Realtor - Amanda S. Davidson: Counter Offer Mistakes In Real Estate

Counter Offer Mistakes In Real Estate

Counteroffer Mistakes In Real Estate

Many home buyers, especially first time buyers make counteroffer mistakes. Some believe a seller will always counter and others sit on a counter offer from the seller putting themselves in jeopardy of losing the house.

 

A counteroffer from a seller isn’t guaranteed. Depending on how long the home has been on the market, how many showings there have been, and the seller’s motivation to move they may or may not counter the offer a buyer submits.


Counteroffer Mistakes On New Listings

Homes that are new listings will rarely sell at less than list price. A home that sells within the first week of being on the market was priced at or below fair market value. The market speaks when homes are priced correctly! It’s a risky plan to try to negotiate thinking the seller is going to counter when the home is newly listed.

 

Counter offers are not guaranteed and even if the seller counters there’s another mistake buyers frequently overlook.

 

The Time It Takes To Process A Counter Offer

Time opens the opportunity for another buyer to tour the home and write an offer. It could very likely be a full price offer and even stronger financing or better terms.

 

→The listing agent and seller connect to talk about and analyze the offer

→Seller agrees to counter – the counter can be on price and terms

→The listing agent makes the changes and sends to the seller to sign, the seller may not check email until the next morning to sign

 

→The listing agent receives the signed counter, sends it to the buyer’s agent

 

→Buyer’s agent contacts the buyer to share the counter and discuss the changes. Buyer has to decide whether or not to accept the counter or counter back

 

→Buyer decides to accept

 

→Buyer’s agent sends the contract to the buyer to sign

 

But, wait – there’s a counteroffer mistake about to happen.


Counteroffer Mistakes in Real Estate



Before the buyer signs to accept the sellers counter the listing agent calls the buyer’s agent to share another offer has been received, it’s stronger, and the seller is withdrawing the counter.

 

Poof! There goes the house because too much time passed.

 

Every item above can take hours. The listing agent, seller, buyer agent, and buyer all have work and life happening while handling a counter. They don’t get finalized in the blink of an eye! Because of that emails may sit for an hour or two, phone tag can be played, and then there’s time to consider the counter terms. A day can easily pass before acceptance or counter are delivered back to the seller.

 

Why Is This A Counteroffer Mistake?

Because the odds of you being the only buyer in the marketplace or even the only buyer interested in the home are low. Non-existent in some markets. What you find appealing in a home probably isn’t drastically different for any other home buyer.

 

So, it’s another counter offer mistake to open the opportunity for the seller to have another buyer submit their offer.

 

Just because the seller countered doesn’t mean you’ve secured the house.


Counteroffer Mistakes


24 hours or more is very common when it comes to counter offers. That’s more than enough time for another buyer to write an offer. A strategy the first buyer overlooked because they were hoping to negotiate.

 

Buyers who are looking to save by offering less on a home don’t see that it’s a counteroffer mistake. There was never any savings to be gained if the seller had no intention of accepting a lower offer.

 

Even if the seller countered and was willing to accept a few thousand less it still opens the opportunity for another buyer to come in and secure the home.

 

Don’t be the buyer that makes a counteroffer mistake. Sellers don’t always counter the offer and even if the seller does you can still lose the house if it’s still being shown.

 

**These scenarios don’t apply to every market – market conditions matter. They do however apply directly to my market at the time this post was written

 

Additional Resources:

Mortgage Pre-Approval vs. Mortgage Pre-Qualification

 

How To Buy A Home With No Money Down via Luke Skar of Madison Mortgage



 

Amanda Davidson Real Estate Group

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AMANDA DAVIDSON  
l ASSOCIATE BROKER l  
l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY eXp REALTY l

