How To Respond To A Low Offer On Your Home

By
Commercial Real Estate Agent with Access Capital
http://actvra.in/hpn

Consider before you ignore a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale. When you receive a low offer on your house, the best response is to counter with a price you're willing to accept.

You just received a purchase offer from someone who wants to buy your home. You’re excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counteroffer that keeps the buyers involved in the deal.

 

Check your emotions

A low purchase offer still means someone wants to purchase your home. Unless the offer is rediculously low, it deserves a response. Remain calm and discuss with your Realtor the many ways you can respond to a low purchase offer.

Counter the purchase offer

Unless you have multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.

A counteroffer signals that you’re willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

Consider the terms

Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.

Review your comps

Ask your REALTOR® whether any homes that are comparable to yours have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

Consider the buyer’s comps

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.

If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.

Get the Realtors together

If the purchase offer is too low ask your Realtor to call the buyer’s agent and try to narrow the price gap so that a counteroffer would make sense.

Posted by

All The Best,

Herb Johnson

859-372-8019 Direct Line

Herb@HerbJohnson.com  Email

www.HerbJohnson.com      Website

Buyers and Sellers wanted. Referrals Appreciated!

4895 Houston Road

Florence, Kentucky  41042

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Re-Bloggged 6 times:

Re-Blogged By Re-Blogged At
  1. Stacey Matsuda 08/22/2011 08:20 AM
  2. Lori Stenbeck 08/22/2011 10:24 AM
  3. Erica Ramus 08/24/2011 11:42 PM
  4. Daniel H. Fisher 09/08/2011 11:18 PM
  5. Barbara Martino-Sliva 01/28/2012 10:33 PM
  6. Gabe Sanders 01/30/2012 06:29 AM
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Rainer
168,750
Herb Johnson
Access Capital

@Susan: We are in agreement, there is very little downside to a response.

@Jon & Gabe: I'm not suggesting time be wasted on people who are low balling. Yet in the current environment my belief engaging a buyer is in the best interest of my clients. I've had several offers that were close to only 75% of the list price, yet after nogtiations closed for more than 90%.

@Ellie: Feel free to use any of the content you wish for your clients.

 

January 29, 2012 01:31 PM
Rainmaker
612,517
Bob Miller
The Ruiz/Miller Team - Ocala's Dream Team
Keller Williams Cornerstone Realty

Hi Herb, great post and congratulations on your top ten.  Great suggestions especially since I have received two insulting offers this month.

January 29, 2012 08:18 PM
Rainer
168,750
Herb Johnson
Access Capital

@ Bob:

Thank you for the kind words and don't take those offers personally!!

All the best,

Herb

January 29, 2012 09:23 PM
Rainer
341,736
Bill Reddington
Destin Florida Real Estate
Re/max Southern Realty

I agree the best thing to do is counter at a price you are willing to accept. The job is to keep sellers from being insulted and counter.

February 02, 2012 05:32 PM
Rainer
168,750
Herb Johnson
Access Capital

Bill:

Thank you for your comment, you are absolutely right in my opinion.

All the best,

Herb

February 03, 2012 07:49 AM
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