Don't rush to accept counteroffers

[Jorge Vazquez]

Here are some tips for both buyers and sellers during a negotiation:

1. Don't rush to accept counteroffers. Allow the other party to feel some pressure and build tension. This can actually be beneficial during negotiations.

2. Stay calm and let professional real estate agents handle the bargaining. Buyers and sellers should avoid direct communication to prevent potential conflicts.

3. Consider matching opposing counteroffers. For instance, if the seller lowers their price by $2,000, the buyer can increase their offer by the same amount. This can be repeated until both parties agree on a price.

4. Another common strategy is to split the difference between the last offer and the counteroffer. If both parties agree to this, simply add half of the difference to the buyer's offer or subtract it from the seller's bid.

[Bill B.]

Personally I love when someone counters over $1,000 or $2,000 and I’ve received a better offer while they were “thinking about it”. They’re on their 2nd or 3rd counter and they get a no thank you, we’ve gone with someone else response. Suddenly they want to accept the original deal or outbid the new offer but it’s too late. 

I learned that lesson when I didn’t buy a few houses over a few thousand dollars in the late 2000’s, because I had gotten better deals the month before. Easily a million dollar mistake, probably more. 

Imagine any property you own today that you’ve owned more than 5-10 years. Would you be happy to buy more identical properties for $5-$10k more than you paid then? I sure hope so. I’d rather have a decent deal than just barely miss out on a great deal.  

One last story. I was selling a rare 2 stroke motorcycle for $10,000. The advertiser “somehow” listed it for $5,000. I got tons of calls offering me $4,000 or $4,500 and I had to explain it was $10,000. Nobody called excitedly to offer me the full $5,000. When it was relisted for $10,000, that’s what it sold for the next weekend. Not one “buyer” recognized a great deal, a half price deal, they only saw a negotiation starting point. If I had just been firm on my $5,000 and it wasn’t a mistake they would have cost themselves the deal.