How to Handle Lowball Offers
There may be nothing more disappointing in the home selling process than receiving a lowball offer when you had a much higher price in mind. However, a lowball offer does not have to be a deal breaker. It could lead to a continued and more fruitful and fair negotiation.
Here are a few thoughts on the subject:
Keep your eyes on the prize. The name of the game here is selling your home. You may want to stand your ground if you feel you can hold out until a more satisfying offer comes through. If the potential buyer with the lowball bid sees that you are serious about your price, they may be willing to come up a bit or even meet your asking price.
Be strong. The home selling process is an emotional and frustrating one, often for both the buyer and the seller. A negotiation can lead to sensitivity and raw emotions. Remember, ultimately, this is just business. Don’t feel insulted or offended by a lowball offer. Instead, politely reject it if it doesn’t suit you, and reaffirm your asking price (and why you think the property is worth what you are asking).
You’re in control. It’s your property. It’s your call. Don’t feel intimidated or pressured to give in to a lowball offer if you truly don’t think it’s fair. More than likely, there will be a buyer who is willing to see it your way.
Counter-offer. Be ready to counter the offer if you think the lowball offer is unfair. Don’t simply ignore the offer and ghost them. See if they may work with you and your counter offer — they just may be willing to negotiate. Have a counter offer number in mind from the very beginning, so that you are ready to negotiate.
Know your market. Get a hold of your local comparative market analysis (CMA) to show you what similar properties in your market are going for. Remember that the real estate market changes often, so that a price that may have made sense six months or a year ago may no longer be a real-world asking price. Stay on top of the market so you know your real-world asking price.
Ask yourself if the asking price is the most important component of the sale. It often is; however, there may be other considerations that may take the sting out of a lowball offer. These may include the need for you to move quickly, the amount of the down payment the buyer can offer, the type of repairs or upgrades that may be needed, and the contingencies that may be requested in the negotiation.
Bottom line: Ultimately, a lowball offer’s acceptance is dependent on your yes or no, so keep that in mind when you receive one. Take a breath, and consider the ways that a lowball offer can either be sensibly accepted or can lead to more negotiation.