No matter how beautiful your home is, where it's located, or how well you position it on the market, there is going to be someone out there who tries to buy it for something far below the market rate. Fielding low-ball offers can be frustrating at first, but it's also simply part of the process when you put your home on the market. The good news is that with a little finesse, you can turn a low-ball offer to your advantage, and the person who made the low offer may even be the one who buys your home. Our REALTORS® are here to help, with tips on how to field a low-ball offer for your home.
From Low-Ball to Home Run: Negotiating the Offer Process
Selling a house requires real effort, so it's understandably frustrating when one of the first offers you receive is for something far below your asking price. In that moment, it's good to remember that a low opening offer is a very common negotiating strategy and simply part of the process when you're selling something of value. The next step is what makes all the difference.
- Take a Breath
Your first instinct may be to ignore a low-ball offer entirely, or reject it without taking much time to speak with the person who made the offer. But what if the person who made the offer is simply trying to find a home they love for the best possible price, and is willing to meet you closer to your asking price after some negotiation? Unless the offer is just ridiculously low, it's a good idea to take a breath, gather your thoughts, and say “no thanks” in a cordial way to leave open the possibility of future negotiations with that buyer.
- Speak with Your Agent
Your real estate agent has no doubt seen their share of low-ball offers, and should be one of your best sources of advice with how to proceed on any offer when selling a house, low-ball included. An experienced agent can help you come up with the best response for a given offer, and help you market your home to increase the number of viable bidders.
- Come Up with a Counter Offer
Selling (or buying) a house is a process of negotiation, and a low-ball offer is often an invitation to the seller to counter with a better price. Coming back with a counter offer shows the buyer that you're willing to negotiate, and the buyer's response will tell you whether they are a serious suitor worth engaging further. If you're not willing to lower your asking price, consider adding some buyer-friendly terms to show that you're willing to deal.
- Consider the Context
Not all low-ball offers are created equal, and an offer lower than your asking price may include other perks that help make up for the financial shortfall. Context matters and it's especially relevant when you need to sell your current home quickly in order to make a move of your own. In that case, an offer with a quick closing date from a pre-approved buyer may be enough incentive to lower your asking price when you make your counter offer.
It is very difficult to avoid low-ball offers when selling a house and it's good to remember that the person who made that low offer may actually be the one who winds up buying the home on terms more favorable to you. Contact RE/MAX DFW Associates for help buying, selling, and fielding offers on homes in the Dallas-Fort Worth Metroplex.