Special offer

Got a low-ball offer? Don't get mad!

By
Real Estate Agent with RE/MAX Capital City

Interesting post on TexasRealEstate.com:

Sellers: Would you respond to an insult?

When I represent sellers, I provide in-depth market analysis and pricing consultation -- before accepting the listing, with regular updates while the home is on the market, and again to help with consideration of purchase offers.  When I represent buyers, I provide in-depth consultation on property value before writing purchase offers.  In both cases, most clients appreciate the work and knowledgeable advice.  Some acknowledge the advice and choose to ignore it.

Just as some sellers insist on overpricing their homes, some buyers insist on "going low," at least as a starting point.  I generally choose not to take unrealistically priced listings, and I avoid representing "bottom feeder" buyers who assume that all sellers are just gold-diggers.  However, when I have a buyer who wants to offer something close to realistic market value for a badly overpriced listing, I am happy to write that offer.  In the Austin/Central Texas market, it's up to the listing agent to present that offer and provide professional advice and counsel to his or her client.

As the TexasRealEstate.com article notes, sellers can feel insulted by a low offer.  There's an old saying in this business:  "Don't get mad at them.  They're the ones that want to buy your home.  Instead, get mad at all those people who saw the house and didn't even make offers."  That's not just being cute.  It's good advice. 

When selling your home, accept the fact that some buyers just won't make a strong first offer, but will negotiate reasonably.  Others won't budge.  If you don't respond, you'll never know which is which.  Even if you don't send a counteroffer, just an invitation for a new offer, supported by well-researched market information, is better than just getting mad.

Keep in mind:  To you your house is a home.  To the buyer it's still just a house, and there are a lot of those to choose from.

Posted by

Bill F. Morris, ABR, CRS, CDPE, e-PRO, MBA
RE/MAX Capital City
Call or Text:       512-785-3345
Toll-Free:           1-800-692-8784, x 162
Email:                 
bmorris@remax.net
Web:                   www.eHomesByMorris.com  

Your personal referrals are the best measure of my success!

Geoff ONeill
John L. Scott Medford - Medford, OR

I particularly like the "they're the ones who WANT to buy your home".  Lately, I have seen nothing but low offers on property, and these are below current market value.... way below. 

Feb 04, 2011 02:31 AM
Tommy Taylor
Taylor Properties & TexasForSale.net - Kerrville, TX
CNE- Texas Hill Country Realtor

Since 2008 we have seen far more of the "low ball" offers than experienced in years past. A good agent knows how to handle both the buyers and sellers in this event, Sounds like you have done a good job with it and your clients will benefit from your knowledge and attitude towards the negotiation process. 

Feb 04, 2011 02:32 AM
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

It's a fact of life Bill, some buyers just throw in an offer to test the "motivation" of the sellers. It's easy enough for the sellers to counter with a figure very close to the original asking price to test the "motivation" of the buyers. No need for anyone to get mad.

Feb 04, 2011 02:34 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Bill, What a Great post.  Thanks for sharing.

Feb 04, 2011 02:37 AM