On today’s market, every seller wants to have multiple offers so that they can have a bidding war, and we all know bidding wars often lead to the higher sales price.
However, that dream scenario isn’t always the outcome, sometimes buyers make a low ball offer. Your mind is set on a specific sales price that you think is reasonable and you expect to get an offer for your home for least that much.
Now, you may feel like you want to reject the offer and move on, but the fact that you’ve got someone who wants to purchase the home is a positive thing.
Instead of outright rejecting it, you could try to negotiate in the end it might turn out to be a perfect sale.
Assess the situation and determine whether the offer is a realistic option or not. There are a number of reasons why you’re getting a low offer. If you react negatively, you might scare away a buyer that may be serious about buying your home.
Here are common reasons why buyers make low offers.
They Think The House is Overpriced
In most cases, buyers have been studying the area they’d like to purchase a home.
While they may have seen houses enter and exit the market they may not be making an apples to apples comparison.
Perhaps, they don’t have any idea about the real estate market. They may be comparing your home to another in your community of a different size or without as many updates.
They could come from a different market where houses like yours worthless.
Keep it in mind that sometimes what you think about your house is different from other’s perspective.
They Want to Get a Deal
When you’re buying a home, it’s no surprise that you want to get the best deal possible, and that’s no different for your buyers. They don’t want to pay too much, so they’re offering lower than the asking price.
It is the reason why you may choose to counter their offer. They want to test you, hoping to lower your asking price.
However, once you’ve made it clear that you aren’t willing to accept a low offer you may be able to come to terms on a deal that satisfies all parties.
They Offer What They Can Afford to Pay
Sometimes, buyers’ eyes are bigger than their wallets. They tend to notice your home even though it is listed for more than their budget. They’ll try making an offer, in the hopes that you might accept an offer at the price that fits their budget. If not, they will likely move on.
In this instance, they probably aren’t the right buyers.
The prequalification letter that is presented to a lender, more often than not, will show them the exact offer price or a price closer to it. Buyers are known to receive new letters specific for each offer, even when they can afford more. This is a bargaining tactic to close a deal favorable to them. The “This is all we can afford” spiel is outdated, don’t let this cloud your judgment.
In times that this is true, it probably means that they are not the right buyer for you.
The thing about selling a property is that you are in control. You don’t have to accept offers that don’t fit your standards or needs. Keep it in mind that you don’t have to say yes if you don’t want to.
When you’re confident that your asking price is right, this is when you want to have an offer close to it. Putting a little bit of a cushion between your listing price can equate to a profit that is satisfactory.
Thinking of selling your home? Check out our 20+ step Guide to Selling Your House. Or you can contact me now to start the process immediately. Same day appointments are available on a case by case basis. I look forward to hearing from you.
About the Author
The above article was written by Abraham Walker, Your Northern Virginia Real Estate Agent, helping clients market their homes to achieve high sales with a quick closing time is my main priority. He’s the co-founder of Ask A Walker and can be found on YouTube, Facebook, and HERE on this blog.