You might have expected that your house would sell for exactly what you set the price for, and a buyer making an offer for much less could be pretty frustrating. So what exactly makes for a lowball offer? Typically it’s 25 percent or less below the list. But with all things being unequal, what makes an offer a lowball may vary from market to market and price range to price range.
You could know off the bat when an offer is just downright ridiculous, but it’s still best to not let your emotions get the better of you and consult with your agent because they might have a better gauge and understanding as to how offers go. It’s tempting to block off further negotiation with buyers who make such offers but remember to keep your calm because after all, you are engaging in business. It could be that your buyer may have just gotten bad advice from people around them on how they should price their offer, so it’s still advisable to keep communication lines open. The offer may have not started on the right foot, but tables can be turned if you just know how to negotiate.
Don’t waste your time thinking about how you might be perceived. Consider all offers with a cool head and you might end up with a good deal. You can have your agent ask the buyer’s end on their reasons for making an offer lower than the asking price. Knowing their answer could actually be beneficial to you; you could view your property using a different lens. Are there parts in the house that needs fixing? Has the house been for sale for longer than the ideal time? Knowing the answers to questions such as those would help you evaluate just what you need to improve on it so that it could look more appealing to the market.
A trusty and experienced agent could spot when a buyer – despite making a low offer – is smitten with the house and are willing to raise their offer.
If you’re going to make a counteroffer, it’s best to present it with data such as a market’s list-to-sales price ratio. Also, you can have your agent make a written document containing the best comparable homes to yours. Include the following statistics from two months ago to the same measurements today:
a.) Number of similar homes on the market.
b.) Number of similar homes sold and closed since the listing’s inception.
c.) Number of listings that expired unsold.
d.) Number of pending transactions.
e.) Number of new similar listings (your competition) with the data sheets and pricing
By knowing all this information, you would have a wise estimate on the lowest and highest price you can expect.