A lowball offer on your home can be frustrating and confusing. In many instances, rejecting the offer outright is the smart move. In others, it might be the best offer that the owners can get. If you received a lowball offer on your home and are unsure how to handle it, here is what you need to know.
Why Was the Offer Low?
Your first impulse after receiving a lowball offer is likely to reject it. However, you should take the time to consider why the offer was so low. The reasoning could possibly be used to garner better offers in the future.
There are several reasons that buyers submit remarkably low offers. For instance, a seller might feel that the needed repairs for a home cut into the value of a home. Recommendations from friends and family could also lead a seller to offer a low purchase price.
In some cases, the seller is merely trying to test the waters and see how you will respond to the offer. He or she will use whatever you counter with to determine just how low you are willing to go on the purchase price and will use that information to guide his or her next offer.
Regardless of the reason, you need to develop a strategy for dealing with the lowball offer.
What Can You Do?
Instead of rejecting the offer, you need to talk to the buyer. Ask your real estate agent to find out why the lowball offer was submitted. Remember, your goal is to sell the home and if there is an issue that you could address that would lead to a better offer, you want to know.
Once you know the reason, you can focus on creating a counteroffer. The counteroffer should consider the issue that the buyer had. For instance, if the seller's offer was low due to the repairs needed, you can offer to make some of the repairs before closing or offer a portion of the cost of the repairs if the buyer is willing to increase his or her offer.
If the seller does not have a legitimate reason for offering the lowball offer, you can counter with your full asking price. By doing this, you are letting the seller know that you are serious about your home's listing price and that you are not willing to negotiate for such a low amount.
Rely on a real estate agent, such as Charles Vivash PREC, to help with finding other ways to deal with lowball offers on your home.