Listing Agents - Low Ball Offers Where Exactly Would You Like Negotiations To Begin?

We received a low-ball (-9%) offer on a property this week and the agent said the buyers wanted an answer before the first open. Listing was only 4 days old. We countered at full price after the open. It goes back and forth now. Perhaps it will come together. But it was not a good move on the buyer's part.

Hi Midori- I had one commercial deal where a few lowballs came offers came in. To my surprise, the seller actually accepted the most recent lowball offer [well...there were other factors which balanced out the cons]. My seller has been unpredictable depending on her mood of the day. I totally agree that lowball offer [or any offer] is a start of negotiation.

I always recommend my sellers counter a lowball offer no matter how silly and even if we go back at $1.00 less than the current list price.  I think it lets a buyer know we are willing to entertain an offer but that their offer was not a reasonable one.  It is also important to keep current on the neighborhood comps.  What can often seem lowball to the seller could be closer to reality than the listing agent has told them they could receive on their property.

Midori - Yes always in writing please and always counter... You gotta start somewhere as long as one side doesn't get insulted and walk away... Of course that happens but sometimes it just isn't meant to be...

Midori - A verbal low ball offer is about as good as the paper it is written on.... put it in writing and see where it goes. The listing agent should never take it personally, or blame the buyer's agent for not educating their client.

The low ball offer is always going to be tricky, because it really depends on the psyche of the listing agent and the seller.  If they have a big ego they will turn their nose up at the offer but hopefully if the buyers agent can present the offer in a way that makes the point that this is a negotiation and they are looking to go back and forth then that will help move along the process to see if a deal can be made.

If you take offense at any offer, you are too emotionally involved.  So what if the negotiations go nowhere, let's negotiate!

Great question, Midori!  I always educate my sellers on the possiblities of "low ball" offers and explain not to take it personally, it's a starting point only.  Curious to see what answers you may receive on this from listing agents that have complained about low ball offers.

What strikes me as a bit ironic is when a buyer insists on a low-ball offer and then feels insulted when the seller does not reduce the asking price, much, if at all.

While wearing my Listing Agent hat, I want negotiations to begin about 5% over list...  just sayin'. 

;^ )

You have to prepare sellers these days to take the emotion out of the transaction and know that buyers will try anything....they don't feel they have anything to lose by picking  a number from thin air....and today no seller in their right mind would use "insulting offer" as an excuse not to counter...

You have to prepare sellers these days to take the emotion out of the transaction and know that buyers will try anything....they don't feel they have anything to lose by picking  a number from thin air....and today no seller in their right mind would use "insulting offer" as an excuse not to counter...

As you say Midori, any offer can be the start of negotiations toward a sale.  Sometimes it is difficult to get a seller to realize this and keep the emotions from killing the deal.

A written low ball offer is a reasonable consideration....verbal, for get it!

Most buyers and investors want to play "how low will you go" it's part of the real estate biz. Even if it's an email that says will the seller consider, I say get the ball rolling! However lenders in a short sale, they're not playing that game. Deliver the real Mc Coy when submitting short sales. Lenders work from cold hard facts.