When trying to sell your home, it can be disheartening when a buyer offers you a price way below asking. At such a stressful time, it can become emotional, especially when selling a home you have loved and cherished for a long time.
If you handle low ball offers professionally, the situation could work out in your favour. Working with a professional and experienced REALTOR® to sort through how you’re going to respond to such a low offer can help you to feel calmer and more supported through this process.
There are many reasons why buyers may put in a much lower offer on your house, and there are ways to turn the situation around.
What Is A Low Ball Offer?
Low ball offers are generally agreed to be 10% and more below your asking price. However, any offer that is lower than your asking price can be referred to as such. After all, you set an asking price for a reason!
Why Did I Get A Low Ball Offer?
There are many reasons you may have gotten a low ball offer. We have summarized a few of these common reasons below.
Low ball offers frequently come out of nowhere and can be the work of an agent with little experience. This lack of industry knowledge may lead agents and their buyers to choose a random figure to see the different offers they can get if they ask for it.
They See The Property Differently Compared To The Way You See It
Sometimes, it’s just a matter of perspective. While you might think your brand new, state-of-the-art kitchen is stylish and sleek, a buyer may wish to remove it and change the layout. Buyers are seeing the property through their own eyes and considering the ways they would like to change things.
When they put in the offer, they may already be considering large-scale renovations that will be an added cost on top of the home purchase, which is why they have tried to shave a bit off the asking price.
They May Have Come From A Different Market Location
Different locations have different housing markets meaning what is worth a lot in one area may not be worth as much in another. Your buyer may have seen homes like the one you’re selling for much cheaper in another location and may wonder why the prices are so different.
The Buyer Has A Budget
Sometimes it’s not about your home, but it’s about the money that the buyer can afford. It may just be that a buyer is seeing whether they can go as low as they need in order to get the home they love.
Refrain From Getting Emotional
You may feel insulted when you first get a low ball offer. You may wonder why someone doesn’t think your home is worth as much as you do and feel angered by this. However, it is important to consider the wide range of external factors. Instead of becoming angry, channel your emotion into making the deal work for you.
Drafting Up A Counteroffer
REALTOR® are adept at negotiating, so you will need to spend some time working out what is important to you and what is important to the buyers. Once you have this knowledge, your REALTOR® can enter into negotiations to get the best possible deal for both parties.
The negotiation process may go back and forth a bit as each party seeks to get the best offer for themselves, so be prepared!
Discuss New Or Adjusted Terms
Discussing new or adjusted terms is where you obtained the desired conditions from the negotiations and once they have been settled, the selling process can resume. Make sure that you are as happy as you can be with the terms and don’t feel you have to settle for them.
Looking For An Experienced Listing Agent in The Niagara Region? Call Davids & DeLaat!
If you’re looking at selling or buying a home in the Niagara Region and are looking for a supportive and experienced REALTOR®, look no further than Davids & DeLaat! Get in contact with us today!