How to Handle a Lowball Offer Like a Pro (Without Losing Your Cool)

Hello Jean - even though a real estate transaction is business, it can be difficult to separate the emotional aspects.  While not easy, it is necessary.  

Thanks for sharing great info on how to handle low ball offers!!!

A lowball offer might not be a dead-end. It could be the start of a deal. I’ve helped many sellers turn these tricky offers into real sales, and today, I want to show you how to handle a lowball like a pro.

Good morning, Jean. I always tell my clients an offer is a door opening for negotiations. Don't reject out of hand as you never know where negotiations might lead. I did have one offer once that was 35% below asking price, which no one argued was not reasonable. We decided to counter at 35% above our asking price. The buyers were shocked but they got the message.

How a seller handles a low offer determines whether a deal will result. As Nina Hollander, Broker 's example shows, sometimes potential buyers need a taste of their own medicine.

Good evening Jean,

You are right..don't take a low ball offer personally. It's just the beginning of negotiations! You'd be surprised how often you can find a middle ground!

Hi Jean - You've offered some good tips about handling a low-ball offer. A low ball offer is better than none at all. 

Great post! Good reminder too. I love to negotiate, and I enjoy using my well crafted counter offers, mostly pre-filled out from years of knowing how to clean up an offer in my sellers' best interest. So, unless a seller refuses, I counter every offer.

Hi Jean:

There are some important tips here for dealing with a low ball offer and potentially turning negotiations into a positive.

Jeff

Hi Jean Richer 

    I had an offer a rental property recently... 60 cents on the dollar!   The Agent on the Buyer's side, before presenting the Offer, told me, "My guy is an investor; he wants to pick up a number of rental houses... you and I both know that there are many, many listings in that price range and in that part of Tallahassee... he is making offers on over a dozen of them... he respectfully offers this price, and he understands if your Seller rejects it out of hand... the Buyer also wants you to know this is a firm offer, no counter on the price will be accepted."

    I relayed those words to my Seller.   He groaned, then he said, "Fred I know that part of town is becoming depressed.  I don't want to keep that house.  No, I am not making much profit, but I need to let it go."   He ACCEPTED the 60 cents on the dollar offer.

   Seller was - sort of - happy.  The buyer was happy.  Both Brokers (including me) got paid.  The story ended well!

   * I realize that an investor-owned house is not quite the same as John and Mary Smith selling their one and only personal residence, where little Timmy played in the backyard, and Mary had her flower bed, and there was a lot of emotion involved in the sale.   I've had low-ball offers on those houses, too.    You present them, you counter them as needed, and you bring the parties together.

Excellent advice. Ah, if only every agent would read this and follow suit.

Jean,

I enjoyed reading your post and watching the video. Great advice, and the slides illustrating your words were very helpful, too. I am of the same opinion - even though it's a low ball offer, it's just the beginning of the conversation. Low ball offers can work, I think you make a great point to understand the Buyer's mindset first, and then respond.