Should I Counter A Low Ball Offer?
Sellers, if you receive a low ball offer, should you counter the buyers offer or just decline it? The answer is yes, you should always counter any and all offers. Always put the ball back in play!
It’s not uncommon for sellers get upset that a prospective buyer would low ball them, but many times the buyer is just feeling you out. How do they know what the bottom line is? What do you have to lose by giving them a counter offer? Nothing. You are that much closer to a deal. Really, It’s the starting point in negotiation.
Usually both sides are willing to give a little. It’s better to have a low ball offer than no offer at all.
Even if you are unable to ratify the contract with that particular buyer, you can use it to your advantage later. When the next agent calls to see if you have had any offers, you can tell them that you had an offer, but were unable to come to terms. This tells the new buyer that others like your home and see the value as well.
Note: Sellers, pricing your home correctly is one of the most important things you can do to help yourself.
Indeed, as you say, the buyer may be testing the water. Always come back with either a reduced price, or re-assert the original price.
Stan,
Thank you very much for the comment! Counter offers are probably one of my favorite parts of the transaction. While some Realtors don’t like doing them, I feel it is where I can earn or save my clients the most money.
-Dave
But countering offers may backfire sometimes. If the buyer is price sensitive, he/she is likely to go for relatively good quality but less in price. So making an counter offer often requires additional analysis.
Rachael Geller´s last blog post..Rocket Theme
Thanks for your comment Rachael. Nothing works all the time, but my point is it’s better to put the ball back in play because you never know, than just say no.
Cheers,
Tap
I’ve never thought about that before. Declining just cancels any chance of a sell, while counter offering gives you some sort of chance. Great post, thanks for sharing.
[...] Read my blog on “Should I counter a low ball offer”? [...]
Yes, it is easy to become emotional when someone throws a low ball offer at you, you end up feeling insulted. But I like your advice and your reasoning.
Retta@King City´s last blog ..North Plains Oregon
@Max – yes, it’s not as obvious as one would think. Thanks for commenting on the post!
@Retta – yes when buying a car they say to try avoid getting emotional. But when buying a house it’s hard not getting emotional. By the time the buyer is making an offer they are usually dreaming about how they are going to use the property.