Low Ball Offers - How To Deal With Them

    When sellers receive a low ball offer, it seems to cause greater offense than if the buyer poked them in the eye. The common reaction is to feel insulted., and angrily reject the offer right off hand. But, low ball offers are a fact of life when it comes to real estate, especially now with the market being the way it is. No need to feel insulted, no need to get angry-here is what to do if you get one.

     First of all, getting an offer-any offer-is a good thing. It means someone liked your house enough to want to live in it. There are several possible reasons for the low ball offer, so don't assume anything about the buyer's motivation right away. Instead, try to find out more about their reasoning for the price offered and then write them a counter-offer.

     Did their agent do a Comparative Market Analysis (CMA) for them? Ask to see it. Are the homes they are using for comparison really comparable to yours? Your agent will be of great help here! They don't have a CMA? Then how did they come up with their price?

     Or is their reason for the low ball offer something they didn't like about your house that you can correct (like new paint, carpet, other repairs you may have missed)? Is there anything else the buyer needs that you can offer, such as a faster move-in date or another incentive? Try to find out about the buyers' situation as much as possible as this will make negotiations easier.

     Thank them for the offer? Tell them you appreciate it, and then give them your counter-proposal. Provide them with the proof that your price is reasonable (the  CMA your agent did for you, list of recent upgrades, etc). Don't immediately counter with the lowest price you are willing to accept, as the buyer may expect a few rounds of back-and-forth. Be upbeat and be friendly-let them know that you want to work with them. If the back-and-forth continues, keep the process alive by encouraging the buyer not to give up. Of course, you don't want to stretch the negotiations on indefinitely-the buyer may eventually walk away and pursue another property if they think they can't work with you.

     Now there is another thing to consider-the possibility that what you thought was a low ball offer is actually not that bad. I know that it can be hard to swallow, but if your house has been on the market for a while, its value may have gone down. So, double-check your numbers. Ask your agent for the most current Comparative Market Analysis-what does it say? If it looks like the market has taken a dive, don't despair right away. How much do you need to net in order to meet your goals? Is that still doable even with the lower price? Keep in mind that if you are selling your home for less than what you hoped for, you will also be buying your next house for less than you thought. The market is the same for everyone.

      Throughout the process try to be flexible and patient. It's just as stressful for the buyer, so try not to get upset with them. If an agreement is possible, and all parties work together in good faith, then an agreement will be reached.