THEY OFFERED WHAT?!

CT, I should email this to one of my sellers.  They received a low-ball offer yesterday, and they took it poorly.  Ironically, the buyers were offended that the sellers ignored their offer.  Children, children, stop that!

I agree it does depend on the circumstances.  If your market is like ours here and you have multiple offers you can just reject the low ball offer.   But every market is different and we have to be the ones to lead the sellers through the process with as little emotion and as calmly as possible.  Good post.

I try to prepare the seller for a low ball offer.  I like to discuss the comps with the buyer's agent.. and then I inform the sellers that the buyer may be "testing" the seller.  We do the dance and see if it will come together or not.  I had one last year that started 40K apart and then ending up coming together and closing.. No need to get exicted.. just see where things go.

Simple rule of thumb - do your diligence. Yes, as a buyer's agent, I'd expect the agent will explain the buyer how the market is. Even after that, if the buyers want to make a low ball offer, just do it. 2 or 3 such offers means buyers are not motivated. Your time is better spent with family or other potential buyers if your pipeline is full.

As a seller's agent, just present the offer. You may be surprised sometimes that sellers may be okay with the offer.

Our job is to educate them. The clients are suppoesed to take financial decisions. Stay away from outcome - and you will see how easy it is to work with low-ball offers.

I must tell you that although a low-ball offer can make a seller and a listing agent cringe... I have had many, many homes sold and closed over the years that started out as low-ball offers.

It's all in how you look at it.

Good advice. If you are SURE the house is priced right, remain calm, and quietly send Louie Lowballer on their way.

when I am the buyer agent I always show them the market analysis and tell them they can offer whatever they want, that I will write it up but they should not be disappointed if the seller turns it down and if theu lose out on the house because someone else puts in a better offer.

While it's tempting to do the red stamp (or something similar), I agree w/ your advice to remain calm and determine a better offer.  Sometimes, this may result in an actual sale.  The red stamp may sound fun, but it's a deal killer.

I always counsel my clients to counter any offer, even a low ball one.  It is better to be engage the potential to see if they are bottom fishing or if they are realistic buyers.  Also, you can honestly tell any inquiring agent that you have an offer in hand, so if their client likes the property they need to submit something in writing asap.

As you said, stay calm... then work on the contract you have to see where it goes.

In some cultures, it's just the way people do business, they offer lowest price they can think of, and work their way up. They even say if the price is accepted without any negotioating, it takes fun out of shopping. So, USA being a true melting pot of cultures and nations, this is something to keep in mind as well. 

 

I don't like them.  They are insulting, but I try and treat them wit h a little bit of respect, at least to the other agent.  When all is said and done, that buyer and seller will have carried on but the agents remain.  I think people will try to lowball at first, much to their agent's dismay, and a good strong "NO" brings the buyer back to reality.

Great post and I agree with your point that some folks just have a price stuck in their minds. I see it even in hot markets. Market analyses and trends do help with some but there are folks who just won't budge, as for most part, their budgets don't keep up with their desires and wants. I do my best to counsel and guide my clients in terms of the appropriate pricing, putting themselves in a seller's shoes, and alternatives to consider. In the end, if they still want to go through with the low ball offer, I speak with the listing agent and send it in with ample guidance to my clients about possible rejection. 

Anna in #29:  What you say about some cultures where it is normal to start out the "haggling" with a really low offer... I have seen it happen, as well.  It is part of who they are, and how they grew up.

Once we as agents realize that... it changes everything.  The perspective is totally different.  Those clients are not trying to "steal" anyone's property... they are just in the middle of their cultural version of "horse trading."  To them, it's just playing "Let's Make A Deal."

I think it is very much up to us as agents to share this with our sellers to insulate them from the emotions that come with them thinking they are being financially assaulted by these low-ball offers if and when they happen.

Great comment !

Hi Christiansen, truer words have not been spoken (or written) "Don't get mad.  Don't take it personal.  Just counter."

Respond with a curve ball, or a spitter.

Consider any offer the opening of a door. Your job is to get everybody to walk through. 

Door open, hopefully meaningful dialogue.

If there is no realism, then move on. 

Jared - Much as Cynthia's idea sounds satisfying,, I think it makes good sense to stay calm and counter.

Great points, well deserving of a feature.  Congratulations and wishing you continued success. A

Jared, when I get a particularly crappy offer, I talk to my sellers before I tell them what it is. They mostly laugh at the low ones.

Thats good advice. Sellers need a good agent to remind them that the list price is solid and that there are some buyers that are just looking for a steal. Stick to the price, counter with the full price and see what happens but don't get mad.