Navigating the Art of Negotiating the Counter Offer
When you’re diving into the Edmonton real estate market, things can move fast. One moment you’re touring a beautiful bungalow in South East Edmonton or a sleek condo downtown, and the next, you’re staring at a contract, wondering if your next move is a stroke of genius or a deal-breaker.
“Derek, is a 20% counter offer too much?”
It’s a loaded question. In the world of real estate, there isn’t a one-size-fits-all answer, but there is strategy. As a top REALTOR® in Edmonton, I’ve seen every type of negotiation you could think of. Whether you are buying your first home or selling a property you’ve owned for decades, understanding the "dance" of the counter offer is what separates a successful closing from a missed opportunity.
Understanding the Edmonton Market Context
Before we talk percentages, we have to talk about the "why." In Edmonton, our market is unique. We aren’t Toronto or Vancouver—we have our own rhythm. When a buyer submits an offer and a seller comes back with a counter offer that is 20% different from the initial price, we have to look at the data.
If a home is listed at $500,000 and a buyer offers $400,000 (a 20% drop), or if a buyer offers $450,000 and the seller counters at $540,000, we are looking at a massive gap. In most stable markets, a 20% swing is considered aggressive. However, "too much" is relative to the home’s actual market value.
This is where having an expert REALTOR® on your side becomes your greatest asset. My job is to ensure that your offer or counter offer isn’t just a random number pulled out of thin air, but a calculated move based on comparable sales, current inventory, and the specific condition of the home.
The Strategy Behind the Counter Offer
Negotiation is an art form. When you’re deciding how to put in offers and counter offers, you have to consider the psychology of the person on the other side of the table.
1. The "Anchor" Effect
In real estate, the listing price is often the "anchor." If a seller lists their home accurately, a 20% counter offer might feel like an insult, potentially causing the seller to walk away entirely. On the flip side, if a home is wildly overpriced, a 20% correction might simply be bringing the deal back to reality. If you are countering because you want the house, are willing to lose it and feel it is overpriced, 20% counter might make sense, but then it might be better to find a home that is closer to its market value and have a higher chance in getting it.
2. Market Velocity
How long has the home been on the market? If it’s day two, a 20% counter offer will likely be rejected immediately. If the home has been sitting for six months, the seller might be more inclined to listen to a significant price adjustment. Imagine you are a seller. You just listed your home yesterday. The chances are fairly high that you are expecting the price it is listed at. The number of buyers that want to give low-ball offers right when a property is coming onto the market is surprisingly high. Most are not working with a real estate agent and are likely wasting their time.
3. Motivation Levels
Why is the seller moving? Are they in a rush? As your REALTOR®, I dig deep to find out as much as possible about the situation. Knowledge is power in a negotiation. If we know the seller needs to move for a job transfer, our counter offer strategy changes.
4. Other Offers
Are their multiple offers? If so, if you are considering putting in an offer or counter offer that is 20% off, then what are the chances that one of the other offers is willing to pay what it is listed at or more. If there are multiple offers it generally means it is at minimum listed at market value so lower offers usually wont cut it.
5. Your Motivation
On multiple occasions, I have had buyers say to me “Derek, we want to put in a low offer, but we need to get this house”, or similar statements. There is risk in any negotiation. If you have no other good options, ask your real estate agent which offer will likely get accepted.
Should you even put an offer in on a home that has been sitting there for a long time?
There can be deals in homes that have been missed and undervalued for a number of reasons, but often there is a reason a house is not selling. 90% of the time it is the price. With very few exceptions, every home sells at the right price.
Instead of searching for overpriced homes that have been sitting on the market for a long time so that you can offer lower offers for, you may want to look at houses that are priced well and offering close to what the seller’s are asking. Sometimes the feeling of getting “a deal” on the purchase price can feel good, but if it just means that you are the creator of a market price adjustment, then purchasing a house that is already priced well, is a much better strategy.
