A Really Low Offer May Not Be a Waste of Time

By
Real Estate Agent with Platinum Properties TN Broker: 208698

Will the Low Offer Get the Seller's Attention?
 

BalanceIn a limited inventory market low offers are not encouraged. We agents know that it can be a waste of everyone's time to submit really low offers and sellers can react by rejecting them with no counteroffer. But what if the property is overpriced and is nowhere near where it should be priced?

When I list a home for sale in Clarksville TN, I strive to get the listing price in a range that concurs with the market analysis. I am sure many other agents do the same thing but in a tight market where listings are scarce, agents tend to relax their standards and will take overpriced listings in hopes a buyer will pay overmarket prices or the seller will come to their senses.

There are buyers that have been looking for a home for long periods of time. Buyers do their homework and know when a home is priced too high. They may like the home so much that they want to take a stab at it with a really low offer that reflects a truer picture of the home's value. They hope the seller will now be at a place where they are motivated or that the seller's agent will show them the list price is not unrealistic. If the seller is stuck on principle, the offer may not go anywhere. But if the home has been on the market awhile, has had no offers and the sense of urgency is getting close, a low offer may get a serious look. Sellers should be encouraged to counteroffer. In many cases it may not be a waste of time.

Another situation is with investor buyers. Remember these buyers are strictly about the numbers and are not moved by emotions. Investors usually can close quickly and do not let the little items of a  home inspection scare them off. They have factored in unexpected repairs and know it is a roll of the dice. A seller should look at these offers seriously as it can get the job done and the seller on the way to their next phase of life. If the offer is too low it may behoove the serious seller to make a counteroffer. Investors mean business and if it works financially the seller may have a sale sooner than later.

Just because the offer is low doesn't mean it should be disregarded. The listing agent should reevaluate the market and share the numbers with the seller. A sale today is oftentimes better than one 6 months later.

A Really Low offer May Still Have Value

 

Listen to an experienced agent and get the facts. When you want to search for a home in Clarksville TN and want a skilled real estate agent to work with you, contact The Real Debbie Reynolds at 931-320-6730.

 

 

Posted by

 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

When you need Real Estate services in Clarksville TN

                  it would be my pleasure to assist you!                             

Debbie Reynolds
"The Real Debbie Reynolds"

Check out all Clarksville TN Real Estate on My Website

                   
                   
931-771-9070 Office | 931-320-6730 Cell

Clarksville TN Homes 

                 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 09/21/2017 11:45 PM
Topic:
Real Estate Sales and Marketing
Location:
Tennessee Montgomery County Clarksville
Groups:
REALTOR LIFE
Lessons Learned
Bananatude
Tags:
offers
clarksville

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Rainmaker
2,253,283
Rebecca Gaujot
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

So true, Debbie. Low offers can kill a deal, but one never knows!! 

Sep 10, 2017 07:52 PM #6
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debbie unfortunately to many Sellers take a low offer personally instead of looking at it as an opportunity to negotiate.

Sep 10, 2017 08:09 PM #7
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

The ones that make wonder are the ones that put in that low ball offer on houses after only 2 days on the market Debbie Reynolds 

Sep 10, 2017 10:07 PM #8
Rainmaker
2,483,111
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debbie I work every offer, sold one a few months ago where the initial offer was less than what the seller paid 20 years ago.... we worked it 15 counter offers later the seller liked his price.... and then there are others like the last two that I was negotiating died ofter the low ball buyer sent us a "best and final" he clearly forgot we were the sellers...Endre

Sep 10, 2017 10:55 PM #9
Rainmaker
4,269,378
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is excellent advice to share with home sellers and their listing agents.

Sep 11, 2017 04:18 AM #10
Rainmaker
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Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

That's right Debbie, and it's what being a good negotiator is all about in this business!

Sep 11, 2017 05:49 AM #11
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Debbie - Even in a hot market and a listing priced close to where it should be, we'll get lowball offers. And if it's the only offer, we'll always counter - there might be a deal there.

