Everything you need to know about real estate counterproposal
We have seen what the real estate purchase proposal is and how it works. In case the proposal is accepted, the purchase and sale will proceed to the next stage. But what happens if the seller does not accept the offer to purchase the property but proposes a different price? In this case it is referred to as real estate counterproposal.
During this particularly delicate phase, it is crucial to have a clear understanding of the moves to be made in order to avoid costly mistakes, such as paying for an apartment well above its true market value. In addition, it is essential to avoid wasting time in negotiations that turn out to be fruitless or unprofitable.
Let’s look together at what a real estate counterproposal is, how to handle it, and some tips.
What is the real estate counterproposal
A real estate counterproposal is a form of negotiation that can occur during a real estate purchase or sale. The counteroffer comes in response to a previous real estate proposal to purchase a house. Typically, the seller responds to a potential buyer’s offer with a higher price and/or different terms. The buyer is free to accept, reject or make an additional counteroffer.
For example, a buyer might make an offer below the listing price, proposing to buy at 200,000 a property listed for sale at 220,000. The seller, instead of accepting or rejecting the offer completely, can make a counteroffer at a slightly higher price, such as 210,000.
It is a bit like bargaining, or a conditional yes. By making a counteroffer, the seller is essentially saying, “Okay, I may be willing to sell you my house, but I would like to receive more money than you are proposing.”
The buyer can accept the new terms, reject the counteroffer, or put another proposal on the table, such as suggesting that the seller meet in the middle, offering 205,000.
Whether as a buyer or seller, accepting or not accepting a counteroffer depends on your needs and desires. Before proceeding or refusing, do your calculations and figure out whether it is more strategic to continue negotiating or to accept.
Assessing your priorities and budget is the best way to determine whether the proposed new conditions are acceptable.
Pros and cons of the seller’s real estate counterproposal
The biggest advantage of making a counteroffer, of course, is potentially being able to sell your home for more money than the buyer would like to offer.
That said, there are downsides as well: one is that you may end up wasting time with negotiations that go nowhere. Some buyers simply will not respond to your counteroffer, dropping the bargain.
In addition, if you spend too much time in negotiations and lengthy counter offers with a potential buyer, you may also risk neglecting the interest of other buyers, thus missing several sales opportunities. It is usually a good practice to set a deadline, in terms of time, to negotiations, so that the process cannot drag on too long.
| Benefits | Drawbacks |
|---|---|
| Ability to sell the property at a higher price than the buyer’s initial offer. | The risk of wasting time in negotiations that do not lead to agreement. |
| Greater control over the negotiation, with the ability to modulate the price and terms of sale. | Some buyers may not respond to the counterproposal, breaking off negotiations. |
| Opportunity to find a more advantageous meeting point than the initial proposal. | Prolonged negotiations with only one buyer could lose the interest of other potential buyers. |
| Ability to set deadlines and conditions to make the negotiation more structured. | If the counterproposal takes too long, the seller may miss better opportunities in the market. |
Pros and cons of real estate counterproposal for buyers
Homebuyers are generally the ones affected by counteroffers: in fact, they make proposals and, based on these, the seller may accept, reject, or propose something else.
The main advantage of receiving a counteroffer, for buyers, is the possibility of securing the house at a lower price and on better terms, which is always a good thing.
However, if you are really interested in buying a property, it is not a good idea to “block” the seller with an endless back and forth of proposals and counterproposals.
Sellers can quickly tire of this type of negotiation, and the more time you choose to let from first proposal to actual confirmation, the more time the current property owner will have to look around and accept other offers. In addition, an uncooperative and uncompromising attitude may give the salesperson the wrong impression and make him or her fear that you are a difficult customer to deal with and very prone to raise issues.
If you have reached your spending limit, indicate that your counteroffer is your “last and best” offer, with a time limit for acceptance. This kind of transparency will make your position very clear to the seller.
| Benefits | Drawbacks |
|---|---|
| Possibility to purchase the property at a lower price than the seller’s initial request. | Risk of unduly prolonging the negotiation, leaving room for other buyers. |
| Opportunity to negotiate more favorable terms, such as payment terms or inclusion of furnishings. | Too many counterproposals may tire the seller, leading him or her to reject the offer. |
| Greater control over the negotiation, with the ability to adjust the offer according to the available budget. | If the seller perceives the buyer as uncooperative, he or she may prefer another buyer. |
| Clearly stating a “last and best offer” with a deadline can speed up the acceptance process. | An overly rigid attitude may give the impression that the buyer is difficult to deal with, reducing the chances of success. |
How to handle counteroffers when selling your home
If a seller receives an offer that they feel is too low, or otherwise not up to their expectations, there are three ways to respond:
- Reject. If you are not satisfied with the offer and are not interested in making a deal, you can reject an outright real estate counteroffer. At this point the buyer may (or may not) return by putting a better offer on the table.
