How to Handle Low-Ball Offers

Tips on How to Handle Low-Ball Offers

If you've had your home on the market for months (three to six), and you've dropped the price already, you are probably beginning to wonder how much lower you can go.  Well, someone may offer a low-ball offer, which can be 10 percent or more below the list price and involves some sort of strategic negotiations.  Before slamming the door on this offer, here are some helpful tips.

• Don't reject the offer right away: It is important that you recognize that this is a negotiation game and the buyer is serious or he wouldn't have made an offer.
• Analyze your own goals and needs: How much do you need to come out of this deal in order to move to your next home?  What are you going to counter? 
• Conduct a comparative analysis: Check the temperature of the marketplace.  What has happened in the housing market recently to get this buyer to make this type of offer?  Also, take stock of the present inventory in your neighborhood and how they are priced comparatively.  It is important to recognize that your home may be priced too high compared to similar houses. 
• Negotiate!: Keep the conversation alive with the buyer for as long as you can.  Give up a little bit at a time.  Also, use a lot of complements about the offer, the buyers and the agent.  It helps keep things civil!  Remember, if the offer is too low, always counter; don't walk away. Sometimes buyers want to test the water.
• Work together:  Ensure the buyer agent and his clients are aware that you want to work with them.  If you have been waiting this long to sell your house, what are another few days or weeks?  Keep everyone engaged in the process to get your goals met – and on your way to your new home.
• Offer your final counter: Make your final offer and stick with it.  Keep in mind that you don't want to be too stubborn that you lose the buyer because of $2,000 or so.
• Be patient with the process: Understand this process takes time and both the buyer and seller want to meet their goals.  By taking the time to work together, you can arrive at a deal that is a good compromise for both the buyer and seller.