As a seller, the last thing you want is to feel like your expectations aren’t being met when it comes to home price. Especially when you know you’ve priced it fairly! But inevitably, almost every seller will receive a low ball offer at some point. The trick is knowing how to deal with it.
Here are a few tips we have for responding to a low ball offer.
Don’t get angry.
In fact, expect low ball offers. There is a fine line between wanting a good deal and being a serious buyer; and some don’t walk that tightrope very well. Don’t get angry with the buyer, because this won’t help anyone’s case. Instead, try to be understanding, and go into it a little firmer next time. You don’t know the reasoning behind their offer until you talk to them (and trust us, there are a variety of reasons why these offers happen). If you react negatively, you might turn the buyer away. Think of it like a fight in a relationship; acting out and responding quickly out of emotion will only deter the fight, not improve it.
Understand why they’re low balling you.
Before you go making assumptions or accusations, it’s important to think about why someone might be low balling you. Understanding these different perspectives could provide some insight, and help you decide how to best move forward. Here are a few reasons a low ball offer might take place:
- A low ball offer might indicate that the buyer or their agent isn’t serious.
- There are specific things you might care about or value, but the buyer might not. For example, a pool might add a ton of added value for you, where it may not for someone else.
- The buyer might be unfamiliar with the market, and don’t have an agent helping them to determine what’s in market value. Or, maybe they come from another market where a home similar to yours actually is worth considerably less. They’re just going off of previous experience, and it’s hard to fault someone for that.
- A low ball offer might mean the buyer is testing you. In many cases, the buyer is very knowledgeable on market value, and what your home is worth. But they want to see how much you know. It’s a way of taking advantage of knowledge, and unfortunately in a lot of instances…it works.
- The buyer might be reaching their max budget. If they think they bit off more than they can chew, they might try to low-ball you to see if they still have a shot.
- A low ball offer will probably happen if you are overpriced. This is why it’s critical to know exactly how much your home is worth before putting it on the market. We often see sellers repeatedly deny buyers, thinking it’s the buyers fault. If you’re noticing a pattern (and this goes on for quite some time), circle back on your home’s value and reevaluate.
Know your next move.
Essentially, a seller has four options when they get a low ball offer.
Ignoring and rejecting are essentially the same; although it would be nice to politely inform the buyer that you are declining.
If you don’t want to accept a low ball after, even after running a market analysis, you can consider countering it. You never know, the buyer could take the bait! Like we said, sometimes they’re just testing you, expecting that you’ll probably counter. This will let the buyer know that you’re still interested as long as they improve their offer.
If you’re ok with the offer, accept it!
Want to avoid low ball offers all together? Home Buyers Express can help! At Home Buyers Express, our mission is to give homeowners like you a smooth home selling experience. We aren’t listing your house and waiting for a buyer, we are the buyer, and we pay cash. And we won’t low ball you! With over twenty years of experience, we know how to streamline the process. Visit our “how it works” page for more info, and contact us today.