Special offer

COUNTER THAT LOW-BALL OFFER!

By
Real Estate Agent with The Medford Real Estate Team DRE#01223788

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.

 

Comments (3)

Broker Patty Da Silva Da Silva
Green Realty Properties® - 954-667-7253 - Cooper City, FL
Top Listing Broker

Hi John. I hope you are having a great Monday. Excellent post BTW.

Nov 11, 2013 12:53 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Well, the low ball offer might be the right offer. I just sent the offer on the flip that was bought few months ago. Now the seller asks 2xmore with almost no work done( lands-capping, floor and counter additions to the kitchen. Comps don't support the price( and they are on the market almost 3 months(tip: time for a price reduction.). Yet, when I asked the listing agent about price he said 'the seller made his mind, this is the price he wants'. So.......I'm waiting two days for a response, so far no email no phone call for my above market value but below what they want.

Dec 22, 2013 03:48 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

 

Inna,

I agree with your strategy in this case. You certainly would not urge your client to pay above market value a house that appears to be to be overpriced.

Dec 23, 2013 12:31 AM