Deciding on the Right Number
When my clients ask me how to structure an offer, I always tell them to look at the "Three Cs": Comparables, Condition, and Competition.
Comparables
What have similar homes in the same neighborhood sold for in the last 90 days? If the 20% gap aligns with what the neighbors sold for, then it’s not "too much"—it’s accurate. I provide my clients with exhaustive data so they never have to guess.
Condition
Does the house need a new roof? Is the furnace 25 years old? If a home requires $50,000 in immediate repairs, a 20% counter offer is a reflection of the capital expenditure required. I help you navigate these inspections so your offer reflects the true value of the property. Also, laying out the why, or looking at different angles or options that might be favourable for one side depending on what their value. Sometimes it is more than just money.
Competition
Are there five other offers on the table? If so, a 20% under-ask counter offer will get your file tossed in the trash. If you’re the only buyer, you have the leverage to be bolder.
Positioning Yourself for Success
To be successful in Edmonton real estate, you need more than just a person to open doors. You need a strategist. You need someone who understands that every dollar counts.
When you work with Derek Keet, you aren’t just getting a REALTOR®; you’re getting a partner who is committed to your financial success. Derek has a long history of buying and selling with holdings likely more than any other discount real estate agent in Edmonton. He chose the One Percent Realty model because he believes Edmontonians deserve better. One Percent Realty was what he personally thought was the best value, so that is why he chose to charge commissions usually half of what he was getting before. In doing so, his business is on track to double every year.
For buyers, Derek can very easily put himself into your shoes. Nothing was ever inherited for him. He has worked from the very bottom with millions made on his own deals. He is happy to help others do the same.
Is 20% Ever "Standard"?
In a word: No. In the Edmonton market, most successful negotiations happen within a 3% to 7% range of the asking price, assuming the home was priced correctly to begin with. A 20% counter offer is a "statement" move.
If you are a buyer making a 20% lowball offer, you risk offending the seller to the point where they won’t even respond. If you are a seller countering 20% above a reasonable offer, you risk chasing away a qualified buyer. If there is that much of a difference, I usually advise the sellers not to counter at all. If the buyer is actually interested, they would need to come back with something more reasonable in order for the seller to look at it.
However, there are times to be aggressive. If a property is drastically overpriced, I will tell you. If a buyer’s offer is insultingly low, I will help you stand your ground while keeping the door open for a more reasonable conversation. My goal is always the same: to get the deal done at the best possible price for you.
Why Derek Keet?
The Edmonton market is filled with agents, but very few offer the combination of experience and value that I do. When you visit https://dkeet.ca/, you’ll see that my approach is different. I am transparent about fees, I am aggressive with marketing, and I am obsessed with the details of the contract.
Putting in an offer is the most stressful part of the process for most people. There’s a lot of "what if" thinking.
"What if they say no?"
"What if I overpaid?"
"What if I lose the house?"
My job is to remove the "what if" and replace it with "here is why." How can we take the emotion out of it? How can the outcome be better without the stress?
Final Thoughts on Offers and Counter Offers
So, is 20% too much? If it’s based on emotion, yes. If it’s based on a lack of information, yes. But if it’s based on a deep understanding of market value, repair costs, and local trends, it might be exactly what is needed to start a real conversation.
Don’t navigate these waters alone. Whether you are selling a luxury estate or buying your very first condo, you deserve a REALTOR® who understands the value of a dollar. You deserve the top-tier service and the significant savings that come with working with Derek Keet.
Ready to see how much you can save while getting the best representation in the city? Head over to https://dkeet.ca/ to learn more about how I can help you buy or sell your Edmonton home. Let's make your next real estate move your best one yet.
Derek Keet | One Percent Realty
Edmonton REALTOR®
587-803-0396 https://linktr.ee/dkeet
Edmonton Real Estate Agent | Helping Homeowners Sell for Top Value
