Tuesday, December 18, 2018 / by Geoffrey Zahler
No one likes to get lowball offers. Locally, as we are seeing homes sit on the market just a little longer than they have been over the last 18 months, low ball offers are starting to become a little more frequent. Here are some ways to handle a lowball offer and push through!
First off, is it REALLY a lowball offer, or is it simply an offer LOWER than your really high listing price? Who set the list price? Was it you or your agent? If your agent suggested a lower price to you originally, how close is this offer to that price?
Consider WHO is making the offer. Do you know who the buyer is? Maybe they were touring the home when you were there, so you know. Was it someone you let into the home? Do you think it’s part of their negotiating, or do you think they are only really interested in STEALING the property for that price?
Has YOUR agent spoken to the other agent? Is there a reason for this price? Does that reason make sense? Perhaps they are stating that they are coming in at this price because the entire house needs new flooring and updated bathrooms and kitchen. Does it? Did you price your home to sell in the condition it’s in, or based on the price of the fully remodeled home next door to you that sold last month? Is there merit to their reasoning, or is it simply their taste?
Here, we ALWAYS suggest to our clients that we at least counter the offer. Even if we are countering very close to our initial terms laid out in the listing price, it is showing good faith to a buyer that you’ve recognized the fact that they put an offer in on the property. If they are serious about the home, and you are serious about selling, the first offer is simply a starting price. If they are simply trying to “steal” your home for a price way below it’s market value, the amount of time you’re taking out of your life is simply not that big a deal. Your agent handles most of the work, and you jump on and electronically sign your name on a counter offer.
I guess the morale of the story is this. Don’t be arrogant or don’t be offended. When we have shifting markets, there are always going to be individuals that are simply trying to take advantage of a situation. They don’t know your need. They don’t know if you NEED to sell ASAP or are simply able to hold on for the right offer. Maybe they are used to negotiations, and are used to starting low, with the expectations that they will be willing to come up to the right price if you’re willing to play the game too.
The other point is this. If your home is priced CORRECTLY, and is exposed CORRECTLY to the masses, the idea of dealing with “lowball offers” is reduced considerably. Homes priced perfectly simply do not have to deal with as many low ball offers. So keep that in mind as you’re listening to your agent tell you what the home is worth. We all think our homes are worth more than they are… it’s simply up to you to decide if you’re willing to sell it at that price, because in the end, that’s about where it’s going to sell!