Responding to Low Offers

Real Estate Agent with Keller Williams

The beginning of negotiations is usually the end of many months of hard work for the buyer or seller. The work ahead requires skill in order to maintain a strong position.

Sellers can lose their advantage if they do not counter an offer that a buyer has made. Even if the opening offer is beneath what the seller feels is reasonable, it is advisable for the seller to respond with a slight reduction from the asking price. The most important component in negotiating is good communication.

The best way to handle a low offer is to counter it with definite terms that are favorable to the seller. A counter offer has two advantages: 1) it keeps the buyer interested, and 2) it moves the negotiation forward and gives the buyer the opportunity to submit another offer that the seller is more likely to prefer.

The J Team

Comments (6)

Ann Guy
NA - Allentown, PA
I have had customers complain about not receiving responses when they offer was not much lower than the asking price. 
May 15, 2007 05:24 AM
Christian Infantolino
Century 21 Winterpark Real Estate - Winter Park, CO
I always tell my sellers that even if it is a low offer, this is a starting point and there is an actual buyer at the table.  I also tell them to think of it in terms of them being the buyer, would they want to start out with a full price offer?  Thanks for the post.
May 15, 2007 05:31 AM
Keith Pate
Keller Williams Preferred Realty - Raleigh, NC
Jason - very well stated. From the buyers perspective, I would suggest making an offer and if a counter is received, possibly submit a highest and best offer. This could save both parties time.
May 15, 2007 05:32 AM
Lori Hakeem Oxley
Charles Rutenberg Realty, Inc. - Tampa, FL
So true.  And these days, you want to try to keep the negotiations hopefully end with a WIN-WIN situation!
May 15, 2007 05:35 AM
Nattalie de la Mothe
Maximum One Greater Atlanta Realtors - Atlanta, GA
Selling Atlanta Homes like a Boss
Great post Jason - It's important to keep the offer on the negotiation table and not reject it outright...
May 15, 2007 05:46 AM
Quakertown, PA
e-PRO, Realtor - Bucks County PA - 610-952-3578
very interesting post.  Thanks
Oct 16, 2007 02:53 AM