Essentially, your options are to:<\/p>\n
- \n
- Keep negotiations going to the point where you or the buyer counter again (valid only if the buyer is on board as well).<\/li>\n
- Let the buyer walk away, and wait for another offer.<\/li>\n<\/ol>\n
If you choose the first option, note that it\u2019s a two-way street. Your counter offer effectively voided the buyer\u2019s original offer<\/a>. The buyer, who has been released from the original contract, has to agree to continue the conversation. They are legally free to make offers on other homes, and have no obligation to go through with this purchase.<\/p>\n
But, depending on how much they want the home, they might still be willing to work with you. And then you have to decide if it\u2019s worth playing ball.<\/p>\n
With the help of your agent, here\u2019s how to plot your next move.<\/p>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/buyer-rejected-counter-offer-2-666x381.png\")
<\/a>Source: (Alexander Zvir \/ Pexels)<\/figcaption><\/figure>\n Evaluate your negotiating position<\/h2>\n
\u201cIt\u2019s one thing if the house just hit the market\u2014 we\u2019re going to wait and see who\u2019ll come in and pay the price,\u201d Topper says.<\/p>\n
But if your house has been on the market for 5 or 6 months and your agent is hearing that it\u2019s overpriced \u2014 or if you need to unload it in a hurry because of a job change or other life event \u2014 prepare to give in a bit.<\/p>\n
\u201cIt depends on how much the buyer wants that house, and how quickly that seller wants to sell the house. Every single situation is different, honestly,\u201d she says. \u201cIf the seller has their eye on another property, [it may be wise to] bite the bullet on a few thousand dollars.\u201d<\/p>\n
Do a gut check on price<\/h2>\n
You can likely avoid a lot of back-and-forth with buyers, particularly when it comes to price, by valuing your home right from the start.<\/p>\n
Topper, with an average of 52 days on market sells properties 37% faster<\/a> than the average Longwood agent, says she\u2019s keen to set a good listing price at the outset based on necessary repairs, such as replacing a roof or resurfacing a pool.<\/p>\n
Sellers sometimes look at a well-loved home through rose-colored glasses and need a kind but honest assessment about its flaws.<\/p>\n
\u201cI\u2019m very good at working with sellers to show them the light if I feel we really should come down because of things the buyer\u2019s agent has pointed out,\u201d either on a walk-through or because of the home inspection, she says.<\/p>\n
That says, a buyer who submits a \u201cridiculous\u201d bid, such as one that\u2019s $100,000 less than what the house is worth, is bound to get a counter offer, if a seller considers the offer at all, Topper says.<\/p>\n
An offer is considered a \u201clow ball<\/a>\u201d if it comes in at 15% or more below market value<\/a>. Such an offer can be appropriate if a house needs obvious repairs<\/a> or you\u2019re in a recession-like market<\/a> where home values are dropping.<\/p>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/buyer-rejected-counter-offer-3-666x381.png\")
<\/a>Source: (Andrea Piacquadio \/ Pexels)<\/figcaption><\/figure>\n Unreasonable buyer? Let them walk<\/h2>\n
Negotiations<\/a>, competing offers, and counter offers<\/a> are a common dynamic in real estate. While buyers and sellers each want the most favorable terms for the property, sellers naturally want the highest price they can get<\/a> while buyers typically want the lowest.<\/p>\n
If your home is priced fairly for its condition and the state of the market, you shouldn\u2019t expect a lot of haggling. In 2019 buyers typically purchased homes for 98% of the asking price<\/a>, according to data from the National Association of Realtors. So, if your counter offer was reasonable, and the buyer doesn\u2019t seem willing to budge, it may be best to let the buyer walk away.<\/p>\n
Address any sticking points<\/h2>\n
Let\u2019s say you\u2019re not quite willing to give up on negotiations with this particular buyer yet. The best way to determine how much wiggle room you have is to ask why the buyer rejected your counter offer.<\/i> What\u2019s behind their initial bid?<\/p>\n
Were the appliances old?<\/h3>\n
If buyers were concerned about your older refrigerator, HVAC, stove, washer\/dryer, or other appliances, talk with your agent about offering a one-year home warranty<\/a>, which averages about $350 to $600. This allows buyers to pay for any repairs or replacement at considerable savings.<\/p>\n
Does your home need a major repair?<\/h3>\n
If the sticking point was another major repair, such as replacing worn carpeting or the roof, your agent may know a handyman service or any other professionals who can do the work before closing.<\/p>\n
There may be ways to get creative. Topper says she\u2019s handled transactions where the buyer comes in a little higher to cover the cost of replacing the roof, and a roofer she knows completes the job in time for the escrow company to pay them at the closing table.<\/p>\n
What about closing costs?<\/h3>\n
Sometimes buyers ask sellers to pay closing costs. Sellers already pay about 6% \u2013 10% of the sale price in closing costs<\/a>, which include the real estate agent commission, taxes, and recording fees. Buyers typically pay about 2% \u2013 5% of the sale price in assorted fees to settle up with the lender. One negotiating option would be to cover some of these costs, say, the cost of the title search<\/a>.<\/p>\n
But make sure your generosity is necessary \u2014 your negotiating power will largely depend on local market conditions. \u201cWhen it\u2019s a seller\u2019s market<\/a>, sellers never pay buyers\u2019 closing costs. Ever,\u201d she says. \u201cWhen it\u2019s a buyer\u2019s market and the seller wants to sell, instead of coming down in price, they\u2019ll just pay the closing costs.\u201d<\/p>\n
![\"An](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/05\/buyer-rejected-counter-offer-4-666x381.png\")
<\/a>Source: (Andrea Piacquadio \/ Pexels)<\/figcaption><\/figure>\n No luck on price? Negotiate for more favorable terms<\/h2>\n
If a buyer rejects your counter offer, it\u2019s possible they\u2019re close to what they can spend. While it\u2019s easy to become frustrated, Freddie Mac suggests using the offer process to negotiate for what you want<\/a> that isn\u2019t money-related.<\/p>\n