Into every seller’s life a low-ball offer must come!
Buyers have many reasons for low-balling a property including any of the following:
• They may not see the value that you see
• They come from an area where homes comparable to yours cost less
• They may be used to a market where large reductions are common
• They are first-time buyers and everyone told them to start low
• They are trying to gauge how eager you are to sell
Often our first reaction to a low-ball offer is to be insulted and angry and decide to not even grace the offer with a reply. If you follow these three steps you could very well turn a low-ball offer into a success story.
You made the emotional decision to sell your home. You spent endless hours and dollars to prepare your home and then you receive what appears to be an insultingly low offer. Your gut reaction may be to get angry, refuse to counter offer or even discuss. While these reactions are understandable, it is important to remember that while SELLING a home is emotional it is also a business transaction and emotions are best kept in check. Take a deep breath and…
Focus on the Goal
It is important that we focus on where the purchase offer ends and not where it begins. Ultimately the goal is to get the best price for your home as quickly as possible. While a low-ball offer is frustrating it might end up being the beginning of a negotiation that results in you SELLING your home at a good price.
The next step is to work with your Realtor to determine:
- Is the buyer serious?.
- Is the buyer qualified? (does he/she have a pre-approved mortgage?)
- Is the buyer open to a counter offer that reflects the true market value of your home?
- What should the counter offer be to keep the negotiation rolling?
One of the top negotiation strategies when responding to a low-ball offer is countering the offer to your lowest and final price that you’d be willing to accept. This can eliminate lots of back and forth between a buyer and you.They will see that you are taking them seriously and that a sale looks promising. They may even see themselves moving in! They may respond with another lower offer and at this time you inform them it is the bottom line price.
This isn’t an easy process. It takes knowledge and experience to get it right. That’s why working with a good Realtor is essential. Getting a low-ball offer is frustrating but it could be a starting point to a successful negotiation and the sale of your home at a great price!