Should Home Sellers Ignore Low Ball Offers?
When a seller receives an offer on their home they are usually filled with joy and excitement. However, sometimes that excitement quickly fades when they find out it’s a “lowball offer.” Some sellers are so angry they refuse to even respond to the offer, no counteroffer, not even a rejection.
However, sellers need to realize when a buyer takes the time to submit an offer on their home it could turn into a viable offer. So unless a buyer states it’s their highest and best offer there is hope they may be willing to come up in price, a price the seller will agree to.
3 Things to Consider When Dealing with Low Ball Offers
So if you’re wondering whether or not you should ignore a low ball offer the answer is no but before responding they need to evaluate the situation. So let’s take a closer look at why you should never ignore low ball offers and how to properly respond.
First and foremost, is your home overpriced? If the list price of your home is more than recent comparable sales the buyer’s offer may not be a low ball offer at all. Odds are your listing agent reviewed the most recent neighborhood sales prior to listing your home and recommended an asking price. Did their asking price match your current asking price?
Prior to responding to the buyer it’s worth taking a second look at recent sales and the overall market conditions. Just because your neighbor sold for a certain amount doesn’t mean you’ll get the same or more because you think your home is “better.”
There are many factors that determine what a home is really worth, but when it comes down to it a home is only worth what a buyer is willing to pay and what it will appraise for if the buyer is obtaining financing. So if your home isn’t selling and you’re only receiving low ball offers or no offers at all it could be overpriced.It's not uncommon for sellers to ignore low ball offers, but is this something you should do when selling your home? Consider these 3 things first. #realestate #homeselling
Countering a low ball offer only takes a few minutes, so what do you have to lose? You don’t necessarily need to counter in writing. Oftentimes, the listing agent and buyer’s agent will verbally negotiate. Then once both parties come to terms the written offer will be revised and all parties will sign off.
You need to keep in mind some buyers just want to “try” submitting a low offer with the hopes of getting a great deal. However, if you counter back, even at full price the counter may show them there is no chance you’re going to “give your home away.” You also need to know it’s not uncommon for buyers who submit low ball offers to increase their offer to a realistic price. So before you decide to ignore low ball offers you should really reconsider taking a few minutes to counter.
Are you being irrational? What you consider a low ball offer might not be a low ball offer at all. So it’s best to set your emotions aside and look at the facts before you ignore low ball offers.
Sure, you may have done costly home improvements to your home over the years that you see value in. However, it doesn’t necessarily mean a buyer will see the same value and is going to pay more for your home improvements.
In fact, some home buyers may deduct money from their offer for the home improvements you made because they will need to spend money to “fix” them.
While it’s certainly easier said than done, you need to remove emotion when responding to an offer. A top Realtor will be able to help keep everyone calm and see if there is a chance this low ball offer will turn into a strong realistic offer.
If you receive, what you consider to be, a low ball offer on your home take a deep breath. Then discuss it with your agent and come up with a game plan. Oftentimes sellers will discount and ignore low ball offers thinking they’re a complete waste of time. However, that offer you thought was going nowhere may turn into the best offer you’re going to receive.
So before deciding to ignore lowball offers come up with a counteroffer. Even if it’s a full-price counter offer it at least keeps the buyers engaged and if they’re serious they’ll play ball and accept your terms or counter back. Once again the buyer took the time to submit an offer so they clearly have an interest in your home, so don’t discount them, there are ways to deal with low ball offers.
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Popular Question About Low Ball Offers
Best funny response to low ball offer on house? There is no need for a seller to waste time and energy trying to think of funny comebacks for low ball offers. Instead, they should be focusing on finding out if there is any chance the low ball offer will turn into a viable offer they’re willing to accept.
How to politely decline a lowball offer? If a seller is deadset against countering a lowball offer they can simply thank the buyer for submitting an offer on their home. However, due to the terms, they are not interested in the offer as written. If they’d like to improve their terms and resubmit their offer they’ll be more than happy to consider their new terms.
What percentage is a lowball offer? What percentage is considered a lowball offer ultimately depends on the market conditions and whether or not the property itself is priced correctly. There is no set percentage that universally defines a lowball offer. However, what is considered a low ball offer on a house is generally considered to be significantly below the asking price or the market value of the property. This percentage usually falls around the 10% to 20% mark.
About the Author
Top Wellington Realtor, Michelle Gibson, wrote: “Should Home Sellers Ignore Low Ball Offers?”
Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.
Should Home Sellers Ignore Low Ball Offers?