- Accept with a contingency. If you wish to accept the offer but have specific concerns, you can accept with certain conditions, or contingencies, in place. Make sure the language in a contingency situation is crystal clear so that there can be no misunderstanding.
- Make a counteroffer. If you wish to accept that specific buyer’s offer, but would prefer to get better terms, you can make a counteroffer. This may include a higher price or other terms, such as a specific date for closing the purchase or more elastic timeframes for making the move.
Tips for buyers making a real estate counterproposal
When making a real estate counterproposal as a buyer, it is good to know your limits. Although you may want to be flexible, you should still maintain a firm stance on the maximum amount you are willing to pay to purchase the property. This will help you stay out of bidding wars with other buyers, and avoid unclear or unpleasant situations with the seller.
Before responding to a seller’s counteroffer, therefore, double-check the compositions of the house to ensure that the seller’s assessment is reasonable.
If, however, you believe that the seller’s asking price in the counteroffer significantly exceeds the fair market value that should be attributed to the house, you have more negotiating power to offer a lower price. But do it without wasting too much time: counter offers often have a strict deadline.
What is the role of a real estate agent in counterproposal?
The role of the real estate agent, whether they represent the seller or the buyer, is to seek the best interests of their clients and help them move through the buying and selling process in the best way possible. Agents often advise on the decision to accept, reevaluate, or reject certain offers and counteroffers.
If a seller has received multiple bids, for example, the seller’s agent may recommend extending the deadline by several days or more to see if this high interest leads to a “battle of the bids” or if the customer prefers to accept one of the many proposals directly.
An agent can also play a key role in calming and soothing any negative feelings that may arise from the bargaining process.
A buyer’s agent, on the other hand, will be able to provide useful advice regarding the real estate counteroffer made by the seller and provide valuable insight into whether the counteroffer is valid or whether it is still negotiable.
Practical example of a real estate counterproposal
To better understand how real estate counterproposal works, let’s look at a practical example.
Let us imagine that Mr. Rossi has put his apartment up for sale at a price of €250,000. A potential buyer, Mr. Bianchi, is interested in the property, but believes that the asking price is higher than the market value. He therefore decides to submit a purchase proposal of 220,000€.
Mr. Rossi, after evaluating the offer and considering the market trend, believes that the proposed figure is too low. However, in order not to lose a possible buyer, he decides to send a counterproposal at 235,000€, reducing the initial price but not completely accepting the buyer’s request.
At this point, Mr. Bianchi may:
✔ Accept the counterproposal, finalizing the purchase on the revised terms.
❌ Reject it, giving up the purchase.
🔄 Submit a new proposal, continuing the negotiation until a mutually satisfactory meeting point is found.
This example shows how the real estate counterproposal is a useful tool for negotiating the price and terms of sale, allowing seller and buyer to move closer to a mutually beneficial deal.
How to write a real estate counterproposal?
When a real estate counterproposal must be formulated, it is crucial to proceed carefully and competently to ensure a balanced agreement between the parties. There are two main options for handling this crucial phase of the negotiation:
- Rely on a professional: An experienced real estate agent can provide strategic support in the negotiation, helping to structure the counterproposal effectively and in accordance with market standards. With his or her experience, he or she will be able to best balance the interests of seller and buyer, maximizing the chances of a successful transaction.
- Draft the counterproposal yourself: If you prefer to handle the writing independently, you can refer to structured templates. To facilitate this process, we provide a real estate counterproposal facsimile, which you can refer to directly below or download to customize it to suit your needs.
Example of a real estate counter proposal form.
CONDITIONAL ACCEPTANCE OF PROPOSED REAL ESTATE PURCHASE
Place, Date: [Inserire il luogo e la data]
Concerning the Proposed Real Estate Purchase – attached to this writing – formulated on this date [Inserire la data della proposta originale] Between:
- Mr. /Mrs. [Nome Acquirente], born on [Luogo di nascita] on [Data di nascita], residing in [Indirizzo], tax code [Codice fiscale] (hereinafter referred to as “Proponent”) and
- Mr. /Mrs. [Nome Venditore], born on [Luogo di nascita] on [Data di nascita], tax code [Codice fiscale], (hereinafter referred to as “Seller”)
For the housing unit located on [Indirizzo completo dell’immobile], Floor [Numero piano], and identified in the NCEU as follows:
- Apartment: Sheet [Numero], Particle [Numero], Subaltern [Numero], Category [Categoria catastale], Class [Classe], Rooms [Numero vani], Cadastral Area [Mq], Cadastral Income € [Importo].
