Low Ball Offers: Counteroffer or Just Say It is Too Low?
Assume that your home is on the market and that it is reasonably priced based on recent comparable sales.
An interested buyer makes an offer, but it is far below your asking price. In other words, it is a low ball offer.
As an example, your house is reasonably priced at $250,000. An offer comes in at $175,000. You are willing to lower your price to as low as $225,000, which you have not stated to anyone, although you would prefer not have to do that.
Obviously the potential buyer has an interest in your home, which is why they made an offer, so you do not want them to just go away.
This buyer is so far from your asking price and even from the number that you are willing to take that you wonder what good it would do to make a counteroffer. Let's say that you counteroffer at $245,000. You have hardly made a dent in the $75,000 difference. In this case, you are, of course, expecting the buyer to come up in price.
Alternatively, since even with a small counteroffer, you are expecting the buyer to make a higher offer, why not just say that their offer is too low. Thank them for the offer, but state that their offer is too low and ask if they can come in with a higher price.
By saying that their offer is too low, you are acknowledging their offer, letting them know that it is too low, and you are not saying that you will not negotiate, however you are keeping the negotiating in your favor instead of theirs.
If the buyer does not respond to this, then it is likely that their intention was too simply steal the seller's equity.
While we do not like for any buyer to get away, especially if there are a limited number of buyers, some buyers are so ridiculous that perhaps we should not even call them buyers.
What do you think?