A Guide to Handling Lowball Offers
The downtown market is shifting. We’ve noticed a lull in sales, there are more homes on the market, and in general, it takes a little bit more to sell this year than it did last year.
When situations like this occur, some buyers become overly confident and start to throw around lowball offers to see what kind of deal they can get. If you receive a lowball offer on your home, here are some things to keep in mind:
1. Curb your emotions when selling your home. Selling a home is a very personal experience, as well as a financial one. If a lowball offer comes in after you’ve been anxiously awaiting a response to your listing, it can feel insulting. However, remember that this is a business decision for both you and the buyer. Don’t take it too personally if buyers start to feel like they have a little more leverage and give you an offer under what you’d like.
2. Don’t ignore any offers. I’ll repeat: Never ignore an offer. Even if you think it’s a longshot, I can’t tell you how many deals I’ve seen come together after starting very far apart. Sometimes it takes a lot of effort, and sometimes it doesn’t. Don’t give up on an offer and hurt your chances of selling your home in the intended timeframe.
3. Don’t reveal too much information. Don’t tell your buyers the minimum price you’d be willing to accept on the home. Before you start splitting the difference, make sure the buyer is ready, able, and willing to move forward with the purchase. If they start trying to pull you down, give them a price that is very close to your asking price. That way, you can see how close the buyer is willing to get to an offer that is more acceptable in terms of your asking price before you reveal the minimal amount you’d accept.
4. Keep your end goal in mind. By focusing on the outcome you hope to get, you may have a shift in perspective regarding what is the right number to accept. This is especially true for move-up buyers; you could actually save more on a purchase than you’d be giving up in a sale.
In the end, you don’t have to be scared of lowball offers, but don’t let them get carried away, either.
If you’re looking to buy or sell a home in today’s market and are looking for guidance on how to proceed, reach out to me. I’d love to talk to you about your situation.
