The first reaction is always frustration. You wonder if the Buyer even looked at your price before writing the offer.

Take a deep breath…

The good news is you have someone interested in your property. The bad news is you are far apart on what you feel is a fair value. You have choices; the first would be Accept the offer, not likely. Second, Reject the offer, but now you have lost a potential Buyer. Third, Counter the offer.

Unless you have multiple offers or it is ridiculously low you should entertain the option to counter.

Counter the purchase offer…

Unless we are in a Sellers market with low inventory I have never had a Buyer say, “Pay the listed price”. Why is this? Some want to know your bottom line price; others think its customary to negotiate and still more may just not agree with your pricing. After all, when was the last time you walked into a home that looked just like yours!

Your best response is to counter the offer with a price you’re willing to accept. Maybe you offered closing cost concessions or were willing to pay for a homeowner’s warranty or possibly leaving that 80’ TV.   Consider removing these from the counter to help offset the low offer price.

 

What are the terms…

Maybe you are selling due to a job transfer and need to move quickly. Review the terms of the offer and look for contingencies. Settlement date, home inspection and financing all could play a key factor in the price they offered. Use all of these to your advantage when considering your counter.

 

What had sold in your neighborhood recently…

It’s possible your home has been for sale long enough that the market changed. Homes sell every day so work with your agent to review the most recent sales activity. Buyers have agents too and most of them have access to the local real estate association listing service (MLS) that helps them arrive at a price. It’s possible the Buyers agent is using comparables that are not similar to yours. Feel free to include your comps with the counter to justify your price.

 

Use your agent…

Ask your agent to speak with the Buyers agent. Use them to get a sense of the Buyers situation, are they an Investor, First-time buyer or Relocating from out of the country. This could help with your decision to continue negotiations.

 

Keep your game face on…

You were a Buyer once, what signs did you get from the Seller about their situation? Was the house empty, did the ad say, “bring all offers” or “relocating”. Everyone has a reason to sell but don’t look desperate. Take a step back and review the wording in your advertisements. Also, if the house is empty consider leaving some furniture behind when you move or maybe work with a staging company to dress it up. Also, don’t forget the landscaping.

 

You want to keep as much of your hard earned equity as possible, that’s why ReallyONE was created. Sellers and Buyers have more information at their fingertips than ever before. We understand that and have developed a process allowing ReallyONE to charge a total commission of 1%. That savings (up to 5% off the industry standard) gives you another option when considering low offers.