Nothing can be more frustrating than to have your home on the market for a long time without ever receiving an offer. Even more exasperating is to finally receive an offer that is substantially below your asking price. The most common emotion is anger. An angry seller often chooses to not counter or make a counter offer or maybe a token offer of a hundred dollars. What is the way to react to a low offer? Here are some factors to consider:
Is your list price realistic?
For years I have seen sellers react in horror when an offer comes in that they perceive to be unrealistic. The problem often, however, is not the offer but the asking price. So, the first thing you need to do when reacting to a low offer is to examine your list price in relation to the recent selling prices to be sure that your price is reasonable.
Why is the buyer offering this amount?
Is this merely a negotiating ploy? Is the buyer really in the wrong price range and can they afford your home’s true value? Are there market facts upon which this offer has been based or is this someone who is simply looking to steal a home from a desperate seller?
What are your needs?
Do you really need to sell or are you just testing the market? If you are seriously interested in selling, it would be prudent to counter with something. Perhaps not your lowest figure, but something that would indicate that you are willing to negotiate in a fair and open manner. The buyer’s reaction would then tell you a lot about their intentions.
ADVICE: The art of negotiating is best left in the hands of the professionals. Your Realtor® has negotiated many offers in the past and has probably developed a sixth sense of what to do and not do. Don’t just throw a temper tantrum when a lower offer is presented. Use your Realtor’s advice and experience.
