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Monday, October 17, 2016

What Should You Do With a Lowball Offer?

If you receive a lowball offer on your home, don’t fret. There are five steps you can take that will turn that offer into an advantage.

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If you’re a home seller, what should you do if you receive a lowball offer? There are five important steps to follow if you want to turn it into an advantage:

  1. Don’t get insulted, and don’t take it personally. This is just an offer on paper. You don’t know if that buyer has been coached to write a lowball offer or if they’re coming from an area or part of the country where lowball offers are common. Take a deep breath and be excited that you have an offer to start negotiating with.
  2. Respond gracefully. Thank the buyer and the agent for their offer. Thank them for taking the time to put it forth and tell them that you hope that it comes together and you can both come to mutually agreeable terms. This will demonstrate that you’re happy that your offer is on the table and you’re happy to work with them.

  3. A lowball offer is just an offer on paper—don’t take it personally.

  4. Write a strategic counteroffer. Make sure you and your agent sit down and discuss how to respond to this. The offer, no matter where it is, should not affect how you negotiate your price. You and your agent should have a strategic plan to go back and give a counteroffer, the terms and conditions you’re willing to accept, and a reason to give to the buyer explaining why it’s not close to their number. A good agent will have this ready to go before you even ask.
  5. Expect a counteroffer to your counteroffer. The buyer isn’t going to accept your counteroffer right out of the gate. Once they come back with their counteroffer, you’ll want to present your bottom line if they don’t meet your number. Be ready for your next move to be your best and final approach.
  6. Hold firm to your bottom line requirements. When you present your best and final offer, do not jump at another counteroffer if they go that direction. If that happens, thank them for their effort and their attempt and tell them you’re going to seek other offers. Hopefully, their response to your next bottom line is acceptance of your terms.

If you have any more questions or have a topic in mind you’d like to see me discuss, please don’t hesitate to email me or give me a call. I look forward to hearing from you!