By Katie Dobson, REALTOR® | Royal LePage Real Estate Associates

You've received an offer on your Brampton home, but the buyer is offering less than your asking price.

Your first reaction may be disappointment.After all, you've put considerable effort into preparing the property, and you want to achieve the best possible result.But before rejecting the offer, consider this.An offer below asking price isn't automatically a bad offer. Its merits depend on the home's market value, current competition and the complete terms being proposed.

Asking Price Isn't the Same as Market Value

An asking price is a marketing decision.It may be above, below or close to the price buyers are prepared to pay.If your home is listed at $900,000 and receives an offer of $875,000, the important question isn't simply whether the offer is $25,000 below asking.It's whether the offer is reasonable compared with recent comparable sales and current market conditions.

Consider How Long the Home Has Been Listed

Time on market can provide context, although it doesn't determine value by itself.If the property has just been listed and buyer interest is strong, you may have different options than if it has been available for several months with limited activity.Review showing feedback, comparable sales and competing listings.

Look Beyond the Purchase Price

An offer includes other important terms.A buyer may propose a substantial deposit, a convenient closing date or relatively few conditions.Another buyer might offer more money but require terms that introduce uncertainty.Consider how each provision affects your circumstances.

Should You Counteroffer?

A counteroffer may allow you to propose a different price or terms.However, the buyer may accept, reject or respond with another proposal, depending on the situation.Negotiation involves uncertainty.Before countering, consider what result would be acceptable and what risks you're prepared to take.

What If You Need a Certain Price to Move?

Your financial requirements are important.If the proposed selling price would make your next purchase unaffordable, that needs to be considered.But the amount you need doesn't automatically determine what the market will pay.I recommend comparing your expected net proceeds with your next-home costs before deciding.

When Might Rejecting an Offer Make Sense?

You may decide not to accept when the price or other terms don't meet your objectives.However, that decision should account for the possibility that another offer may not arrive quickly or may have less favourable terms.A REALTOR® can help you evaluate the evidence, but the decision remains yours.

Frequently Asked Questions

Is an offer 5% below asking insulting?

No. Buyers may negotiate based on their assessment of the property and market.

Should I always counter a low offer?

Not necessarily. The appropriate response depends on the circumstances.

Does a cash offer guarantee closing?

No. The buyer's ability to perform and the agreement's terms still matter.

Can I negotiate the closing date instead of the price?

Yes, closing dates and other terms may form part of negotiations.

Can I reject an offer and keep my home listed?

Generally, yes, provided you haven't become contractually bound and comply with applicable obligations.

Need Help Evaluating Your Selling Options?

My MCNE® negotiation training informs my approach to helping sellers understand offers and negotiate thoughtfully.Request a Complimentary Brampton Home Selling Consultation.Katie Dobson, REALTOR®
Royal LePage Real Estate Associates
Brampton | Rosedale Village | Downsizing | Estate Property Sales