Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What is the seller's most likely response if a buyer's offer is deemed lacking?

1. Accept the offer as is

2. Reject the offer outright

3. Respond with a written counter-offer

4. Increase the asking price

The correct answer is: Respond with a written counter-offer

When a buyer submits an offer that is considered lacking, it is most common for the seller to respond with a written counter-offer. A counter-offer allows the seller to indicate their willingness to negotiate and propose terms that they find more acceptable. This approach encourages communication between the parties and demonstrates that the seller is still interested in the possibility of a sale, albeit under different, more favorable conditions. Rejecting the offer outright may close off the opportunity for negotiation, while accepting the offer as it stands would not address the seller's concerns. Increasing the asking price would be an unusual response and could further deter potential buyers, so a counter-offer is the preferred method to align the negotiations closer to the seller's expectations. This practice is common in real estate negotiations where finding a compromise is essential for achieving a successful transaction.