Selling your home is somehow tricky. You have to go through intensive processes and accomplish several coursework to finally bring your property out of the market. Usually, this includes your home repairs and improvement projects, marketing strategies to sell a house faster, and finding comps for your house to come up with a fair value for your property.
You are done with all of this hard stuff and have posted your property for sale. After several weeks of your live advertisements, fortunately, you are receiving purchase offers from interested buyers. However, upon reviewing the documents, all you get are low ball offers. Frustrating, isn’t it?
What is a Low Ball Offer?
A low ball offer is a purchase offer from a buyer that is lower than the seller’s asking price. Typically, low ball offers are far less than your house’s worth. This kind of offer, in some way, frustrates or insults home sellers.
If you were able to receive such offer, don’t feel any aggravation as this commonly happens to the majority of home sellers. Instead, follow below steps to respond to low ball offers.
1. Stay Calm
You have spent thousands of dollars and exerted so much effort to build your home. Then you just received an offer that is insultingly lesser than your house’s worth.
Although some home sellers would feel upset with this purchase offer, it’s vital to you keep your composure. That normally happens to every home seller.
Moreover, don’t just easily dump the offer as it is when the real business begins. Don’t let your emotion ruin the sale instead make wise business decisions to come up with a pleasing offer that both of you would agree.
Remember, you have found someone who’s interested in purchasing your house. Turn this probable buyer to a serious buyer.
2. Focus on Selling Your Home
Low ball offers must not hinder you to make necessary actions to sell your house fast in Washington DC. Remind yourself that you are making a business so you should focus on this goal. Taking the insult seriously won’t help you anyway.
Find more offers. Work on your marketing strategies and study the market trends to uncover more possibilities.
3. Review the Comparable Market Survey
The initial process in home selling is to prepare and review the comparative market analysis to help you price your house competitively. However, since the real estate market changes rapidly, the analysis only remains consistent for a couple of months. Therefore, you have to revisit the comparative sale prices within a certain time span.
Prices go up and down and it is possible for your property to get below or above the listing price and become incompetent. If you get low ball offers, request for your buyer’s list of comparables and vet whether their purchase offer meets the current market value.
Some buyers don’t have the list and just made offers according to statistics that aren’t legit and real.
4. Review the Terms of the Purchase Offer
Although the price is the biggest factor in selling your home, it is not certainly the sole thing. So if ever you received a lowball offer, don’t immediately reject and abandon the document. Price is only a single component out of the many factors and terms so assess the offer before you rip it off.
The terms to consider includes the concession date, inspection contingencies, seller concession amount, and possession date, amount of earnest money, the amount of repairs, buyer’s down payment percentage, and type of financing your buyer will take.
5. Retort with a Counter Offer
Receiving a low ball offer means someone is interested in your property. Grab this big opportunity. Instead of getting frustrated of their proposals, make way to flip the insult to a chance. Respond with a counter offer.
Your counter offer should include your lowest and final price. By doing this, you eliminate playful buyers and avoid the exchange of offers every now and then.
However, if you make a counter that offers the full price, buyers would possibly deter from sealing the deal.
Low ball offers are part of the game so don’t stress out. All you can do is to follow above steps to make this challenge as an opportunity to sell your house at the price it deserves.