How To React To A Low Offer For Your Home
You should prepare to receive offers lower than your listing price if you want to sell your house. However, you should not dismiss such offers without due consideration. A low offer can become a good sale if you know how to make a counteroffer. Below are some tips on how to counter a buyer's low offer.
Determine Your Bottom Line
You should have a minimum figure in mind when selling a home. For example, listing a home for $500,000 doesn't necessarily mean that you won't accept a lower figure. Determine how low you can go and submit a slightly higher counter offer. That way, you also leave some room for further negotiation.
Consider the Buyer's Motivation
Determine the buyer's motivation for the home purchase. The motivation will tell you how likely the buyer will follow through with the deal. For example, a buyer who has accepted a job offer in the area is probably more highly motivated than a buyer just looking for a change of scenery is. Use the buyer's motivation to determine how much you can deviate from your asking price.
Focus on the Positive Features
You can also boost your property's appeal by highlighting its positive features. For example, you can remind the buyer:
- How great the school district is if they have children
- How safe the neighborhood is if they have a family
- How spacious your home is relative to other homes in the neighborhood
Knowing the buyer will help you customize your response to features relevant to their situation.
Incentivize the Buyer
Another tip is to offer some incentives to the buyer. For example, you may:
- Offer the buyer some of your appliances
- Relax some of your contingencies
- Agree to share some of the closing costs
- Move the closing date to suit the buyer's demand
Stick to incentives that won't cost you much and ruin your bottom line.
Include Comparable Sales
Remind the buyer that your asking price is within range of similar houses in the neighborhood. You can do this by showing the buyer's prices for recent sales in the neighborhood. For example, if three-bedroomed houses have sold for over $400,000 in the last few months, the buyer should not expect you to sell a similar house way lower than that.
Hopefully, your negotiations with the buyer will be successful, and you will sell your home at a good price. Don't forget to use an agent and listen to their advice throughout the sale.
Reach out to a real estate agency in your area, such as Idyllwild Properties, to learn more.