Responding To A Low-Ball Offer
"Low-Ball" offers have become very common over the past few years, and the article below gives some good perspective on how to truly deal with a low offer: calmly, without emotion, and working on toward seeing if you can find some mutual ground/a meeting of the minds somewhere. Certainly I have entertained (and written) some low offers in my career, but sometimes "baby steps" will have all parties finding mutual ground.
Responding To A Low-Ball Offer
The euphoria of a new offer is quickly crushed by the writing on the paper. Dreams of a quick closing and moving on with your life are soon dashed by terms that would make even a rascal blush. So what now? Reject the offer and hope for something better? Perhaps take the home of the market and wish for better days? Before you sign that termination agreement, let's examine how to properly respond to a low ball offer...
- Remove emotion from the transaction-- Don't get caught up in buyer request for update allowances, closing costs, or other considerations. Focus on the bottom line. Determine how much you will net from the offer and go from there.
- Avoid atempts to "teach the buyer a lesson"-- I have had sellers want to counter OVER their initial asking price, just to show the buyer that they "know how to play the game". Such attempts almost always end with a dead transaction. What exactly was the lesson?
- Make Sure Your Home Is Not Overpriced-- That "low-ball" offer may be closer to market value than you realize. Have you agent search comparable transactions over the past year. Pay special attention to homes that recently sold.
- Ignore the offer when writing your counter-- Again, avoid the temptation to counter 1 dollar under the asking price. Determine a fair counter, and present to the buyer in writing. I received a low offer on a listing last week. My sellers made a fair counter (still THOUSANDS over the low-ball price), and the buyers accepted!
- Tune out the noise-- Friends, family, your co-workers, everyone LOVES to give real estate advice. "If it were me I would put a giant red "X" on the offer and mail it to them". Did any of these experts sell 40 homes last year? If not, listen to your real estate agent.
Not all Low-ball offers work out. Frankly, there are "investors" in the market who only want a home for pennies on the dollar. In our rising market, I hope these guys have a steady day job. Remember, it is human nature to try to acquire something at a discount. The key is making a first fair counter to keep the deal alive. My sellers listened and we are set to close in early June. Will you?
Searching for a Top real estate agent in Alexandria Louisiana? Need help selling your Pineville, Louisiana home? Either way call Doug today!
Doug Rogers
Associate Broker
Century 21 Millennium
Century 21 Millennium
donahue Ferry Road
Pineville, La, 71360
(318) 640-2121
Each office independently owned and operated. Equal opportunity housing. Doug Rogers is a licensed real estate agent in Louisiana
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