After all the hard work it takes to ready a home for sale, it can be so discouraging to find the first offer you get is a lowball offer. Regardless of the market, there are buyers who write offers 10%, 20%, or even 30% below list price. While most of these offers are just “throw-aways,” it’s still possible to turn it into a successful sale. Before you do anything, take a deep breath and stay calm. There are many reasons why a buyer throws out a low offer. It could be they are getting bad advice from a family member or nervous first-time buyers afraid of leaving money on the table. It’s also possible that they are working with a new or poor real estate agent. The one thing you know is that they were interested enough in your home to write an offer, and they expect to negotiate.
The next step is to send a counteroffer. Be respectful and thank them for the offer. If you do have room to negotiate, then offer to reduce your price to a reasonable level. If you have priced the home well to start with, then explain how you arrived at the list price and present any available comps. Remember to look at the other terms offered and consider other ways to demonstrate flexibility and make your property more attractive to potential buyers. For example, offer flexibility in the closing date to accommodate the buyer's timeline. Some buyers may need to move quickly, while others may require more time to secure financing or sell their existing home. Consider including certain personal property items, like appliances, furniture, or outdoor equipment, in the sale of the home. This can sweeten the deal for potential buyers.
A lowball offer may take the wind out of your sails, but it doesn’t mean that there is no opportunity to move forward. Remember that the level of flexibility you can offer may depend on your specific situation and market conditions. Working with your agent, send a reasonable counteroffer back to the buyer and you may find that there is still a successful sale down the road.