Whenever I receive a low ball offer I have to hold back my gut reaction of wanting to call the buyer’s agent and say “Is your buyer CRAZY? How could they offer so little for such a great real estate property?”
I know that getting upset with the buyer’s agent is not going to get my seller’s house sold. So instead I calmly call the buyer’s agent and seek first to understand. As I am hopeful that the reason I received a low ball offer is because of a misunderstanding of the comps, the Spring Texas real estate market, or the cost of upgrades that need to be made to the home.
Usually the response I receive has nothing to do with the true value of my seller’s Spring TX home. But some other reason that makes sense in the buyer’s mind that the home is worth significantly less than the list price. It could be because the buyer has overestimated the cost of updating the home, the buyer may not be able to qualify for a higher loan amount, the buyer may think that the seller should take less for the home if it has been on the market for a while, or simply the buyer wants to get the best deal possible. There are probably as many reasons why a buyer thinks a seller should take a low offer as there are days in the year.
As a seller, you need to remember that an offer is an offer no matter how low. The biggest mistake you can make is to flat out reject the offer. Sometimes the buyer just wants to see how aggressive you are willing to negotiate.
Based upon the buyer’s rationale for his low ball offer, determine your negotiating strategy and provide the buyer with a counter offer. Don’t let your emotions get in the way and become insulted. Give the buyer a counter offer and let the negotiations go where they may. Sometimes the buyer will come to his senses, realize that you are not going to give your house away, and counter back with a more realistic sales price.
We entrusted Jill Wente with the sale of our current home and purchase of a new home. From the beginning... read moreWe entrusted Jill Wente with the sale of our current home and purchase of a new home. From the beginning she was extremely up front and honest about exactly what we would need to do to get our house sold. We had an incredibly tight timeline, that she explained would be difficult to make - but she helped us make it happen and our house was under contract in 2 days! She had recommendations for all our home repair needs and they were all professional and fairly priced. She worked hard to really sell our offer for our new home - she was able to pull off the tight timeline, securing a rent back from our old house so we had time to move out, and a contingency for our new home. Definitely exceeded our expectations. She was so helpful along the way - as first time home sellers we really relied on her and we feel lucky to have worked with her! You will not regret working with Jill! read less