A counteroffer is a response to an offer in which terms and price are negotiated. Counteroffers must always be made in writing and have a short time (48 hours or less) for the buyer to respond. You can offer a credit for paint and carpets, but insist on keeping the original retail price, for example. Or, you may offer to leave some appliances to improve the offer.
In addition, if the buyer has negotiated the credits that will be paid at closing for repairs or closing costs, the seller will also pay them. Your real estate agent or closing agent should provide you with a full list of the costs you'll be responsible for at the closing table. While the buyer usually pays most of the closing costs, between 2 and 4 percent of the sale price, keep in mind that you may also have to pay some fees. Any smart shopper will negotiate, and if you want to complete the sale, you may have to play ball.
Most people want to list their homes for sale at a price that attracts buyers and, at the same time, leaves some room for negotiations, as opposed to the undervaluation strategy described above. This can work, as it allows the buyer to feel that they are getting good value for money and, at the same time, it allows them to get the amount of money they need from the sale. Since you don't have an agent, you'll be the one to show the house and negotiate the sale with the buyer's agent, which can be time consuming, stressful and emotional for some people. So how do you set a reasonable selling price to sell your house as soon as possible? Well, you can check out these top five free home value estimators to determine how much your home is worth.
In an ideal world, a real estate investor will only sell in a seller's market to get the most value out of the investment property. A buyer's market is when the real estate market is experiencing a low, causing more people to invest in real estate. For example, this Chicago trend report not only tells you that the city is in the middle of a seller's market, but it also provides you with data on the average sales price, the average price per number of rooms, the number of homes on the market, and how these numbers have changed over the past year. If you need to close quickly to move or for tax reasons, consider offering a credit to the buyer and even an extra commission to the buyer's agent.
Sellers can get a general idea of how much their property can be sold for by typing their address into a home value calculator, but that estimate is just the beginning of the pricing process. Most people don't want to buy a shabby investment property, especially in a buyer's market. Whenever there is a limited supply of homes on the market and a large number of interested buyers, time is of the essence. Instead of offering something to the homebuyer, you could offer an incentive to a broker to make your property stand out from all other similar listings.
If you do it alone, you'll have to personally manage the preparation of your home, its marketing, the review of buyers' offers, and the management of all negotiations and closing details. If you can't find a buyer in time, you may end up trying to pay two mortgages, having to rent your home until you can find a buyer, or, in difficult situations, in foreclosure.