Fielding low-ball offers on your house is not easy. There’s always that niggling doubt at the back of your mind whether you are doing the right thing by refusing the offer or not. Low-ball offers are quite common and it is usually the buyer’s way to start negotiation. They want to see how far you will go in reducing the offer.
There’s a certain way to respond to these low-ball offers because you don’t want the buyer to know how irritated you are with the offer. Whether you are planning to accept or refuse the deal, you must always be cordial. As your real estate agent, I will be the one to negotiate on your behalf. Let’s focus on the important facts and try to keep your emotions in check:
Pay Attention to the Offered Figure
Unless the price quoted is laughable, you need to listen to the buyer carefully and understand the reason behind it. Dismissing it as soon as the words were out of the buyer’s mouth will make you look like an un-interested seller. If the offer is worth accepting, I will guide you on how to negotiate and maybe convince the buyer to up the price by a small margin.
Is This Your First Offer?
If this is your first offer, then you have a little leeway on not accepting it. However, if you receive multiple offers, then you need to re-think on your asking price. I will re-evaluate the property and make sure that you didn’t miss anything or added something that was not worth offering. Certain items can increase the price of the house, which might be frivolous to the buyer but a luxurious gesture on your part.
Here’s how a buyer’s psyche works: They purposely quote a low price because they are afraid they might overdo it. This does not mean that they will up and leave the table. They are waiting for your counteroffer, so that negotiations can begin. By dealing with the buyer’s agent, I will make sure that all your top requirements are met in terms of payment.
Comps are houses, similar in structure to your houses that were sold on your block. I will compare the final offer with the comps and make sure that they don’t fall below the margin. However, you may accept the offer if the amenities in the comps house are not similar to what you are offering.
One of the things buyers want to capture during a low-ball offer is your desperation. Say, you just had a divorce and are in a hurry to get this house off your hand. If you show the slightest bit of receptiveness to the offer, the buyer will latch on to it and refuse to negotiate further. So, it is worth repeating that keep your emotions in check and let me handle the negotiations.
Steve Bhalla is a real estate agent, who helps people in selling their house for top dollar. Visit SteveBhalla.com if you are looking to sell your property with the help of a seasoned real estate agent in the market.