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Just because it is a buyers’ market out there right now does not mean that sellers have to walk away selling for pennies on the dollar, right? Well, no. But it does means that sellers have to be savvy and aware without making costly mistakes that could end up in regret. So what are you supposed to do when you get that lowball offer? Laugh in their face? Nope. Here is some insight as to what you ought to be doing when someone shows some interest in your property.
Reject or Don’t Reject That CRAZY Low Offer?
You have to give it to them. Buyers these days sure know who’s court the ball is in. But that doesn’t mean you as a seller have to quit the game. Let’s face it. As long as the market leans heavily toward buyers as it does these days, you are going to see some very low, and very crazy offers. So what do you do when you get an offer on your home that is as much as 25% lower than your asking price? No, you don’t laugh at them and send them off. Rejecting their offer will only close a door that you might not want to slam shut.
Here’s what you do: you counter offer. What’s the worse that can happen? You could end up at the same spot you were on the day you received the offer and knew that it was too low to accept. OR, you could just end up with a buyer who was playing the field and trying to test the waters to see how low you’d be willing to go. Believe it or not, a lot of times buyers are interested in your house and would pay more if you just asked them. Here’s the real kicker: you will never know until you open that dialogue. So even if you get an offer that is bordering an insult – try them. It could very well end up in a successful sale.
Tale of a Missed Opportunity
Here’s an example of a recent transaction that was salvaged with a bit of intuition, and a little patience:
One of the homes listed recently was shown some interest by a buyer who made an offer that was twelve percent lower than the list price. Negotiations happened; but nothing solid came to the table and the buyers walked away. It wasn’t even a week later when the seller got their second offer; only this time it was almost 25% less than the asking price. After negotiations that went on for a month, the seller was able to settle on a figure that came within 3% of the asking price. Now THAT’s the power of bargaining!
There are two lessons here: First, before rejecting an offer too quickly it might be a good idea to negotiate. And second, no matter how low an offer might be – it definitely pays to negotiate with open dialogue to see where all parties are willing to meet.
Don’t Worry, Be Very Happy You GOT an Offer
One thing to remember is that since there is far more inventory than there are buyers in most markets these days, a lot of times offers don’t even come in for some sellers. So if you do get an offer on your property, be sure to entertain it, no matter how low or insulting it may seem. You never know whether another buyer will be interested in your property or whether this one really wants your property and would be willing to come up to a fair amount.
Until the market changes or shifts toward sellers, buyers are going to try to get as much as they can get in their transactions. Your biggest defense is to counter offer anything that is not acceptable and give them a chance to mull over your offer. You’d be surprised at how many deals are being made on both sides of the fence.
