Sellers – What To Do With a Low-Ball Offer
Ever get a low ball offer on one of your listings recently? This type of thing happens on a daily basis to some agent out there. After reading Karen's post I find that I too feel that there are 3 basic ways to handle this. I, like her, do feel that emotions must be set aside as best they can be because no matter what an offer whether low or high is just a piece of paper. Not until it's acceptance is confirmed does it have any value. It's hard for sellers to not be emotional as people do become attached to homes. I truly think sellers have to stay calm and rational when ever they receive a low offer, look at their options, and then take the next logical step. Read Karen's well written post and see if you think if it would help you in explaining the options available to sellers.
Sellers – What To Do With a Low-Ball Offer
It’s difficult, but try your best not to be insulted by the offer.
I know it’s hard!! But buyers listen to so many ‘experts’. Economists. Friends and neighbors. National or state news reports that may be far different from your local market. Sometimes it’s wishful thinking on their part, hoping they’ll find someone who is at the point of desperation. Sometimes it’s trial and error. And occasionally, it may be that they are lacking buyer’s comps for the property they’re considering and don’t really understand the value of the homes in your neighborhood.
First communicate....... Mr. & Mrs. Buyer, Thank you for your offer.
Then you ultimately have three options:
- Reject It.
- Accept It.
- Or, Counter It.
Let’s talk about what potentially happens when you choose one of these options.
Accept It. This isn’t usually the favored option if the offer is truly a low-ball offer. However, a short-selling homeowner may consider this if they’re painfully close to a trustee sale, hoping to halt the proceedings. Whether or not the offered price will fly will now be a matter for the short-selling bank to determine.
Reject It. This sends a pretty strong message. There is nothing about this offer that you like. The buyer may be throwing things up against the wall to see what sticks. Your response very loud and clearly tells them this one doesn’t have even a glimmer of hope of coming to a meeting of the minds, at least from your point of view. If the buyer is a bottom fisher, they’ll learn pretty quickly that yours won’t be a contender. If however, they have a sincere interest in your home, they’ll learn two things 1) If they’re attached to this home but can’t afford the price tag, no matter what the market value, they’ll need to move on. 2) if they’re able to qualify for the list price, but don’t want to pay it, they’ll understand that the two of you are too far apart to make any headway. BUT, many a low-ball buyer offer has come back to the table with a better offer once this hard line has been drawn in the sand.
Counter It. If you can bring the buyer up some, and you’re open to coming down as well, the two of you may find an acceptable point of agreement. If you’ve been on the market for awhile and have had no offers, it’s prudent to at least consider a counter. After all – if you don’t reach a mutually acceptable price and terms, then you’re no worse off than before.
Tri Valley real estate for buyers and sellers. Search for homes in Livermore, Pleasanton, and Dublin.
I can also help you in the surrounding areas of Alameda County and Contra Costa County
including Castro Valley, San Leandro, San Lorenzo, San Ramon, Danville, Brentwood and Mountain House
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