here is a breakdown of how negotiations can turn against you if you take too long:
- Over the phone or by email, the listing agent and seller discuss the details of your offer.
- The seller tells the listing agent to create a counter-offer. Other issues can be included in the counter, according to the agent. These may be issues that both parties would have ignored if the buyer’s offer had been accepted in its whole, but because the seller wants to respond, they are included.
- The listing agent sends the counteroffer to the seller for signing, who has now gone out to dinner and will not check their email until next morning.
- When the realtor receives the signed counter from the seller, she emails the counteroffer to the buyer’s agent, who is attending their son’s soccer game for the afternoon.
- Later that afternoon, the buyer’s agent calls to discuss the counteroffer terms. They discuss whether the buyer should accept the terms and conditions of the counteroffer or issue a second counteroffer.
- More often than not, the buyer accepts the terms of the counteroffer.
- Meanwhile, another buyer has submitted an offer for the realtor’s asking price to the real estate broker.
- The listing agent tells the buyer’s agent that a better offer has received and that the seller is withdrawing the counter to their offer before the buyer’s agent can prepare the document.
In this case, a long time has passed. Another buyer has plenty of time to submit a full-price offer in twenty-four hours. Instead of competing in a seller’s market, the initial buyer might have used this strategy.
Do not believe an agent who tells you the seller will always counter the offer. Even if the seller does, you can still lose the house if the home is still getting showings.
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