Home sellers: How to handle a disappointing offer
Category News
Selling your home is stressful enough without being presented with an offer to purchase that is way below your asking price, but it's important to stay calm and consider your response.
You also need to remember that estate agents are obliged in terms of the code of conduct to present all offers made, no matter how low, so it isn't fair to be angry with your agent when this happens.
It also may not be the best move to immediately reject the offer. Try doing the following instead before you make any hasty decisions:
*Analyse the offer. Take the offer seriously and review it thoroughly to understand the terms and conditions, including the proposed closing date, any contingencies and the financing terms, as well as the price being offered. The buyer might be offering to pay cash, for example, and hoping for a substantial "discount" in return for a quick deal.
*View things from the buyers' perspective. Try to understand why they made a lowball offer. They may be trying to negotiate aggressively, or they might genuinely believe your home is overpriced. Or they may really like your home but realise they can't afford it at your asking price. Understanding their motivations can guide your response.
*Assess market conditions. Consider the current state of the real estate market in your area - and whether it has changed since you listed your home. If it's a seller's market with high demand and low inventory, you will have more leverage to reject a low offer. On the other hand, in a buyer's market with excess inventory, you might need to be more flexible - although it might still not be a fair offer.
*Talk to your agent. Rely on their professional expertise and confirm that your asking price is in line with current market conditions in your area. Take their advice with regard to negotiations.
*Make a counter-offer. Instead of just dismissing the low offer, consider making a counter-offer that is reasonable and a better reflection of your home's value. At the very least, this will demonstrate your willingness to negotiate. But if the prospective buyer then refuses to budge, you should be ready to walk away. It's important to know your bottom line and be willing to wait for more appropriate offers.
*Don't get discouraged. Continue to work with your agent on marketing your home and actively seeking other prospective buyers who will make offers that are closer to your asking price. Being patient and strategic as well as flexible is often the key to a successful sale that satisfies both seller and buyer.
Author: Chas Everitt