LOW BALL OFFERS...And How to Respond to them!

Dear BonnieJean -

I guess I would respond differently - I would just give a counter - perhaps $228,500. Since you (agent) feel you have priced it properly, I would just reply with a number very close to Listing Price.

I guess what I haven't said is that I don't see ANY offer as "insulting". First, the Buyers are handicapped by the late night TV "experts" spouting RE advice. Second, the Buyers are only acting from their own point of view - taking care of themselves. Third - their agent let them down by submitting the low-ball offer if your price is truly on target.

That's my take on the idea of "insulting" - it doesn't exist in real estate offers. Real estate offers are business transactions.  "Insulting" exists in relationships and those Buyers don't even know your Sellers!  No relationship - no insult --

Have a happy day -
Lynn

PS Suggested/Re-blogged

First of all, an offer of 85% is not insulting, merely an opening gambit.  One of my buyers recently put an 86% offer in on an overpriced property and the final price was 87%.  That said, it's unlikely that such an offer would be approved by a short sale lender.

Secondly, used furniture is virtually worthless and, in most markets, would be considered personal property that should not even be considered in price, property condition negotiation.

The response above seems a bit to "agent centered".  A simple counter from the seller would probably get to the next step faster without involving "feelings".

Why all the virbiage.  Why not just counter????

And here I was expecting an offer around $150,000.  In my market, opening offers from $20-$40,000 below asking are quite common.  Buyers today think all sellers are in trouble and are looking for a "deal."  But your offer is not that bad.  Talk it over with your sellers and come back with a counter that lets the buyers know you have a handle on the market value of your home but are willing to negotiate.

I always leave furniture out of negotiations.   

Hi Bonnie Jean - I agree with Lynn, but you can only lead your sellers so far.  I have had low-ball offers and sellers who just didn't want to deal with them so they didn't counter. We can talk about it, but in the end, the sellers will decide what they want to do.  It's their decision.

Lynn your thoughts where exactly what I felt after reading. If the agents and sellers always take into account this is a business deal and some people have different negotiation tactics. (The buyers could have felt the list price was fair but their agent wanted to be a hero and see how low he could get the home for them). I don't try to figure anything out during the negotiations. I show my sellers the net and advise to what we need to counter at to be at the net my sellers are looking for. I try to keep my feelings at home because they can ruin deals.

Hi Bonnie, I would have to agree with Lynn & Lenn and as an agent I think we need to be careful about getting insulted ourselves and try to keep the emotions out of it as much as possible.  We need to help me rational and curb the emotions of buyers and sellers and if we are annoyed or insulted by something that would show.  Of course we all have different markets, but that offer in my market also wouldn't be terribly unreasonable.  Really, the response is to counter - you never know what a buyer is going to do.  Maybe they are fishing and even if you countered at full price they'd take the offer.  That has happened to me before, you never know how people will respond, even if their agent responds that they are firm on their offer price, let them be the one to reject and end negotiations.   Put something in writing back to them that they can respond to.  If they were willing to pay more and you just reject their offer then you miss out on a potential sale.  In the end, though, it is the seller's decision and not yours. I also think saying too much before the seller has even been presented with the offer can be a mistake.  Let them respond and leave your initial response out of it.  My two cents.  Did it end up coming together?  -Kasey

Bonnie, I not insulting...buyers are always testing the market because some sellers simply need to get out of a house and will accept low ball offers.  As the market slowly changes and those "low ball" offers go no where buyers will start getting realistic...in my opinion I think it's almost always a mistake not to counter...it is after all a starting point.