C  703.431.3755   |   O  703.988.3151  |   W  www.amandadavidson.com

A  20130 Lakeview Center Plaza #400 Ashburn, Va 20147




Comment balloon 62 commentsAmanda S. Davidson • May 19 2019 04:09PM

Comments

Good morning Amanda - as always a great treatment of your subject both written and video.  The unfamiliar buyers thinks that everything is a game of lets make a deal but a good agent will guide them properly.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 22 days ago

Good morning Amanda S. Davidson ,

What a great post and so true. Just because the seller countered doesn't mean the buyer has secured the home. Time is of the essence. Until all initials and signatures are obtained and the contract is dated you don't have a binding contract.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) 22 days ago

Good morning, Amanda - it's not over until it's over.  Really "over".  Understanding the ramifications of a counter offer is important.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 22 days ago

We have a form in Texas called Seller's Invitation To Buyer to Submit New Offer. It's not a counter offer, leaving the seller free to accept an offer from another buyer. But it allows the seller to advise the buyer what would make the offer better and more acceptable to the seller.

Posted by Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417, Real Service. Real Results. Real Estate (United Real Estate) 22 days ago

Good morning, Amanda... fantastic post and great illustrations with video. So many people just don't understand the negotiating process and risks of waiting. And it works the other way as well. I often tell sellers not to sit on an offer as a buyer might very well move on to another property.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) 22 days ago

There is more to consider when making an offer and assuming the seller will counter offer anything.  I have seen sellers that receive a lowball offer be so upset by it that they don't even want to sell the house to that person when they make a strong offer, haha.  Emotions play a huge part in selling a home.  I usually try to help people decide on an offer amount that is lower but still has the potential of being accepted without a counter offer.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 22 days ago

Recently our seller made a counter-offer to an anxious buyer, whose buyer's agent told her to wait on it. Too bad, because we had 2 better offers and accepted one of them!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 22 days ago

Hello Amanda,  Counteroffers are always interesting of what both sides want to do.  I wish more would listen to our suggesttions.  Can I reblog this some time?

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 22 days ago

Good advice for buyers to be aware of and understand the market so they make a wise and informed offer to begin with.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 22 days ago

Hi Amanda S. Davidson, it's a mistake for both the buyers and the sellers to wait. I'm working on one right now, my seller clients won't even respond to the counter, it may be too late by the time they're ready.

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 22 days ago

Good morning again Amanda. Your post and your video are just terrific. Great job and right on the money.     Sheila

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 22 days ago

I've had three counteroffers this month. They are still out. So different here than in northern VA.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty) 22 days ago

When I was an agent we never had that kind of hot market. However, we did have a transaction much like you outlined. It was for a vacant lot.

The would-be buyer made an offer and the seller countered. The buyer then decided he should wait for his wife to come home from a vacation and talk it over with her.

He saw(?) and signed the clause that gave the seller the right to accept another offer up until the time the buyer presented a signed acceptance of the counter.

Even though we weren't in a hot market, that's exactly what happened, and the buyer was outraged!

He ranted, raved, and screamed that he was going to sue us until I pointed out his signature on that clause.

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) 22 days ago

Good post, Amanda. I wish more buyers (and sellers) understood this. 

Posted by Monica Hill, the REALTOR to help you discover Delaware (RE/Max Associates) 22 days ago

Great video and post, Amanda! Time is of the essence.

Posted by Ken & Velma | The Rohn Group, REALTORS®, GRI®, Serving Gilbert, SE Maricopa and Pinal Counties (eXp Realty) 22 days ago

Ultimately it is the buyer’s decision however it is the responsibility of the agent to let buyers know the pros and cons about a low offer.

Posted by Jerry Dragoon 21 days ago

I always tell the buyers that when they counter the seller, they are opening themselves up to losing the home to someone else. I let the sellers know the same. They almost always think it’s a sales pitch until they lose the property to someone else or buyers walk! Takes one time and then they get it!

