What should you do when faced with a lowball offer while selling your home?
A lowball offer is a slang term for an offer that is significantly below the seller’s asking price. Each seller’s expected price is different. Some sellers think that an offer price lower than the listing price is a lowball offer, and some sellers think that an offer price lower than the listing price by 10%-20% is a lowball offer.
When receiving a lowball offer, please consider the following steps to comprehensively evaluate the sincerity of the buyer’s offer.
1. Remain calm and objective
You may feel sad when receiving a lowball offer, but you can try to be objective. Focus on the negotiation process.
2. Careful review of the offer:
It is recommended that you carefully read the terms of the entire Residential Purchase Agreement. In addition to the purchase price, you can learn more about how long it will take for the buyer to close Escrow, if it is a cash purchase, whether the funds are ready, if there is a loan, how much is the down payment, and whether there is any contingency in the Offer (for example: loan contingency, house appraisal contingency, home inspection contingency, etc.). Determine whether the content of the contract is reasonable or whether further negotiations are required.
3. Seek advice from your real estate consultant:
Consult with your real estate consultant, who can provide valuable insights based on their experience of the local market. Your consultant can help you evaluate the situation, strategize your response, and negotiate on your behalf.
4. Prepare a counteroffer:
If you are still interested in negotiating, you can consider making a counteroffer. This can open up communication and reduce the gap between both parties’ expectations.
You may also wait for a more favorable offer if the current offer is not ideal. Or you can adjust your pricing strategy。
Each transaction is unique. How to find a balance with buyers is very important. Maybe during the negotiation process, you will receive a satisfactory offer.