When a seller whom I represent in Fremont, Ca. is on the receiving end of a low ball offer, here is what I suggest.
Counter!
Sure, you can ignore that insultingly low offer from that scheming thief of a buyer (and agent) but that would be a deal killer. After all, buyer, you do want to sell your Fremont house, don’t you? To ignore is to reject with no invitation to the buyer to submit another, better, offer. The buyer still could submit another offer but his feelings are now hurt because you ignored his first offer. He now thinks you are unreasonable and it would be a waste of time to submit a better offer since you have demonstrated that you are unreasonable.
I suggest a counter offer. The counter offer is a signal that the low ball offer was received but was not acceptable. The amount of the counter offer will signal to the buyer that there may be a chance to get together on the transaction – or not. If the counter offer is for an amount only slightly less that the original list price the signal to the buyer is “don’t waste time with low ball offer and only respond if you are willing to pay what I consider to be a reasonable price.” The counter offer can also signal a willingness to negotiate, perhaps even with a meaningful difference in price from the starting list price. On the other hand, a counter offer at or near the original list price can signal the seller’s desire to sell but at the price that the seller deems is correct.
In the current sellers’ market in Fremont, Ca. why else would a seller counter a low offer? Well, let’s admit that not all list prices are reasonable. An overpriced listing may receive an offer that is low but the offer may be closer to the market price than the seller would like to admit. To counter such an offer may be the needed positive step that leads to an eventual agreement.
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