Posted by Carol Tunis, Carol Tunis...a "HouseSold" name! (Florida Homes Realty & Mortgage) 21 days ago

Grant Schneider thank you, I agree the let's make a deal comes into play often and in the current market we're in it just doesn't work. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Dorie Dillard CRS GRI ABR perfectly said! I see how fast your listings are selling and they're a perfect example of why time is of the essence!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Michael Jacobs your comment made me smile, thank you. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417 that's a great tool to have. Sure would send a clear message to the buyer of what they need to offer if they want the property. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Nina Hollander you make a great point that it goes for sellers too. I agree 100%, it holds true for both sides!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Brian England I have seen that too, a perfect example of how expecting a counter can be a mistake. Once the seller feels that way it's an uphill road to try to get the parties to find common ground. Thank you for adding to the conversation!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 ouch! I hope that buyer enlists more competent representation to continue the home search. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Will Hamm I do too, I find that those are serious and committed to buying or selling are always open to listen and apply our advice. Those that aren't are, you can lead a horse to water but ... you're always welcome to reblog any of my posts. Thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Nick Vandekar, 610-203-4543 thank you! Your new profile picture is great, very welcoming and genuine. I love it!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

You are absolutely correct Amanda. I have had newer agents bring me a less than full price offer on a new listing, they lost. I have had buyers who would not take my advice on a new listing and we lost! Great post.

Posted by Chuck Tanner, Associate Broker "Let's Get You Moving" (Keller Williams Realty) 21 days ago

Beth Atalay I agree, it definitely is. Time is of the essence is in our contract and I always say it's there for a reason. I sure hope your sellers respond soon, that can be stressful.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Sheila Anderson thank you so much. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Rebecca Gaujot, Realtor® how markets differ always fascinates me. It's as hard and as fast as you can go here all the time. There's something to be said for a little bit slower although I think it would take me time to adjust!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Marte Cliff I bet that taught him his lesson. Makes me wonder if he read what he signed or not. A great illustration that even if the market isn't on fire all it takes is another buyer to make an offer and everything changes!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Monica Hill thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Ken Rohn, REALTOR®, GRI® it sure is! Thank you. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Carol Tunis you make a great point that it's often perceived as a sales pitch until it actually happens. It can be a hard lesson to learn!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

Chuck Tanner you and me both! It happens and I'm sure will continue to happen but, those who want to secure a home really should avoid it. Thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 21 days ago

If the sellers counter is good, take it!

Posted by Nogui Aramburo, Real Estate Professional in the Raleigh Area (Linda Craft & Team, REALTORS®) 21 days ago

Truer words than ever been said. Great Post! Every buyer should read this Post!

Posted by Diana Dahlberg, Real Estate in Kenosha, WI since 1994 262-308-3563 (1 Month Realty) 21 days ago

In the traditional way o fselling a house, a buyer would use the advice of the his / her realtor. Usually this does not work well.

 

IN the real estate investment market, we rarely see counter offers, at least I don't. Which has worked for me since I get signed RE contracts on 2 out of 8 offers each week.

 

My system really is no different. I explain ALL work that needs to be done to each property and make sure each seller understands the work needed.

 

They do for the most part ALL visit with other investor /  buyers. I eventually get called back to re-visit and get a signed contract. I have used my same method since 2001. We have no reason to change it.

 

Hope this helps.

 

Much Appreciated

 

Robert Hernandez

https://www.robertbuyshousesdfw.com

Posted by Robert Buys Houses DFW, We Buy Houses Fast in Dallas-Fort Worth (Robert Buys Houses DFW) 21 days ago

I always read your posts with eager anticipation because you're spot on - and this post re-affirmed that.    Buyers in my market should be looking over their shoulders as well as in front and to the sides - another buyer could be lurking anywhere these days and they could be motivated!     Reblogging with gratitude!

