Should I counteroffer or reject outright?
Stop Guessing: Counteroffer or Kill the Offer — Which Is the Smart Move?
Quick answer
Counteroffer when the gap is fixable and the buyer looks serious. Reject outright when the offer is abusive, clearly lowball, or would cost you time and money. This isn’t emotional. It’s math, leverage, and timelines.
Why this matters now
Every offer is a negotiation test. Treat it like a business decision. You want the highest net result with the least risk and delay. Make choices that protect your profit, timeline, and sanity.
How to decide — a simple framework
- Check market signals
- Hot market (fast sales, multiple bids): lean toward rejecting low offers. You have leverage.
- Cold market (long days on market): be open to counteroffers that improve terms.
- Measure the gap
- Small gap (usually within 2–4% of list price): counter. You’ll likely close with minor concessions.
- Large gap (7–10%+): reject unless the buyer brings other major value (cash, quick close, no conditions).
- Evaluate buyer strength
- Cash or pre-approved? Strong.
- Conditional on financing, long closing, or many contingencies? Weak. Prefer to reject unless price compensates.
- Weigh terms beyond price
- Inspection, deposit, closing date, and inclusions matter. A lower price with no inspection and a higher deposit can beat a higher-price offer with many conditions.
- Know your walk-away number Decide what you want net after fees and repairs. If the offer can’t get you there even after negotiation, reject.
How to counter—practical moves that work
- Anchor high: open the counter at or slightly above your target to protect negotiation room.
- Fix the terms: tighten timelines, increase deposit, limit conditions. Price isn’t the only lever.
- Use a firm deadline: force a decision and reduce buyer leverage.
When to reject outright
- The offer insults your value and shows no serious intent.
- Buyer has no pre-approval and wants long, conditional timelines.
- Market data shows better offers likely within a short window.
Example in practice
You list at $800K. Offer arrives at $720K with long closing and low deposit. If local comps support list price and other properties are moving, reject. If the house sat for 90+ days and buyers are rare, counter at $780K with a 10% deposit and 30-day close.
Final rule: be decisive
Indecision costs money. Counter when price and terms can be narrowed. Reject when the offer will derail your goals.
For clear, local advice and a fast, tactical evaluation of any offer, contact Tony Sousa — your local negotiation expert.
Email: tony@sousasells.ca Call: 416-477-2620 Website: https://www.sousasells.ca
