Handling Low Ball Real Estate Offers
Even in our improving strong New Orleans housing market, we are still having to counsel our sellers about handling low ball real estate offers. Most of the time, people are angry. Or confused. Or wondering why the heck we even brought them such a ludicrous offer.
The flip side of that coin is buyers aren’t quite convinced that the market is favoring sellers, assuming that they can still get the bargains that New Orleans real estate offered in the past. My, how times have changed.
4 Tips for Handling Low Ball Real Estate Offers
Don’t get emotional
Now is not the time to forget that selling your home is a business transaction. We’d say it’s not personal, but we all know that’s not true. It’s personal to you and, unless the potential buyer is an investor, it’s personal to them too. But that doesn’t mean that every buyer is trying to insult you – they may just be attempting to negotiate the lowest price possible.
Counter the offer
It’s tempting to say “just reject it”. But that’s not how negotiations work, is it? In reality, we advise our clients to counter ever offer because you never know what the other party is thinking. Writing a strong counter offer opens the door to negotiations while letting the buyer know where you stand on your price.
Do the terms outweigh the price?
If part of your moving plan is to remain in the house until the end of the summer, a lower price might fit perfectly since most buyers want to close and move within 45-60 days and cash buyers like to move even faster. While price is the driving factor in most decisions, more attractive terms can make that low ball offer more palatable.
Review the comps with your agent
Has the market in your neighborhood changed since your home was listed for sale? Now is the time to take a fresh look at the comparable sales to determine if the offer is actually more in line with recent sales than your listing price. Remember, those recent comps are what an appraiser is going to use when assigning a value to your home for the lender and we all know that low appraisals can kill a deal.
Technology can’t replace the expertise of a knowledgeable local agent – let us help you feel confident in your home buying or selling decision. Contact us today at 504-327-5303.