3 Reasons Buyers May Want a Counteroffer
Keep It Legal
The listing agent can't tell the buyers anything that would weaken the sellers’ bargaining position (such as a price the seller would be willing to settle for). Similarly, a buyer's agent can't reveal the buyer's top price to the seller unless authorized to do so.
- To spark negotiations. A buyer might make an opening offer just to get the negotiations going.
- To reach compromise. If the seller has an unrealistically high asking price, the buyer might make a low offer to try and strike a compromise.
- To find affordability. A buyer who can't afford what the seller is asking might offer something close to his or her maximum, hoping the seller will make a viable counteroffer.
Source: Tips and Traps When Negotiating Real Estate, by Robert Irwin (McGraw-Hill, 1995).
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