When you put your house on the market - the one you’ve lived in for so long - it can be insulting to see a low-ball offer come in. You want buyers to appreciate your house like you do and value it the same way. But sometimes the insult can get in the way of making a great deal. Here are 5 questions to ask before automatically rejecting a low-ball offer.
#1 - Is it too low, or just lower than you expected?
A low-ball offer is usually defined as 20-25% below your asking price. In areas where there’s a shortage of homes for sale, offers 20% or below may be too low. But there’s no rule of thumb when it comes to offers. Price ranges vary from market to market and submarket to submarket. So make sure you ask your Realtor beforehand how low is too low and trust their advice on the decision to reject or negotiate an offer.
#2 - Is negotiating better than rejecting?
Even though it may be offensive to receive a low offer, it’s wise to deal with most offers, unless they’re significantly lower than 25% of your asking price. Plus, most buyers ask lower than they’re willing to pay. They know you’ll be expecting negotiation, so you may ending up getting close to your original asking price, or at least a price you’re satisfied with. Again, trust your agent to know the market and negotiate a fair price for your home.
#3 - Is your price too high?
If you’re getting more than one low-ball offer, it may be a sign that your original asking price is too high. It’s best to set your asking price based on comps - the listing prices of similar homes in your area, which your agent should show you comps when you first set the price. If you’re testing a higher price and receiving low-ball offers, it’s probably time to tweak your asking price or negotiate with the offers you have.
#4 - What do you really need?
Sometimes, price isn’t the most important thing when you’re selling your home. You may need to get rid of the property quickly or you may prefer all cash for payment. If you get a low-ball offer and want to accept, you can ask your buyer for some perks that may make the deal better. Here are some ideas a buyer may be open to:
- A preferred closing date
- A solid mortgage pre-approval letter (not just a pre-qualification)
- A larger down payment
- Fewer inspection contingencies
Selling a home isn’t easy. It’s a process that requires patience and willingness to let go of some expectations. Don’t worry about how you’ll look if you accept their low-ball offer or reject it. The main thing is to trust your real estate agent to know the market and to go with the best thing for the situation as a whole.
If you’re looking for a trusted real estate agent, I’d love to meet with you! You can contact me through email, phone - (863) 450-8847, social media, or my mobile app for any real estate question. Looking forward to hearing from you!