How to Properly Counter Offer

A buyer when expressing interest in a property will often feel out the situation with the broker or seller. They then will place an offer, which could come relatively quickly. A buyer will sometimes buy time with due diligence but if they’re interested a lot of offers usually come soon after they get the materials and review them.

That initial offer might be a genuine one, it might be a great offer, or it might be a lowball.

It’s good to understand where on the spectrum they are in terms of what their top level max is without offending.

Many times out of the gate a serious buyer will show some of their cards. Most buyers who are legitimate (placing an offer above 65% of the asking price in all cash) are not looking to play games. They are telling you what the business is worth in their mind. Can you get them to budge. Of course. Will you get them to double their price, probably not.

If their offer is far off from what you’d accept be polite, nice, and blunt that you can’t go low enough, it’s not worth it to you. However if they’re kind of low but you want to stretch them to see if they can enter what you’d initially thought, then you should

So the best counter will get them to increase their cash commitment by a decent percentage but most importantly their total offer to match your asking price. You do this in a strategic way.

There is an art to negotiation. It’s a fine line. You can offend them.

When a buyer is interested in a property, many times a seller will just look at what the buyer offers at what the buyer is looking to buy it for. Many times a seller will become emotional about it and try to explain until their blue in the face why their business is worth more. As brokers, we know why the business is worth more. That is why we generally took on the listing and in fact we see value in many assets that sellers don’t see. The bottom line is you have two numbers and it’s about assessing how far the numbers are apart and what if anything can make those numbers come together. That’s what negotiation is.

There’s a great line in the movie All the Money in the World, when Mark Walhberg’s character has the authority to give $0 in negotiations by his boss, the richest man in the world in Getty. Mark says “Right now, the numbers are $17 million and zero. And those numbers have to move.” This is the art of negotiation. Understanding where the gap is and how you move numbers.

Understanding what you can and can’t do and working within the confines of ethical boundaries to move numbers to get a buyer and seller to come to terms on an agreement.

Phone – (800) 773-1523

Email – acquisitions@Jarbly.com

Leader in Business Consulting with Expertise in Representing Sellers & Buyers on Deals

Jarbly is a leader in business consulting with expertise in helping with revamped strategies, enhancing valuation, positioning for an exit, and business and real estate sales.

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Phone: (800) 773-1523
Email: support@jarbly.com

About Jarbly

JARBLY’s focus is on business consulting with an emphasis on creating disruptive ventures and high quality boutique services to enhance a business’ valuation and lead to a high quality exit. As JARBLY has been heavily involved in the digital space including its own ventures for a decade with servicing hundreds of clients around the world, it is very well versed with understanding technical aspects of a deal including value proposition, product offerings, marketing, metrics, ROI, moats, and value-add initiatives. JARBLY has the expertise and knowledge on various businesses, industries, and deals and is very creative with structure to help increase valuation, or help guide you to a strategic exit. JARBLY has helped brands grow and also cultivates business related and real estate opportunities that are ripe for acquisitions, helping buyers and sellers get what they are seeking from a deal.

Whether it comes to growing your business, including acquiring businesses you want to understand the deal. We understand deals and where the maximal value in a transaction is. Our bread and butter is to provide a win for our clients including positioning your company for an eventual high quality exit. We have the unique and uncanny ability to bring high quality materials to the table and renewed strategies that consistently work. We help with financial enhancements, implementing systems, and prepping your business with materials including Prospectuses, Confidential Information Memorandums, and high quality Value Proposition Decks.

JARBLY looks forward to working with you to enhance your business profits nad valuation and help you on your next acquisition, exit, or real estate opportunity including both commercial and high end residential properties with high end service from a qualified team of passionate individuals that help you secure the deal. JARBLY LLC is part of Trend Realty in Sarasota, FL operating the Boca division as the JARBLY team.

Jaret will hop on a quick call with you to understand your and your business.

Text or call (800) 773-1523 and Jaret can arrange to have a brief consultation with you at your business location before embarking on a series of consulting calls or a full immersion.

How to Properly Counter Offer