In the process of selling one’s Collingwood home, there is always the possibility of receiving offers from potential buyers that do not live up to initial expectations. When this occurs, it is essential to consult with one’s real estate agent and put a lot of thought into how to approach countering the offer. In an effort to move closer to one’s desired closing price with a level of professionalism, it is important, as the seller, to remain calm while also acting with a sense of determination. There are a few critical methods of countering an offer that can be highly effective. Choosing which one is right for a given situation can make a difference in securing a beneficial deal for both buyer and seller.
Countering at Original Asking Price
While some sellers, for fear of losing a sale, may feel compelled to settle for a drastically lower price than originally desired, there is a way to maintain reasonable expectations and still procure a smooth sale. Insisting on the original listing price, or something only slightly lower, is not a turnoff to serious buyers and can prevent a homeowner from settling too early on an unfair price. Unless a homeowner has unique circumstances and must sell as fast as possible, even if it means a severe loss of compensation for the value, waiting out for a buyer willing to pay, at least somewhere near the asking price, is usually the best plan.
A more daring strategy, homeowners selling their properties can choose to simply reject an offer without offering an alternative price at all. This puts the next move in the hands of the offerer, requesting another, better offer. As mentioned above, serious buyers are highly motivated and may be prompted to turn in a more beneficial proposition.
Creation of a Bidding War
Another way of responding to a home offer is a psychological tactic to increase pressure to agree to a higher closing price. When multiple offers are submitted, the seller can initiate a bidding competition between the interested parties. The seller uses other received offers as their countering response to those who bid lower to get genuinely interested individuals to reach a higher price.
Adding in an Expiration Date
In addition to the chosen method of countering, it can be helpful for sellers to express a clear expiration date for their counter price or terms. This is a preventative measure to move the process along and keep the negotiations from taking up too much time. The potential buyer can either accept or decline, allowing the seller to move on either way. It is useful for sellers to keep in mind that the state of being in negotiations essentially puts a hold on receiving outside offers, reinforcing that time is of the essence.