You got an offer on your house…. WHAT WERE THEY THINKING?
How to deal with a LOWBALL offer when selling your home.
As a listing specialist I see this every day. Prospective buyers make an offer that is way off base. Maybe it’s significantly low in price, or it asks for tons of concessions. Maybe it’s both!
We call these “HGTV Offers”. People watch these so called (scripted!) “reality shows” and see others purchasing homes at extremely discounted prices. In “real reality”, homes in Central Oklahoma are selling for about 97% of listed price.
So, what do you do when you get an “HGTV Offer”?
- Take a deep breath and put your emotions aside. Don’t be upset with the prospective buyer for writing a low offer- be upset with the other buyers who viewed your house and never made an offer! While it is hard not to be emotional about your own home, remember THIS IS A BUSINESS TRANSACTION.
- Always make a Counter Offer! A counter offers shows that you are willing to negotiate. Find out what is more important to the perspective buyer (purchase price or concessions) and counter accordingly. NEVER simply reject an offer, or let them expire. I’ve seen offers that were wildly low end up getting negotiated. Who can blame a buyer for asking for a great buy? Usually they know they aren’t going to be able to purchase your home at the price they offered.
- Think about the cost of not accepting an offer. It takes about 45 days to close on a sale after you go under contract. How much will it cost you to stay in your home if you continue to market it for another month or two? Could you be more aggressive with your counter offer if you knew you would be out of your house in 45 days?
- Don’t be desperate! Don’t signal your position. Never list your property as a “Motivated seller”, or “Bring all offers”. This type of language invites low offers. Finally, remember that no matter how hard you try, sometimes buyers and sellers just can’t get together. You’ll be better prepared for the next offer!
Author: Terry Erhardt, Realtor @ Erhardt Group at Keller Williams Mulinix Realty