When purchasing a home, the whole buying and selling process usually begins with an initial offer, either from the seller or the buyer. However, it is not usual that with a single offer both parties agree and the sale is successfully closed. In fact, negotiations between seller and buyer can take days, weeks or even months.
The vehicle to carry out this negotiation is the counteroffer, a new offer launched through a real estate counteroffer letter by one of the parties that contradicts the first offer. The most common is to manage the negotiation process through experts in the real estate sector, such as real estate agents who know how to lower the price of a house and how to negotiate the purchase of the apartment. Undoubtedly, the best option to successfully reach an agreement between the buyer and the seller is to use the services of a good real estate consultancy that has professional experts in these matters, and who know the vicissitudes of the real estate market. In any case, it is essential to know how to make a counteroffer.
Why make a counteroffer?
Buyers usually make a counteroffer once they have seen the property and checked its condition. In any case, it is very common not only to negotiate the price of the property, but also the closing dates in a sale and purchase process. In addition, it must be taken into account that the most common thing is that sellers offer higher prices than those of the market, since they count on the possible counter-offers that buyers will make to lower said price.
This means that making a counteroffer may not only mean getting a more attractive price to purchase the property, but also getting closer closing dates for the sale and purchase process, so that the seller does not have to wait a long time to move into their new home.
In any case, it should be noted that, if the counteroffer is well below the price offered, the seller will most often reject itThis is especially true if you have the advice of a real estate agent, who will filter the best offers for your client and put him in contact with the best bidders.
Keys to negotiating and presenting a real estate counteroffer
Buying a home is not a simple process, since it is not enough to establish a price and assume that both parties will agree with the terms of the transaction. The most usual thing is that a negotiation process takes place in which it is essential to know some keys to know how to negotiate the price of a house and to present a real estate counteroffer letter, and to reach a successful agreement on the purchase and sale of the property.
In order to obtain a fair price for the property and make a counteroffer that can be accepted by the seller, it is convenient to take into account some key factors. They are as follows.
Take into account the condition of the house
The first thing to do is to visit the property to check its condition and whether it meets all the requirements. Once the buyer has verified that the property is in good condition, it is essential to offer a fair price that corresponds to the condition of the property.
Determine a budget for the purchase of the house.
Before negotiating with the seller, it is important to determine a budget for the home purchase that fits the seller’s personal finances. It is essential to set the maximum price that could be paid for the property.
However, most buyers will need to apply for a mortgage in order to be able to pay for the property. It must be taken into account that the mortgage installments must be paid and that, in any case, the buyer must be able to pay the down payment for the house, which is usually between 20% and 30% of the value of the house.
Make a reasonable counteroffer
Once the actual value of the property is known and the maximum price the buyer is willing to pay has been determined, the buyer should make a counteroffer that is fair and reasonable to both the buyer and the seller.
Thus, if the buyer makes a counteroffer below the market price of the property, it is very likely that the seller will not want to close the transaction.
Determines time limits
The seller may want to drag out the negotiation process while waiting for new sellers to come along who are willing to pay more for the home. This is why it is of vital importance that the buyer determines time limits for the negotiation process, so that it is effective and does not take too long.
Usually a margin of 4 to 6 days is given for the seller to analyze and decide whether or not to accept the buyer’s counteroffer.
In any case, for a successful sale and purchase process it is important to have the services of experts in the real estate market who know how to guide both parties throughout the process. Knowing how to make a real estate counteroffer is very important to get a better price, so if you have questions about this issue, from Inversión Madrid we offer you the best real estate advice in the market.
