Don't Be Offended By Lowball Offers

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We recently put our home up for sale. We cleaned from top to bottom, primped, staged until it looked amazing. We felt that in a slower market, we needed to do everything possible to stand out above the competition. Our agent called to set up our first showing, and shaking with anticipation, we cleaned even more. The next day, he said they loved the house and wanted to view it once more. This was too good to be true. I imagined getting close to our asking price from a customer anxious to buy as well as a discount on the realtor's commission because of the short marketing time.

The next day when my agent called his first words were, "I've got an offer, but don't get excited, it's pretty bad". The buyer was asking 25% below our selling price the dreaded lowball offer.

Of course my back went up, and I told him "Tell him if he wants the house, he has to pay full price!" As a symbolic gesture, I decided not to bother with a counter offer. This may have been my gut reaction, but was it the best one?

As long as you have your home up for sale, the possibility of a lowball offer is a reality. Take the element of emotion out of the picture and put yourself in the buyer's place for a moment; wouldn't you want to get the best possible deal? A low offer is not to say they don't like the home. On the contrary, they like it enough to make an offer, but perhaps they're testing the waters to see how motivated the seller is. They may not have been pre-approved and this is all they can afford. If this was the case, the buyer's realtor didn't do their job.

Re-examine your budget and how much you can afford. If you decide that $10,000 less will still allow you to meet your goals and move into your next home, then counter their offer with $5,000 less. In the majority of cases, the market will dictate the sales price, and if your home is priced correctly, you have nothing to worry about. A sharp looking home may catch a buyer who is looking for a home in move in condition, and in those situations, the seller has leverage, even in a down market.

When you submit your counter offer, have your agent tell the buyer's agent that he can't expect to buy an "A" level property at foreclosure prices, and this is your offer unless they want to continue looking for that fixer upper. You may be shocked at the result. If this buyer is serious, now they know where you stand. This time, you may get another counter offer, but a more realistic one this time.

I suppose the moral of this story is, "Don't be offended by lowball offers they're really compliments in disguise".

About the Author:
Work with a qualified, dedicated agent for your next Lakelands MD real estate purchase. Justin Lee will help you find the perfect home in Washington D.C.



Article Originally Published On: http://www.articlesnatch.com


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