By: Tracy Phelan
HOW TO POLITELY AND PROFESSIONALLY DEAL WITH LOW-BALL OFFERS
Tags: Homes in St Catharines, Tracy Phelan RE/MAX, Just Listed, Just Sold, Niagara Real Estate Market, homes for sale, Niagara Realtor, Neighbourhoods in Niagara,house prices, new listing
April 23, 2020
Getting a low-ball offer when trying to sell your home happens. What’s considered a low-ball offer, you ask? Typically, it’s an offer that comes in at 25 percent or more lower than your asking price. While you may be offended by such an offer and tempted to ignore it, dealing with it politely and professionally is a better idea as it could mean selling your home that much faster.
If you’re selling your home, you can expect to have to deal with a low-ball offer or two, so here’s how to do it.
DON’T IGNORE A LOW-BALL OFFER
Even if you know right off the bat that an offer is ridiculous, it’s best to discuss it with your agent first before shutting it down. Your agent may have some insight into why the offer came in so low. For example, the buyer may have gotten bad advice from well-meaning friends or family as to what to offer on your home.
Whatever the reason for the less-than-ideal offer, give the buyer the benefit of the doubt and try to negotiate a better deal. While you may have gotten off on the wrong foot, things could change, and you could end up selling your house to the very same person who tried to low-ball you.
DON’T WORRY ABOUT HOW YOU LOOK TO POTENTIAL BUYERS
When trying to get top dollar for your home, you mustn’t worry about how you appear to potential buyers. Does it look desperate if I don’t make a counteroffer? Do I seem like a jerk if I don’t budge on the asking price?
You have your reasons for the asking price you set, just like the buyer has his reasons for the offer he makes. Finding out what those reasons are may give you a different perspective on your own home, giving you the ability to consider a lower-than-expected bid. Negotiate with a level head and don’t worry what people think of you to get the best deal possible when selling your home.
MAKING A COUNTEROFFER
When making a counteroffer, it’s wise to back it up with real data from similar home listings and sales in your area. With this type of information, you will have a better idea where offers should fall with a low-end and high-end price.
Ask your agent to help you find out the number of similar homes on the market, how many of those homes sold and closed since you put your house on the market, how many of the listings expired without selling, the number of homes that are pending sale, and the number of new similar listings with data sheets and pricing.
Low-ball offers are to be expected when selling your home. How you deal with them, though, will determine how successful you are at selling your home quickly. Don’t be quick to ignore an offer like this as negotiating it could lead to an offer you just can’t refuse.