Understanding How to Negotiate the Counteroffer

In many countries of the world, bartering over prices, going counteroffer for counteroffer, is an everyday occurrence. However, America is not one of those countries. We are used to paying whatever the listed price is. That can make the negotiation process very difficult when trying to buy or sell a San Diego house. It is unfamiliar territory, especially since it involves dealing with more money than we are used to dealing with.

A counteroffer is a big part of the process of buying or selling a San Diego house. Here is what you need to know.

Why is there a counteroffer?

If you are interested in buying a San Diego house and made an offer, the sellers have three options: they can accept the offer, they can reject it, or they can give you a counteroffer. When you receive a counteroffer it is because the other party doesn’t agree with some part of the offer that you made. Many times it is the price that is being negotiated, but it can be other things as well. For example, sometimes a San Diego seller needs a faster closing date and tries to include these types of details into the counteroffer.

As the San Diego seller you need to be aware that you could receive a counteroffer while the house is in the escrow process and after an offer has already been accepted. If the original offer includes contingencies on the appraisal and/or inspection of the San Diego house, the buyer can come back to renegotiate with you.

The majority of these counteroffers are going to be based off the results of the San Diego home inspection. The buyer might want to lower their offer due to the condition of the house or they may ask for some of the necessary fixes to be made prior to closing.

On occasion the home appraisal can lead to a new counteroffer. If the San Diego house does not appraise high enough for the lender to write the loan the buyer will need to attempt to negotiate for a lower price.

Responding to a counteroffer

It’s important to remember that you do not have to agree with a counteroffer. With every offer that you receive you are able to decide what is in your best interest with the deal.

If the counteroffer is something that you are willing to live with then you can accept the offer. However, you don’t have to. If the offer is something that is just too much for you, as the buyer or the seller, you are able to walk away from the deal.

There is nothing that says you have to continue negotiating with the other party. There will be other buyers and other San Diego houses.

But, if you want to continue working with the other party, just not on the current terms, you can write a new counteroffer. The goal is to find the middle ground that both parties are able to agree to.

The important thing to keep in mind is that negotiating is a tool to be used no matter if you are buying or selling San Diego real estate. It not some dark art meant only for shady businessmen. Understand the value in negotiating and learn how you can use it to your advantage.