how does a counter offer work?

Asked by Mini, San Jose, CA Mon Jun 30, 2008

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Scott Sulliv…, Agent, Redmond, WA
Mon Jun 30, 2008
BEST ANSWER
Mini,

A counter offer is used when you receive an offer from the other party (buyer or seller) and you decide you do not want to accept the offer as is and wish to change something about the offer. The entire process starts when a buyer submits a purchase and sales agreement to purchase a home. When it is submitted to the seller the seller can do one of three things: a) accept the offer as is; b) reject the offer; c) make a counter offer.

In my example the seller decides he doesn't like the price being offered and does not want to provide a home warranty requested by the buyer, so the seller submits a counter offer with a new price and strikes the request for the home warranty. The buyer now has to decide whether to accept the offer, reject the offer, or make another counter offer. The process continues until both parties accept the last counter offer or someone rejects the last counter offer and does not submit another counter offer.

The process can get a little difficult to keep track of, but most good Realtors have forms they use to track the counter offers which require signatures of both parties for acceptance.

Good luck in your home search!

Scott Sullivan
Prudential Network Realty
Orange Park, FL
C: (904) 327-5676
O: (904) 269-1716
Scott.Sullivan@PrudentialNetworkRealty.com
2 votes
Ailynne PeBe…, , San Leandro, CA
Fri Jul 4, 2008
Are you represented by a REALTOR... they should explain to you the process.... Counter offer is another negotiation when it regards to terms of the purchase. It could be negotiation about the price (seller might want more money from you if your the buyer), it could also be the number of days they want to close the transaction, it could also be furniture or appliances that you wanted in the house you are purchasing... alot more stuff... Mainly it is negotiating the terms to make the sale happen
1 vote
Betina Forem…, Agent, Austin, TX
Wed Oct 29, 2008
Make sure you have any and all changes initialed by all the parties that signed the contract. Remember do not leave any blanks on the contract. Good Luck!
Betina Foreman, Realtor Austin Texas
Web Reference:  http://www.BetinaForeman.com
0 votes
Don Tepper, Agent, Burke, VA
Wed Jul 16, 2008
One additional point to keep in mind: When one party makes a counter offer, the initial offer is dead; it's no longer operative. So, let's say the buyer makes an offer. The seller counters. But, a day later the seller reconsiders and decides the buyer's offer is acceptable. Too late: Once the seller countered, the buyer's offer was no longer in effect. So there sometimes can be a danger in countering if the item being countered really is insignificant.
0 votes
Don Tepper, Agent, Burke, VA
Wed Jul 16, 2008
One additional point to keep in mind: When one party makes a counter offer, the initial offer is dead; it's no longer operative. So, let's say the buyer makes an offer. The seller counters. But, a day later the seller reconsiders and decides the buyer's offer is acceptable. Too late: Once the seller countered, the buyer's offer was no longer in effect. So there sometimes can be a danger in countering if the item being countered really is insignificant.
0 votes
Katie Cotter, Agent, Seal Beach, CA
Wed Jul 16, 2008
Dear Mini:

When you make an offer on a property -- you map out the terms.

Seller of the property, might prefer to change some of those terms -- so they "counter, offer" on the few things they want to change.

You can accept those "changes" or you can "counter" their terms.

That's how you negotiate.

Here's a couple of tips, though:

If there's more than one offer, seller and "counter" all of you and still choose WHICH offer they like better -- it's called a mulitple counteroffer. Your agent should be able to help you with that.

Also -- when you're "countering" all the of terms NOT mentioned stay the same. The only terms you're negotiating are the ones written on the counter...

Good luck with tyour buying!

Katie Cotter
0 votes
Michael Barr…, Agent, Irvine, CA
Mon Jun 30, 2008
Hi Mini, are you a buyer or seller?
But you counter on terms that you wish and it goes back to the other party in the transaction.

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6917
michael-barron@sbcglobal.net
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Jun 30, 2008
You respond back to the seller terms and conditions, reach a happy medium between both parties.
http://www.lynn911.com
0 votes
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