In a perfect world, the first offer you made on a home for sale in would be accepted and a deal would be struck. But because seller's price houses with the expectation of negotiating and buyers make offers with the expectation of negotiating, the chances of that happening are slim. Both parties need to make sure they are getting the best possible deal, and will continue to go back and forth on an offer until they feel that they have gotten as much as they can. So don't get discouraged when the seller counters. Here's how to handle it.
The most important thing to do when you receive a counter offer is not to respond to the seller with your first knee-jerk reaction, especially if it's negative. Give yourself time to think about it and consider what it would mean for you and your finances. Can you afford it? Should you cave this early in negotiations? Do you feel that the seller's price is fair? If the home worth it, you may be willing to put up with ornery or recalcitrant sellers. Get together with your partner and realtor and decide what your next offer will be. At Leaside Homes, Mr. Rocca suggests that the client not responds right away to a counter offer because it can often be fueled by emotions. He asks clients to hold off and think through the pros and cons before making the final decision.
If the offer is a good one, ask yourself: can I get it a little lower? If the answer is yes, don't accept the offer for the sake of having the negotiations over with. Make a counter offer and try to save little more on your condominium that can be put toward interior renovations. If the answer is no, then you should accept the offer rather than trying to wring a few bucks out of the seller and possibly causing her to retract her counteroffer altogether.
Sometimes you will run into a situation where the seller will counter your offer at the original asking price. You may be tempted to walk away right there and then. Perhaps the seller countered in the hopes that you would capitulate and will be more accommodating if you come back with an offer a little higher than your last one. It doesn't hurt to try. Many agents working for Flatprice.ca will advise their clients to only offer what they are willing to pay and will be content knowing they paid for the property in the future.
If you want to continue negotiations your real estate agent, will advise you to offer higher, not lower, than your first offer, no matter how much you want to "punish" a seller for a bad counter offer.