Low Ball Offers and How to Handle Them

Many homeowners become frustrated that their homes are still sitting on the market month after month.  Many have even dropped their asking price already and they're waiting for buyers to snatch up their new low priced property.  However, reality sets in when you have buyers appear that offer them 10% less than what they've already lowered the original asking price.  So now what is a seller to do?

Okay, this may anger or panic some, but let's not go there.  And, let's not reject the offer right off either.  Buyers making an offer are usually serious or they don't usually make an offer to begin with.  This is a starting point.  Keep in mind that the buyer and his agent have been looking at homes and conducted a property value study of the seller's home before they even came to the seller with an offer. 

So, now it's time for the seller to analyze their goals and their needs.  Ask yourself how much you need to come out of this deal on top?  Will you be able to use this money to move into your next home?  What is the absolute lowest you are willing to take?  And what will your counter offer be?

Now the game of negotiation begins.  You can keep the game alive for as long as the buyer is willing to, giving a little at a time.  Your professional real estate agent will know how to play this game best. However, so will the buyer's agent.  So, beware of that as well.

Let's talk numbers.  If you reduced your home to $234,000, expecting an offer of $229,000 with you paying the $10,000 closing costs, let's start here.  Since you were already willing to take a net of $219,000, you're not that far off.  Come down on your asking price to $230,000 and now only pay $5,000 in closing costs.  Your net has now come up to $225,000.  Or, you can decide to pay $10,000 in closing and you'll still be up with $220,000.  You see?  You're ahead of the game if they accept.

When counter offering low-ball offers or any offer in general, give lots of complements about their offer.  Thank them for the great offer, thank them for writing and let them know you are excited about selling your home to them.  Everyone likes a nice complement.

If, by chance, they counter offer, let them know you want this sale to go through as much as they do.  However, let them know that you have goals that you need to meet like they do and that you hope everyone can find a happy medium.  Then, let them know this is your last offer.

Also, remember that patience is key.  Try not to get upset during the process, but work together to get what you want.  We hope this helps your selling process go a little more smoothly.

Realtors Mary & Bill Watkins  ~  Jackson Mississippi Real Estate

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