Sep 11, 2017 02:51 PM #12
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
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Family Helping Families Buy & Sell Homes 40+ Years

So true Debbie. Every offer deserves consideration. As you said, "A sale today is oftentimes better than one 6 months later."

Sep 11, 2017 10:33 PM #13
Rainer
5,340
Markeshia Calimee
Legendary Realty - Alameda, CA
Specializing in single family distressed assets

 I recently put a low offer on a property that had been on the market for 136 days the average days on the market is 23 days the proeprty needs a ton of work and one on the same street same square footage sold for 200k under what this property is listed for. I submitted a all cash offer no Appraisal or Loan Contingies 10 day close which was rejected.... The listing agent said since the seller is not in a rush to sell they will just let the property sit on the market until a buyer comes along and give them the price they want LOL... 

Sep 12, 2017 06:28 PM #14
Rainer
277,220
Thomas McCombs
Century 21 HomeStar - Akron, OH

I have seen many lowball offers result in sales. 

I always ask my sellers if they would rather that a potential buyer had not made any offer at all, but had just walked away without comment?

The vast majority say would rather have received the offer, even if it was too low. 

 

Sep 12, 2017 06:44 PM #15
Rainmaker
35,688
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

I always say negotiate until you come to an agreement or reach a point where you can't agree. Any offer can be a good starting point.

Sep 12, 2017 07:05 PM #16
Rainmaker
3,927,989
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Many people like to start out with low offers but may be willing to pay much more.  You never know if you don't counter.

Sep 13, 2017 06:38 AM #17
Rainer
419,975
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

The serious buyers IMO don't make low ball offers, they make reasonable offers. Reasonable, like "as is", close in 30 days, no appraisal or other contingencies.  

A knowledgeable and experienced agent can and usually closes what some might consider low ball offers yet depending on the property and its condition when all cost to the seller is determined, a reasonable offer that appears to be a low ball offer might be the best offer for the seller. 

Sep 13, 2017 08:01 AM #18
Rainmaker
1,891,024
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

From a seller's standpoint this is where having an experienced listing agent is so important! Guidance on how to reply to an offer is very valuable!

Sep 13, 2017 09:18 AM #19
Rainmaker
287,344
John Wiley
Jones & Co. Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

I would also add that time can change circumstances. Things happen in a persons life that may mean they need to sell faster than they originally planned.

A low offer may by their ticket to move on.

Sep 13, 2017 02:53 PM #20
Rainmaker
124,354
Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA
Future Home Realty - Seminole, FL
Providing the integrity and service you deserve.

We are obligated to present all offers, even the ridiculously low ones. So, I do. It is helpful, at the time of taking a listing, to have a serious conversation with the seller regarding their motivation and how quickly they want or need to sell. I also tell my sellers that a low offer is better than no offer because you can't negotiate no offers. Low offers have their place. Multiple low offers should scream to the seller that the price is way to high. On the other hand, if the sellers agent has done their job and the seller cooperates with pricing the home fairly, it's easier to just say no with confidence  to an exceptionally low offer. 

Sep 18, 2017 11:22 AM #21
Rainmaker
2,734,388
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Debbie. This is excellent. Agents always ask if there were offers. Even if the low offer is out of this world, it gives you the opportunity to say yes.

Sep 22, 2017 07:37 AM #22
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Debbie

While the risk is the attention you get from the seller is not what is hoped for, you just never know. I believe all offers are worth responding to, rather than ignoring, since some low offers get to the point where the seller can say YES!

Jeff

Sep 22, 2017 04:57 PM #23
Rainmaker
839,778
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent post Debbie. I'm sure you, as a buyers agent, would review all comparables to know if that lower offer can have a chance of pulling together a sale.  Great post!

Oct 02, 2017 03:18 PM #24
Rainmaker
349,889
Matt Brady
Skyline Home Loans - Del Mar, CA
Lending With Competence And Character

A low well-researched offer that is made respectfully will always get a look. Offering a faster close also helps.

Oct 12, 2017 07:50 AM #25
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