How do you respond to counteroffers?

1 Understand the seller's motivation

The first step to responding to a counteroffer is to understand why the seller made it. What are their goals, needs, and expectations? How flexible are they on the price and other terms? How much competition do they have from other buyers? You can use this information to craft a strategy that addresses their concerns and shows them the value of your offer. For example, if the seller is in a hurry to sell, you can offer a faster closing date or waive some contingencies. If the seller is holding out for a higher price, you can highlight the benefits of your financing, inspection, or appraisal.

2 Communicate with your clients

The second step to responding to a counteroffer is to communicate with your clients and explain the pros and cons of accepting, rejecting, or making a new offer. Your clients may have different reactions to the counteroffer, depending on their budget, timeline, and emotions. Some may be willing to compromise, while others may be discouraged or frustrated. You need to educate them on the market conditions, the seller's position, and the potential outcomes of each option. You also need to listen to their feedback and respect their preferences and goals. Your role is to guide them, not pressure them.

3 Prepare a strong response

The third step to responding to a counteroffer is to prepare a strong response that reflects your clients' best interests and moves the negotiation forward. You can either accept the counteroffer, reject it, or make a new counteroffer. Whichever option you choose, you need to justify it with facts, evidence, and logic. For example, if you accept the counteroffer, you need to show how it meets your clients' needs and expectations. If you reject it, you need to explain why it is unreasonable or unacceptable. If you make a new counteroffer, you need to show how it is fair and realistic.

4 Be respectful and professional

The fourth step to responding to a counteroffer is to be respectful and professional in your communication with the seller and their agent. Remember that negotiation is not a war, but a collaboration. You want to build trust and rapport, not antagonize or offend. You also want to avoid emotional or personal attacks, ultimatums, or threats. Instead, use positive and polite language, acknowledge the seller's perspective, and express your willingness to work together. You can also use compliments, humor, or empathy to diffuse tension and create rapport.

5 Review the details carefully

The fifth step to responding to a counteroffer is to review the details carefully before signing anything. Make sure that you understand all the terms and conditions of the counteroffer, and that they match what you agreed on verbally or in writing. Look for any errors, omissions, or ambiguities that could cause problems later. If you have any questions or concerns, ask for clarification or verification. You also need to check the deadlines and contingencies of the counteroffer, and make sure that you can meet them. If you need more time or information, ask for an extension or a contingency release.

6 Celebrate your success

The sixth and final step to responding to a counteroffer is to celebrate your success with your clients. If you reach an agreement with the seller, congratulate your clients and express your excitement and satisfaction. You can also send them a gift, a card, or a testimonial request to show your appreciation and strengthen your relationship. If you don't reach an agreement with the seller, reassure your clients and encourage them to keep looking. You can also offer them feedback, advice, or referrals to help them find their dream home.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?