A seller’s worst nightmare is, of course, not being able to sell his/her home. But also scoring very high on the would-be disaster list is getting a lowball offer. However, a lowball offer can lead to a successful sale if the seller plays their cards right. After all, you are the one who decides whether to accept or reject the bids that come your way.
In other words, the ball is in your court. So take these steps to take a lowball offer into a home run.
First, don’t get insulted
Just because a buyer starts with a low offer doesn’t necessarily mean the person is trying to take advantage of you. They might be moving to the area from a market where lowball offers are a norm, or where home prices are substantially lower than they are in your neighborhood. There’s a natural tendency to get upset when you receive a lowball offer. There’s usually room for negotiation, so don’t reject an offer outright.
Respond gracefully
A little gratitude – even if you’re not exactly thrilled about the size of the offer – can go a long way. It doesn’t do you good at all to let the buyer know that you think their offer isn’t good enough. Responding negatively to an offer can potentially kill the deal for good. It sounds like common sense – but many sellers get caught up in their emotions. Put yourself in the buyer’s shoes : Would you want to raise your offer for a rude seller? So, when you send your counteroffer, cushion your response.
Write a strategic counteroffer
Assuming you priced the home well, don’t feel pressure to drastically slash your asking price. Some people feel so eager to sell their home that their counteroffer is actually too low. It’s fine to give the buyer some ground, but you don’t need to meet them halfway. Offer the buyer a slight price reduction and briefly explain your reasoning. You could provide information on the comparable properties that you used to determine your list price. Another option is to have your agent draw the buyer’s attention to some of your home’s great features.
Except a counteroffer to your counteroffer
Agreeing on a purchase price can feel like a game – you make one move and the buyer makes a countermove. When a buyer comes in with a lowball offer, the buyer and seller might go back and forth for a while before both parties agree on a sales price. Sellers need to remain patient throughout the process.
Negotiate other terms
Having trouble settling on a sales price? There are other ways to sweeten the deal in your favor. Depending on your timeline, you could ask the buyer for an earlier settlement date. If you’ve already purchased your next home, for example, settling in 30 days rather than 45 would reduce the amount of time you’ll need to carry two mortgages simultaneously. You could ask the buyer for fewer contingences. One that would help save you money : Persuade the buyer to make her home inspection contingency an information-only inspection, which basically means that you won’t be asked to make any repairs. Another negotiating point is to get the buyer to increase their earnest money deposit. This would give you greater assurance that the person is serious about purchasing your home.
