Home > Blogs > Kris Wales > Macomb County MI real estate blog

Low Ball Offers are really Show Me The Green offers!

By Kris Wales

Real Estate Agent with Keller Williams Realty - Lakeside Market Center

September 14, 2008 11:47 PM

If you've spent any time within the last year reading about our local (Macomb
County MI) real estate market then you've come across the phrase Low Ball
Offers more than once.

Many people have written about what constitutes a Low Ball Offer on a home
to purchase, and there are as many varied opinions as there are people.

My definition: Low Ball Offers should be highlighted in green.

Green = Money.

To the home owners who have been offended by lower than expected offers I say
this: Be happy you received an offer. Be very happy. Take off your "this is
offensive" hat and put on your "It's a business decision" cap instead.

There are many reasons that offers on your home come in the way they do.
Comparable (apples to apples) recent sales prices, condition of the home, level
of buyers education in regards to current market conditions, a buyers agent trying
to get the best deal for their clients, etc etc etc. The list goes on and on.

Look at the Low Ball Offer on your home as a chance to negotiate. The negotiating
tool is there in front of you, in writing, with a good faith deposit by the buyer given
to their agent. Work with the negotiating tool (the offer to purchase) and your real
estate agent.

Sit down and examine the bottom line (the $$ in your pocket at the closing table)
and negotiate. You will be pleasantly surprised as to how many of the Low Ball
Offers are successfully negotiated to be the sale of your home.

Wouldn't you much rather receive a Low Ball Offer that you can negotiate than
no offer at all?

More tips for Macomb County MI home sellers:

Pricing your home

Danger in overpricing your home

© Kris Wales a Macomb County MI real estate agent - Search homes for sale

Re-Blog

Comments(14)

Comment

Show All Comments

Sort:

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

That is what I have yet to understand. Agents are like this is ridiculously low, well how do you know you arent the one making the decision. Maybe the seller is just happy to get and offer. If the person is interested enough to make an offer give them the time or courtesy to at least counter with something and dont be greedy. Think of what it might mean to sit another 4 months on the market and continue to pay your mortgage and go now where or better yet not sell at all.

Sep 15, 2008 12:26 AM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Heather: Exactly. Sit down with the seller/s, go over the offer and see it for what it is: A real live offer. Negotiate if you don't like the offer, but put on your "It's a business decision" cap.

Sep 15, 2008 12:37 AM

Marie Westerman

Blanchard and Calhoun Real Estate/ Wilson Parker Homes - Evans, GA

New Homes Sales Specialist Evans GA REALTOR

Yes do the math.... Be thankful someone is wanting your home thats been on the market how long now????

Sep 15, 2008 12:41 AM

Renée Donohue~Home Photography

Savvy Home Pix - Allegan, MI

Western Michigan Real Estate Photographer

The answer to your question: YES!!

Low balls are a signal sellers usually need a price reduction. Present the offer, tell them to sleep on it but get the price reduction signed immediately before anything else! This strategy usually works for me and in the middle of negotiating, BAM, you get another offer :)

Sep 15, 2008 01:08 AM

Kathy Fey

Fey & Associates - Dacula, GA

Great post. Just because a buyer low balls an offer does not mean that is what the seller will take. Agents need to realise that just like any other offer, it is a starting point and the buyer is showing interest in the house.

Sep 15, 2008 01:43 AM

Elizabeth Nieves

The Elizabeth Nieves Realty Group - Durham, NC

Bilingual Raleigh - Durham North Carolina Real Estate Team

EXACTLY!! As long as you have an offer...keep 'em talking. I've seen many a low ball offer turn into a decent offer after some good, old-fashioned negotiating. I NEVER let a client flat-out refuse an offer without at least trying to make it work. GBU!

Sep 15, 2008 12:24 PM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

Kris, there is NO such thing as a low ball offer in MIchigan. I will negotiate the you know what out of every offer.

Sep 15, 2008 01:03 PM

Thesa Chambers

West + Main - Bend, OR

Principal Broker - Licensed in Oregon

I agree with Missy - 6, 10 even 12 counter offers - loved the colors

Sep 15, 2008 02:59 PM

Susan Walters

Keller Williams Realty, Ann Arbor, MI - Ann Arbor, MI

The only offer a seller should be insulted by is the one that is never written. I will present any offer a buyer asks me to present even after documenting with them what a reasonable offer might/should look like. If it is a bank deal, lowball away - they are so often overpriced. Walking away is always an option for a buyer. Sellers are very interested when the same buyer comes back weeks later, perhaps with the same offer. I have closed buyer deals that way, and I have had sellers say, "If we had known then that another offer would not appear, we would have worked with that one last spring." Hindsight is 20/20 and can be costly.

Sep 15, 2008 05:23 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Marie:   It has taken a couple of years to get away from the "I want top dollar" mindset to the "Oh, an offer!" one. Thankfully most sellers know that to negotiate is the best thing to do.

Kathy: Showing interest Bingo! Any interest is good. Everything else can be worked out most of the time.

Renee:   Sleeping on it is always good advice. Sometimes when you put a few hours between the initial shock you can come back and deal with it in a business like manner.

Elizabeth:   I've only had one seller outright refuse to negotiate and they wrote "No way" on the front of the offer and asked me to send it back. I told them unless they insisted I would wait until the next day. They reconsidered, countered, didn't have the counter accepted, but I know they felt better that they at least tried.

Sep 15, 2008 10:44 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Missy: Me too. I treat every offer as exciting news, no matter what the offer is. The excitement is contagious to the seller then, and they get in the mood to negotiate, and re-negotiate, etc etc.

Thesa: Thanks! (Google docs, worked well for formatting fonts, but a bit of a pain in formatting margins..)

Susan: You nailed it! Another 6 months of mortgage payments, taxes, maintenance...it all adds up to more $$ out of the pocket of the sellers. Look at the long term ramifications of not negotiating.

Sep 15, 2008 10:47 PM

TeamCHI - Complete Home Inspections, Inc.

Complete Home Inspections, Inc. - Brentwood, TN

Home Inspectons - Nashville, TN area - 615.661.029

Kris, good point! I l know that there are many sellers here in this area that would would be glad to get an offer...

Sep 15, 2008 11:03 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Michael: I know...any offer is better than no offer.

Sep 15, 2008 11:28 PM

Jessica Bigger

Bigger Communications - Reston, VA

Freelance Real Estate Business Writer

Kris - Low Ball offers are relative and I agree with some of the folks here. In most cases a "low ball" offer is usually a fair offer and it's the seller who is usually overpriced. Maybe one thing we could do as listing agents is to prepare our seller for this situation ahead of time so if it happens they are prepared to negotiate rather than let the deal go nowhere.

Sep 16, 2008 05:57 PM