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Fielding a Lowball Offer on Your Home

Consider before you ignore or outright refuse a very low purchase offer for your home.  A counteroffer and negotiation could turn that low purchase offer into a sale.

Check your emotions
CA purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counteroffer or an outright rejection. Remain calm and discuss with us the many ways you can respond to a lowball purchase offer.

Counter the purchase offer
Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.

A counteroffer signals that you are willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

Consider the terms
Price is paramount for most buyers and sellers, but its’ not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.

Review your comps
Ask us whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

Consider the buyer’s comps
Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be realistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.

Written by: Marcie Gefner/ Published 06/10/10

If you are ready to get your home on the market call us today!  We’re ready to help you!

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Categories: Sellers
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