Lowball Offer on Your House – Should You Reject or Counter It?
You’ve had some showings and a few calls. Your agent is confident your home will sell. Then it happens. Your agent calls and says he has good news and not so good news.
The good news is he is holding an offer on your property. The bad news is that it is $20,000 below your list price. Additionally, the buyers are asking for $7,500 in closing costs.
Lowball Offer – what do you do – counter the offer or reject it all together?
Low ball offers are not uncommon. However, it is very easy to become angry and act emotionally. My advice is to not get emotional, which is where the knee jerk to reject comes from.
Always counter the low offer. An outright rejection often times continues a chain of emotional reactions. You reject because you are insulted. The buyer decides that you are unreasonable and refuses to make another offer. They look elsewhere and are never to be heard from again. On the positive sign, someone wants your house. Now is where the action happens. They call in “negotiation” because that’s what it is – negotiation of price and terms. When we receive an offer, that’s the starting point. Never reject an offer. Counter back at full price if you wish – but counter back. Keep the discussion going.
And while all the back-and-fourth is going on, another offer may come in that’s much better. After all, the status in the MLS still shows the property is active and available at this point. Never reject an offer, no matter how low it is or how insulting it feels. Counter offer. You may just be surprised at how quickly a buyer says yes. If they say no, at least you tried.