If you’ve received a lowball offer on your home, you may be wondering how to respond. While it can be tempting to just accept the offer and move on, there are a few things you should take into consideration first. In this blog post, we’ll share some tips on responding to a low-ball offer on your home so you can make the best decision for your situation.
Don’t panic – it’s common for buyers to lowball their initial offers
Buying a home can bring on an array of emotions and expectations, but one that often catches buyers off-guard is initial low offers. It’s a common negotiation tactic for buyers to start with an offer lower than what they’d ultimately want or expect the selling price to be. Don’t panic if you experience this; the key is to react appropriately to negotiate the best possible purchase price.
Depending on your market and the specific situation, you may be able to make a counteroffer that’s closer to what you had initially hoped, or accept their offer and negotiate certain contingencies. Ultimately, it most certainly is possible to come away with a great deal despite any initial low offers!
Consider the buyer’s motivation
When selling your home, it is important to consider the motivation of the buyer – are they just trying to get a good deal by negotiating your asking price, or do they truly not have the money you are requesting? It can be difficult to tell the difference, but inquiring about their needs and why they want to purchase this item can help gain insights into their intentions.
It is also a good idea to request a copy of their pre-approval letter to make sure the buyer has taken steps to secure financing. It’s important not to jump to any conclusions so that you can ensure the best possible outcome for both parties in the transaction.
Counteroffer with a fair price
Negotiating a fair price can be a tricky process, particularly if you and the customer come to the table with disparate expectations. When responding to an offer, it’s important to evaluate the value of what’s being proposed so that you can make a counteroffer that is fair for both sides. Shoot high enough to give yourself room for further negotiation, but low enough to avoid scaring off your customer. Consulting with a real estate agent during negotiations can prove invaluable. They have access to data to back-up your counteroffer and can help take the pressure off by handling negotiations on your behalf.
Approach it with humility and respect; if you’ve been presented with an offer, there was likely something of great value that sparked your interest in the first place. Bottom line- use data or research to fact-check both positions, then craft and deliver a counteroffer that emphasizes positive reinforcement by appreciatively considering their initial offer while remaining firm on what you want.
If they don’t budge, be firm but polite in sticking to your original asking price
When selling a product, it’s important to remain firm and polite in defending your asking price. The moment someone begins to negotiate for a lower cost is not the time to cave – doing so can lead to negative effects on future transactions. Make sure you consider their offer and explain why the original price is justifiable. You never know if they will come around on the agreement or if there are additional services or products you’re able to provide that could make or break the deal. Being firm but polite throughout the process will demonstrate respect for all parties involved, and may even result in a mutual agreement in the end.
Remember that you can always walk away
Negotiation is an important part of business interactions, and it can be a difficult process. It’s essential to remember that you always have the option of walking away from a deal if it does not meet your needs or expectations. Knowing this can help to put you in a stronger position when negotiating any agreement. You would be wise to take some time to consider all available options before signing anything binding as it could save you from making a bad decision down the road. As long as you remain firm in what you are looking for and keep your finger on the pulse of the negotiations, you should be able to find solutions that work for everyone involved.
Remember, it’s very common for buyers to try and lowball their initial offers so don’t panic. Consider their motivation – are they just trying to get a good deal or do they really not have the money to pay your asking price? Counteroffer with a fair price that meets in the middle of what you’re willing to accept and what they’re offering. If they don’t budge, be firm but polite in sticking to your original asking price. And finally, remember that you can always walk away from the deal if it’s not something that works for you.
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Richard has extensive experience in all aspects of buying and selling residential property. He has sold more than 400 homes and well over $100 million in residential real estate. There’s no need to guess. Get expert advice that will allow you to buy and sell with confidence and ease.
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Expert Assistance:
To reach out to Richard for expert assistance in the Decatur & Atlanta markets, reach out here.
You can also ask Richard for a copy of his contribution to the best-selling book Top Dollar – by completing the form linked here.
