The Tough Stuff Series: Lowballin’ Offers

"It is a buyer's market!"...."There are great deals out there!"...."Now is the time to buy!"  We've said it and you've heard it lots over the last year or two!  Well, the good part for buyers is that it's true....but that's also the bad part for sellers.
Sellers are facing more and more lowball offers.  Before they ignore it or outright refuse a very low purchase offer, they should think about a few things!  This brings us to our challenge #3 in the Tough Stuff Series! (every time I write that I think of Mr. T for some reason, haha) 

The Challenge – In this real estate market, there are lots of listings and not a lot of buyers.  Ever heard of supply and demand?  Believe it or not, that applies to homes too!  Buyer are also become more strategic, with the help of their agent.  Looking at how long your house has been on the market, when the seller purchased it and whether or not it is vacant is common practice in determining what kind of offer to put in.  Buyers want to feel like they are getting a deal and are scared that they will overpay.  Some buyers also think it is customary to start low so that you can end up somewhere in the middle, kind of like a car purchase! 

The Solution – Remain calm…as hard as it may seem, this is not a personal attack on you. Discuss with your agent the many ways you can respond.  Don’t just consider the price…you must also look at the other terms such as seller concessions, contingencies, closing date, preapproval letter, are they taking it “as-is”?, etc. 

One option is to counter back at a higher price, but agree to the other terms, like offering to pay closing cost for the buyer.  Because while buyers can get a loan for their purchase price, they have to come out of pocket for the closing costs. Or you could leave the price and offer no closing cost assistance and ask the buyers to take the home “as-is” so that you don’t get stuck doing a lot of repairs from the home inspection.  

Another solution is to review comparable homes in the neighborhood.  Has the market changed since you put your house up for sale?  Are the new comparable homes now supporting the lower price?  We can help you determine all of those things by pulling data from your neighborhood.

Finally, remember that it is important to consider every offer!  Even if your houses has only been on the market for 30 days, this may be the only offer you’re going to get in another 60 days, so be sure that you give it every consideration. 
The market will slowly but surely even itself out and when it does, most of the lowball offers will slow down.  Until then, call The Shannon Edwards Team.  As long as your realistic about the market, then we can help you negotiate to a place where you and the buyers are both comfortable!