The concepts are presented well here on how to deal with a LOW offer on your home. The most important point is stay CALM. Remove emotions. Take a deep breath. Then make a COUNTER after you have reviewed all the terms. It is a starting point, not an end point. This of course all depends on whether there are multiple offers or not on the home. There are lots of negotiation styles. This is one. Inhale. Exhale. C O U N T E R.
How To Handle A Low Ball Offer
Low ball offers are frustrating to homeowners and can be one of the top challenges when selling a home. Most, if not all homeowners have a certain amount they want to sell their home for and when an offer rolls in that’s $15,000 - $20,000+ less than asking it can be downright infuriating.
Real estate transactions have hurdles to work through and they’re not all easily put together. Negotiation is a part of real estate and it’s a regular occurrence for there to be back and forth between the buyer and seller before mutually agreeable terms are found. A low ball offer can be the start of negotiation but, it requires the proper steps be taken in order to turn that offer into something that’s acceptable for the seller and the buyer.
If you are selling your home and have received a low ball offer take a deep breath and consider the following advice on how to handle a low ball offer in real estate.
Why Do Buyers Make Low Ball Offers?
From trusting Zestimates or thinking the house isn’t worth what it’s listed for, to taking advice from their agent or family and friends there are a plethora of reasons buyers make low ball offers. Some buyers just like to throw something up against the wall to see if it will stick, testing the waters if you will.
How To Handle A Low Ball Offer In Real Estate
Control Your Emotions
Easier said than done, I know but, remind yourself this is a business transaction and emotions don’t mix well with business. Letting your emotions take control is only going to cause you more stress. A low ball offer might make you want to tell the buyer to pound sand however before you do that remind yourself that the offer is just a starting point.
The goal is to sell your home and if you tear up the low ball offer and trash it you’re not going to be any closer to achieving your end goal.
Always Respond With A Counter
If you don’t respond to a low ball offer you have zero chance of finding common ground and coming to agreeable terms. On the flip side if you counter there is always a chance through negotiation all parties will come to terms.
There are different strategies when countering a low ball offer.
Going back at full price is one that is very common to send a signal to the buyer that you aren’t messing around. This is not the best negotiation strategy in my opinion because it could deter the buyer altogether.
A strategy I’ve found to be more successful is to respond with the lowest and final price you are willing to accept. Taking this route can eliminate back and forth with the buyer and shows them you are serious about selling but, not at a low ball price.
Whatever strategy you opt to take always, always, always counter a low ball offer.
Review All Of The Terms In The Offer
Price is just one factor of an offer and while it’s an important one it’s not the only component to look at. There are other contingencies and terms in a purchase offer and when you’re deciding how to respond you want to look at each detail closely.
What other terms should you consider?
→Earnest Money Deposit
→Inspection Contingencies (home inspection, radon, and termite in Virginia)
→Financing Contingency or Cash Buyer
It’s never just as simple as price when it comes to a purchase offer in real estate. An offer is a total package and while the price is often what you first look at it’s not the only term to consider.
Look To Your Realtor For Guidance
Low ball offers are just one of many reasons it’s imperative to hire a top Realtor to sell your home. If you are working with a pro a low ball offer is just another day at the office. Your Realtor will be able to guide you on how best to respond and remain calm and professional. Rely on your Realtor for advice and allow them to be your advocate.
Closing Thoughts On Low Ball Offers
You’re not the first seller to receive a low ball offer and you definitely won’t be the last. Take a deep breath and remove your emotions when it’s time to consider how you want to counter. Your end goal is selling your home and making that your priority is what matters most.