The Vendor hereby accepts the proposed purchase on the following revised terms and conditions:
- Purchase price: the amount offered is changed to [Importo] €, from the initial proposal of [Importo originale] €.
- Deed date: the final deed is set by . [Data].
- Down payment: the proposer agrees to pay a down payment in the amount of [Importo o percentuale] within [Numero di giorni] from the signing of the preliminary.
- Any other conditions: [Specificare eventuali condizioni aggiuntive concordate].
All other conditions in the enclosed Purchase Proposal remain unaffected and expressly accepted.
This conditional acceptance is irrevocable until [Data limite], and will become ineffective if, by that time, the Proposer has not countersigned for acceptance. In case of non-acceptance, both the proposal and this counterproposal will lose all effect, releasing both parties from any contractual obligation.
[Firma del Venditore]
[Firma del Proponente (per accettazione)]
Download the facsimile of the real estate counterproposal
The counterproposal template you just read can be a great starting point for structuring your negotiation in a clear and professional manner. However, each real estate situation is unique and may require specific customizations.
To make it easier for you to draft, we provide a facsimile of a real estate counterproposal in a downloadable format, which you can use and modify according to your needs.
IMPORTANT: The downloadable real estate counterproposal template is provided for informational and illustrative purposes. It is a generic document that can be modified and adapted to the specific needs of each user. You are advised to use it only as a baseline and customize it according to your situation and local legal requirements.
It should be emphasized that the use and completion of the template is entirely at the discretion of the user, who is responsible for verifying its accuracy and compliance with applicable laws in his or her jurisdiction. The real estate agency assumes no responsibility regarding the use, accuracy, or consequences of using this template.
Before proceeding with the completion and submission of the real estate counterproposal, it is strongly recommended that you consult a real estate professional or attorney to ensure that the document is appropriate for the specific circumstances and applicable local regulations.
Frequently asked questions about real estate counterproposal
Does the counterproposal cancel the purchase proposal?
Yes, as a general rule, a real estate counterproposal nullifies the original purchase proposal, since it introduces new conditions that must be accepted by the buying party to make the agreement valid.
When a seller submits a counterproposal, he is in effect rejecting the buyer’s initial offer and proposing new terms of sale. At this point, the buyer can:
✔ Accept the counteroffer, thus ending the negotiation.
❌ Reject it, causing the agreement to lapse.
🔄 Make a further counterproposal, initiating a new round of negotiations.
To avoid misunderstandings, it is always advisable for the counterproposal document to clearly state that it supersedes the previous proposal, rendering it null and void unless it is accepted in full by the buyer.
How to write a real estate counterproposal clearly and effectively?
To write an effective real estate counterproposal, follow these steps:
1️⃣ Give references: date, place, seller and buyer details, and references to the original proposal.
2️⃣ Specify the changes: new price, payment method, deed date, and other conditions.
3️⃣ Include a validity clause: e.g., “This counterproposal, if accepted, will become part of the purchase proposal.”
4️⃣ Define a deadline for acceptance to avoid endless negotiations.
5️⃣ Signature of the parties: the seller signs the counterproposal and the buyer must countersign it to make it valid.
📥 Download the real estate counterproposal form for a ready-to-use template.
If I accept the seller’s counterproposal in all its terms, is acceptance automatic or does it have to be signed?
Acceptance of the counterproposal is not automatic: it is always advisable for it to be formalized with a signature to avoid any ambiguity or dispute.
A proper way to proceed is to include clear wording in the document, such as:
“This counterproposal, if accepted by the buyer party, will become an integral and substantial part of the purchase proposal.”
In this way, once accepted by the buyer, the negotiation can be considered concluded and binding on both parties.
If the seller rejects my proposal and then changes his mind by the deadline, am I obligated to accept? Do I risk losing the deposit?
If the seller initially rejected your proposal and made a written and signed counterproposal, this effectively nullified the validity of your first offer, creating a new proposal that had to be formally accepted by both parties.
If the seller subsequently decided to accept your initial proposal without your having accepted his counteroffer, you may need to check whether this acceptance is valid or whether the first offer had already lapsed with the counteroffer.
The key point is what was actually signed and in what form the communications took place (paper, email, minutes). If everything was documented in writing, the interpretation may vary depending on the terms stated in the contract.
To avoid losing the deposit or incurring disputes, it is advisable to consult an attorney experienced in real estate law who can analyze the documents and clarify the situation based on the agreements signed.
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