30 Aug How to Handle a Lowball Offer
Most sellers are a little nervous with anticipation when their home is sitting on the market. What are buyers thinking? Is someone interested? Will an offer be coming in? Then out of the blue, a buyer’s agent comes calling with a low ball offer. Less than flattering valuations of your property are hard to take, but that doesn’t mean you should feel insulted. Slamming the door is the wrong reaction. As an experienced Real Estate Agent, here are three important things that I keep in mind when I am at the negotiating table:
1. Thank the potential buyers for their interest. Although some buyers are truly just “testing the market” looking for a desperate seller, they are few and far between. If someone takes the time to view your home multiple times and asks their agent to write up the offer, they are probably more interested than they seem. Keep your ego in check, and consider where you can lead the negotiations next.
2. Use real data justify the value of the home. In real estate, home values come down to what the market is willing to pay. When an interested party brings in a low offer, it’s important to point out the information that was used to determine the original asking price. How much are similar homes selling for in the neighbourhood? How much demand is there? What makes this home different from the others? Are there any costly upgrades that warrant a higher sale price?
3. Decide if there are any positive elements on the offer. Sometimes, a great offer comes down to more than just the number. If the buyers are willing waive conditions early, or they are prepared to offer a flexible closing date, it may be worth entertaining the offer. Remember, a better offer may come in, but if it is loaded with conditions, you may be better off working with what is already on the table.
If you feel your home is worth more, and the market data supports your opinion, stick to your guns. There is no need to feel pressured to sign a deal you aren’t comfortable with. That’s exactly why working with an experienced Real Estate Agent can remove the stress of negotiating in a challenging market.