How To Handle Lowball Offers - First Minimize Emotion
This post has great input for both agents and clients who are dealing with a 'low ball offer'. Thank you to Shelia Newton of RE/MAX Realty Professionals in Anderson, South Carolina for sharing her experience and expertise on the subject!
It's a common scenario in today's real estate market for sellers to have their eyes on getting a certain amount for their home, then the buyers make a lowball offer that insults and offends the sellers and they refuse to even consider it.
How do you turn such a situation around in your favor toachieve a successful sale closer to the asking price? The seller's motivation plays a major role in your response. For example, if the seller wants to sell their home quickly and a buyer is offering less but can close quickly, it's worth them at least considering the offer. When lower-than-expected offers come in, ask for an explanation from the buyer's agent and compare home sales to see how things stack up.
Remove all emotion from the transaction. Regardless of what kind of offers are received, the sellers should not take it personally. ( this is where you come in to coach them on this up front! ) Make sure the seller understands that usually when a buyer writes a lowball offer, it's not an indication of what their house is worth - but rather what the buyer can afford.
Try to find wiggle room by negotiating the terms, such as the moving the timeline, closing costs and repairs. Some money can be gained back that way. If the seller is reluctant to lower the price but you're not having a lot of showings, have a serious talk with the seller and have them consider their motivations.
When a seller says no to low offers, that means he or she will be carrying more payments on the house for a longer period of time ( this needs to be explained in detail and on paper to them ). If a seller can afford the daily cost of staying in the home and wants to get the best bang for the buck at closing, then there's not anurgent need to move so they can wait on the higher offer. Just make sure the listing agreement matches the timeframe it may take!
Motivated sellers will work with their agent, who then works with the buyer's agent, to negotiate - even if that involves countering. You can even counter at, or close to, full price if need be, but at least counter! It takes teamwork to arrive at a conclusion that everyone's happy with.
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Sheila Newton Team, Inc
RE/MAX Realty Professionals
100-A Miracle Mile Dr.
Anderson, SC 29621
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