When your house is for sale, almost nothing is more disheartening than when you get a lowball offer. It might take the wind out of your sails or it might simply leave you breathless. Before you let your anger get the best of you and decline the offer, consider some other ways to deal with it. You might just be able to turn a lowball offer into a sale.
Remove Emotions from the Equation
Selling your home can be an emotional time. The key to a successful sale is to remove the emotion from the equation. You have to look at each individual offer from a financial standpoint instead. If you allow your emotions to get the best of you then you might say or do something that causes you to lose the deal altogether.
Evaluate the Comps
In a volatile real estate market, home values can change on a daily basis. When you receive an offer, no matter how low it seems, review the recent sales of homes in your area. It is likely the buyers and their real estate agent are looking at the same comps, which is where their offer figure originates.
Make a Counteroffer
After reviewing the offer and reviewing the comps, go back to the buyer with a counteroffer. You might want to meet the buyer in the middle. If they go low and you go high, then there is wiggle room to negotiate. Use the recent sales prices for homes that are similar to your home in your area. A counteroffer might be all it takes to salvage the deal.
[Mortgage Help: Get your free credit report and see if your credit score is mortgage qualified]Evaluate the Terms and Conditions
A buyer’s offer is not just about the price. The offer has a lot of terms and conditions attached to the price as well. Be sure to evaluate these terms and conditions to ensure they meet your standards as well. For example, if the price is low but the buyer is covering all of their own costs, then it might be beneficial to accept this offer over a buyer that is asking you to pay some closing costs. The closing date and other contingencies are considerations you should evaluate as well.
Get the Real Estate Agents to Talk it Out
Have your real estate agent talk to the buyer’s real estate agent. Allowing the two professionals to talk it out might help you and the buyer to narrow the gap between your asking price and their offer price. Your agent can see what the sentiments of the buyer are so that you can get a better idea of what point you might be able to have an agreement.
Part of selling your home is an emotional decision. In reality, however, you must look at it from a financial point of view. When you consider one or more of these five steps to deal with a low offer from a buyer, you might just be able to salvage the deal.