Here’s How To Respond To A Low Ball Offer

Now that the market has cooled in comparison to its peak in 2017, homes are staying on the market longer which gives buyers more selection and more time to make their initial offer. Along with buyers having time on their side, they also have a little bit more flexibility in negotiating price, and with that, sellers need to know how to respond to a low ball offer.

 

First, before we get too far into responding to the offer, let’s talk about your seller’s strategy for a quick second. Pricing your home is a strategic move, so when doing so you and your agent will want to do your research as there are many factors that affect the selling price of your house. Have a pre-listing home inspection done so you know what you’re up against, consider how seasonality affects price and most importantly, be realistic (what you think your home is worth might not align with the market). Now that those housekeeping points are out of the way, here’s a few tips on how to counter an offer that is lower than fair market value:

 

Leave The Emotion Out Of It:

This may sound like an impossible feat but selling your home should be a decision that is based on logic and data. Now that’s not to say that an agent would expect you to be emotionless, but don’t let your feelings cloud your judgment while going through the negotiation process. This will allow you to make sound decisions and keep the selling process moving forward.

 

Set A Plan With Your Realtor:

This is one of our favourite ways to approach the selling process! While working with your agent to determine your homes’ fair market value, you should also determine the lowest figure you are comfortable accepting for your home. Setting up a range that’s within your comfort zone will help you mentally prepare yourself for the offer stage.

 

Remember Everything Has To Start Somewhere:

Try not to take a low initial offer personally and remember that it’s just a starting point. This is where you’re agent will go to work for you. They will advise you on what the best, strategic next steps are and work to get you a solid final offer for your home. Just keep in mind that it’s a negotiation, and both you and the buyers may need to be flexible in order to strike a deal that is beneficial for both parties.

 

Be Okay With Walking Away:

Remember that it is absolutely okay to walk away from a deal if you feel that, even after a few counters, the offer is still to low. There will be other offers and you are absolutely free to say no and not accept the first offer that comes your way.

 

Your home is an investment, and how you approach the selling process can dramatically impact the ROI on that investment. When looking to sell, make sure to give us a call – we’d love to chat about how we can go to work for you!