How to Make a Counter Offer on a House

Buying a home requires patience and some negotiation. When your offer is countered by a seller, knowing how to submit your own counter offer can save you thousands of dollars.

Buying a home is a negotiation. When a seller places a home on the market, he lists the home at the price he would like to sell it. Often, buyers will submit an offer that is below the asking price and ask that the seller make concessions such as paying some or all of the closing costs associated with the purchase. When a seller doesn't reject an offer outright but renegotiates the terms, it's called a counter offer. Buyers can also make counter offers if the seller's counter offer is close to what they are looking for.

Instructions

1. Research the values of the comparable homes in the area. The "true" or market value of a home is measured by averaging the selling price of homes similar in design in the neighborhood. When countering a seller's counter offer, take into account the selling price of comparable homes in order to give credibility to your offer price.

2. Understand the seller's circumstances. In most cases, a real estate agent will know a little bit about the seller's motivations when it comes to why they are selling the home. Are they looking to buy a larger home? Are they relocating due to employment? If a seller has a pressing reason to sell the home, the success of a lower counter offer is greater than if the seller is simply looking to upsize. Take these variables into account before attempting to counter.

3. Don't insult the seller. When countering as a buyer, one of the best moves is to stay within 5 percent of the seller's counter offer. The goal is to a reach a mutually agreeable price on the house. Understanding that you will have to make concessions on your side to make the deal work is paramount to being successful.

4. Create your counter offer and submit it to the seller. The easiest way to do this is to use a real estate agent; however, buyers can submit counter offers directly to the seller if the neither the seller nor the buyer is being represented by an agent.

References

• For Sale By Owner: Selling Tips
• Judy Rockensock: Sellers