As the real estate market bounces back from the low period caused by the recent American recession, buyers are adjusting to the idea that prices are once more on the rise. Many feel that they can still shop with an “it’s entirely a buyers’ market” mentality and consequently will make offers well below asking price. This can cause substantial friction between buyers and the sellers who may feel insulted at such a low offer.
As a seller it is important to keep in mind that a potential buyer who makes you this kind of offer is probably expecting a counter-offer. Just as your real estate agent offered you information on properties comparable to your own and helped you price your home reasonably, the buyer’s agent has undoubtedly educated their client about the true market values of homes in their desired areas. The drive to get a home at the best possible price is understandable, but a buyer who is serious about purchasing your property will often listen to reason.
In the event of a lowball offer, it is important that you refrain from becoming so insulted you lose sight of the opportunity at hand. It may sting that someone values so little the home in which you have invested so much, both financially and emotionally, but keep in mind that any offer should be considered seriously. Beginning with a very low offer is often just a tactic that buyers use to start negotiations and for the most part they do not expect to purchase your home at that price. Instead, they hope to settle on a price somewhere in the middle. Ultimately, this tactic could work in your favor, because the knowledge that you have one offer in already may well encourage other potential buyers to put in a higher offer.
If you have any questions about the best way to price your home, or how to handle tricky negotiations, please contact Kathleen Diringer at (415) 793-3040 or by using this form. Thanks to her extensive experience (both personal and as a seller’s agent) Kathleen has excellent negotiation skills, and with her help you WILL get the best possible price for your home!