Fielding A Lowball Purchase Offer On Your Home
4 Tips For Handling A Low Offer
So, you’ve gotten an offer on your home – just what every person selling their property dreams will happen! But the offer is low, way too low. Don’t worry, lowball offers happen all the time, and if you keep the following four tips in mind, you can overcome the initial frustration a lowball offer creates. Keep in mind, the goal is to negotiate a price and terms that work for you… and that the buyer will agree to. You can always just say no, but these tips will help you and the buyer get to YES!
Don’t Let Your Emotions Get In The Way
After all, this isn’t personal, it’s business. It doesn’t matter if the offer is low and the terms are ridiculous and the closing date is too far away. An offer means someone wants to buy your home. Everything is negotiable, so don’t feel insulted or sad or panicked. It can be tough, but remember to remain calm and move forward. This is where having an experienced real estate agent is most beneficial.
Your agent isn't emotionally attached to the home like you are, so they're in a much better position to approach negotiations with a level head. If necessary, take some time to let your emotions settle before responding to the offer. Once you've had some time to cool down and think about it, the offer may not seem as bad as it did initially.
Consider All The Terms Of The Offer
Though price is the number one element both buyers and sellers look at, the other terms of the offer deserve to be given just as much consideration. You might want to accept a lower offer if the closing date is within your time frame, the buyer is pre-approved for financing or paying in cash, and the contingencies make sense.
Find out what is most important to the buyer and come up with creative ways to negotiate around that. If done correctly, you may be able to net a higher price while conceding on the terms that aren't as important to you.
Look At All The Comparable Sales
If there have been other homes sold in your area that are similar to yours, check their sale prices. If it's been a while since you last evaluated comparable sales and local market trends, it's probably time to get an updated value estimate for your home. You may need to accept a lower offer if your home is overpriced and doesn’t match what others have recently sold for.
Likewise, check the comps that the buyer is using. They might have a good reason to offer such a low price, or, they may be comparing your home to far inferior properties. The more information you have, the better your chances of improving your negotiating position.
Send A Counteroffer
After receiving a lowball offer, the best thing to do is counter the offer with more acceptable pricing and terms. There are numerous reasons a potential buyer might have lowballed; it’s up to you to negotiate and be open to finding a price that works for the both of you. There's no limit to how many times each party can counter the other's offer, so go until you've come to an agreement or until you've reached a stalemate and someone is ready to move on.
Selling a home is an emotional process. But if you can set aside your feelings and focus on the sale as a business transaction, then you’re much more likely to come out happy and successful.