How to INSULT a SELLER in one easy step.

I tend to agree with most of the comments below.

1. lowball offers often tend to come from investors

2. Always counter any offer

However, this recently backfired on one of my sellers, so just know this doesn't work all the time. Sometimes it is best to just take the first offer and run.

Buying or selling your home is often emotional and stressful.  Our clients may not realize how quickly emotional attachment can jump into the middle of things.  One of our roles is to prepare our clients for when the emotion beast jumps into the fray.

Great blog and very true! Doing that will not help the buyers get the home. On the other hand I just submitted a very low offer for a house. Although my clients are young and this was all they could afford. The listing agent seen how much they loved the house. I put in an offer (it was pretty low but I told them we should at least try.) The seller accepted! (The seller recieved higher offers in the past but denied them) He accepted my offer because he wanted to help these first time home buyers because they were in love with his property and not picking out everything that was wrong with it. Sorry long story haha

As a seller that has received a lowball offer, I know it doesn't put you in the most charitable frame of mind at negotiation time!  Even when you remind yourself that it's a business transaction, the hard feelings persist, and in many cases I'm sure buyers end up paying more after a series of counteroffers than they would have if they had just made a reasonable offer based on comps in the first place.  Good advice to counsel your buyer clients to try to avoid completely insulting the seller!  And for your sellers, try to have them keep in mind that the buyer's goal to get a great deal (even if it's a little too great) and not insult their property!

My brother in Chicago recently recently a low-ball offer on their home, and it included a heart-warming letter from the buyers telling my brother how much they loved the house!  Talk about a mixed message.  Of course, my brother wasn't impressed.  He told his agent in Chicago he had no intention of even responding to it.  Thankfully, the agent, with my sister-in-laws's help, helped calm him down.  Long story short, they did end selling their home to this buyer. 

I have seen this from both sides. We have to present all offers no matter how embarrassing. And, I have had a seller or 2 who reject and say that the buyer will be a pain in the neck the whole transaction so it isn't worth countering.

This is such a hot topic, especially when you work with investors who want a deep discount. As always education is the key! Thank you for posting this!

It depends how bad they need to sell as to how they will react.  I just got a lowball offer today and my seller is not too happy about it but is countering... Any offer is better than no offer.

I'm a big fan of at least countering the offer. It might just be a test to find the owners rock bottom. But you are so right, the problem is, you have to spend the first few hours helping the sellers past the insult. It is one thing if they are over priced, it is another if it is priced correctly and fairly. 

Very interesting and thank you for sharing.

I have a friend in the high end auto business. When a customer comes in for a new car and want to trade their old one, she is always amazed at how the the customer wants top dollar for their old car and want the new car for nothing.

Somehow the price of the new car is nothing while the old car defies the market and appreciates. I understand that people feel its worth more because they love it, but its the market that places value, not how many times you wash it. 

The purchase or sale is emotionally driven and not market driven for most and its hard to explain to a client that their 300K home isn't worth 400K or their 100K offer below asking on a home isnt going to fly.

I've written my share and I'm sure I will write a few more . . . of which I can't stand, but I need to follow the client's instructions.  I've never had any low ball stick.

A few days ago, I got an offer of $15,000 for over 200 acres of remote land listed by me at $50,000. The land was VERY difficult to get to. The Buyers said they walked over 5 miles to see the property. I wrote the offer but the Buyers backed out before I could present it. I would have presented it because I do not want to miss a chance to make something happen with this property.

Sellers hire us because of our experience handling situations like these. I have found that the way you present the lowball offer to the sellers matters a great deal to the way in which they respond.

I always go over the good parts of the offer 1st, showing the commonality between the two parties.  Then I go over the diiferences.  If I sense that the sellers are personally offended by the lowball offer, I suggest they sleep on it and contact them the following day day when cooler heads are prevailing.  They may have been ready to toss the offer in the trash when I 1st brought it to them, whereas the next day they are usually willing to submit a counter.    

Christine is right. They may go to another agent who will write the rediculous offer. After the rejections, the client may get the point.

Sadly, you do not wish to have other agents think tht it is ok to low ball them.

If the offers is based on comps, there is justification for the low offer as sellers can be unrealistic....

It's emotional though..

Great post thank you for sharing. Yes sellers do get insulted when a low ball offer arrives and in most cases find it hard to get past the initial low ball offer. Working with the seller on a low ball offer is yes indeed a task that needs care and allowing them to vent thier feelings and working through those feelings. As a buyer one must remember that it is your right to submit a low ball offer but the response might not be like you want it to be. Submit a realistic offer and if the comps show the price you are offering than that is what you should do. Low ball offers fly into the night. 

Obviously, showing the client what the market will pay is always a good way to go. Sellers sometimes think that their house is worth far more than market value and buyers sometimes think that their offer, no matter how low, is a good one.

Although it is an emotional process, facts are facts and the market is what it is..

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GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR LEASE AND SALE AT THE LOWEST RATES AVAILABLE. OTHER FINANCIAL INSTRUMENTS SUCH AS MTN, CD, DLC, PB ARE ALSO AVAILABLE.

I am a direct Mandate to a genuinely renowned Investment Finance Company offering Cash & Asset Backed Financial Instruments on Lease and Sale at the best rates and with the most feasible procedures.

Instruments offered can be put in all forms of trade and can be monetized or discounted for direct funding. For Inquiry contact
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BGs | SBLCs | LCs | DLCs | PBs | BANK DRAFT ET AL GENUINELY BEING LEASED AND SOLD AT LOW RATES.

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I am a direct Mandate to a genuinely renowned Investment Finance Company offering Cash & Asset Backed Financial Instruments on Lease and Sale at the best rates and with the most feasible procedures.

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Skype: jursten.consults