Posted by M.C. Dwyer, Santa Cruz Mountains Property Specialist (Century 21 Showcase REALTORs) 21 days ago

Great and timely post Amanda S. Davidson!  Sadly, I've seen buyers lose the house they really wanted because of the counter offer scenario where they screwed around for a day or more countering back and forth with the seller when a better offer swooped in and knocked them out of the game. While I/we (collectively) try to explain to our buyer clients that all because you submitted an offer, the counter offer process means you're still not under contract, therefore the home is still up for grabs. Many times the deal is lost over something rather small in value; whether the few thousand more off the sales price, or whatever, when in the final analysis it really wouldn't have mattered that much. And while I singled out buyers here, sellers make their own share of mistakes in the counter offer game.

Posted by Greg Mona, Real Estate in the 21st Century! (Faira Homes Corp) 21 days ago

detailed explaination with a lot of truth.  It should also be mentioned that buyers should review comps with their agent...before making an offer and counter offer!  If comps are reviewed before the initial offer is made, buyer can make a more informed decision along with their agent.

Posted by Mary Hutchison, SRES, ABR, Experienced Agent in Kansas City Metro area (Better Homes and Gardens Real Estate-Kansas City Homes) 21 days ago

Great information, thank you for sharing!

Posted by Mari Velasquez, Real Estate Agent serving central Florida! (Olympus Executive Realty) 21 days ago

Amanda, being a strong listing agent, we do see some funny offers, and wonder what they are thinking.  Some will NEVER see a counter.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 21 days ago

I love M.C. Dwyer's comment - I feel the exact same way! You are always on the same page I am and you obviously are selling real estate - your experiences are always current! 

The market now is such that it's truly best to present a slam-dunk Offer and not have to worry about countering! LOL But, boy, if those sellers counter, TAKE IT! You never now when a new buyer will swoop in and woo the seller...or a buyer who had an Offer in and decides to up the ante on their Offer. Take it, take it, TAKE IT! 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 20 days ago

OH, you and your seller absoultely did what any seller represented by a good agent would have done! They aren't mad at you - they are made because THEY messed up, Amanda! 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 20 days ago

Nogui Aramburo agreed!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Diana Dahlberg thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

M.C. Dwyer thank you so much! Your support and kind comments mean a lot to me. I LOVE your new profile picture, you're beautiful.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Greg Mona I think you make a really important point. It's often over something small in value - spot on advice. A few thousand when we're talking real estate isn't worth losing a home over. Great comment, thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Mary Hutchison, SRES, ABR very true - comps are an important piece of the puzzle. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Mari Velasquez thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Joan Cox we sure do! Our markets have been swayed towards sellers for years and years. They're not giving their homes away because they know there's another buyer in line!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Debe Maxwell, CRS thank you! I love your verbiage - a slam dunk offer. Yes!! Your listings sell like hot cakes and for top dollar, buyers who wait will be left in the cold. There's just too much demand to delay responding or make a less than desirable offer out of the gate. And your comment made me LOL, they're still mad and you're right. They're mad at themselves! Happy Friday!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

In our very very much a Sellers market...counters by Buyers are suicide...

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 19 days ago

This is excellent advice to share. Thanks so much for sharing your experience.

Posted by Roy Kelley (Realty Group Referrals) 19 days ago

Excellent article that clearly outlines the mistakes that are often made while making counteroffers. Well done, Amanda.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) 19 days ago

Sally K. & David L. Hanson yes!! Couldn't agree more. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Roy Kelley thank you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Anita Clark thank you so much!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 19 days ago

Amanda I was in a situation this past 40 days where we submitted a great offer and the seller came back with "multiple counter offer" I told my buyer not to think it over but  accept it right away... and we got the house because of that... The agent even said the other offers took longer to get accepted hence ours was the winner...Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 17 days ago

Endre Barath, Jr. a perfect example of not all agents being created equal. You're a true pro and I know your clients are singing your praises!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) 17 days ago

Hi Amanda:

This is certainly a timely topic in today's market, and buyers can easily miss out if they do not act quickly with regard to a counter, just as they can by waiting too long to submit the initial offer. Just as they should not assume they WILL get a counter, they should not assume others might not be equally interested and respond quickly. Great video with a good example.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) 16 days ago

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