Low Ball Offers

What To Do With Low Ball Offers???

Easier said than done...try your best not to be insulted by the offer.

I know it’s difficult!!!  Think how I feel!  The State requires me to submit all offers.  But in reality, buyers listen to so many so called experts from radio talk show economists to friends and neighbors, national news reports to family members with good intent. Their markets may be completely opposite of your local market.  And of course, there's the Buyer who feels that any Seller may be desperate and thankful for their offer.  And, on a rare occasion their Agent has not provided reasonable comps to consider prior to making an offer.  Shame on their Agent!  In any event, your first step is to acknowledge their offer. 

What's Next?  It's Simple - You Have 3 Options:

• Reject The Offer Completely;
• Accept The Offer; or
• Counter The Offer With Your Own Price and/or Terms. 

Accept It.  If the offer is truly a low-ball, accepting the offer is not a preferred choice.  In the case of a short sale, if the offer is too low it, accepting it may stall proceedings but it's the Short Sale Lender that has the last say. 

Reject It.   By rejecting the offer, you've indicated to the Buyer that their offer is not acceptable.  Some Buyers are informed but refuse to listen to their Agents.  Occasionally we see buyers who submit offers that read like, "lets throw it against the wall and see what sticks."  Your response tells the Buyer that their offer will not go through to contract.  If the buyer has a genuine interest in your home, they’ll learn two things very quickly:  1) If they’re attached to this home but can’t afford the price tag, no matter what the market value, they’ll need to move on; and 2) if they’re able to qualify for the list price, but don’t want to pay it, they’ll understand loud and clear that you're not meeting their demands.  On occasion, some low-ball buyers have come back to the table with second offers, once they realize that the home meets their criteria and their offer was not in line with market conditions.

Counter It.  There may be the possibility of meeting in the middle -- the buyer comes up some and your go down some.  You won't know unless you try by submitting a counter offer. If you’ve been on the market for awhile and have had no offers, this may be an indicator of your market conditions or that your property is not priced right.  I would have to say that it's practical to at least consider a counter offier.  What do you have to lose for trying?  If your counter is not accepted, then you're no worse off than you were before.