What To Do When A Low Offer Comes In
Your home has been listed for just a few days, and your Realtor calls with great news. The people who looked at the house last night have come in with an offer to buy it! When the agents arrive to present the offer, you are excited and nervous. As they explain the price and terms, however, you feel that the price is a little too low and that the offer contains some terms that will be either expensive or inconvenient for you to meet. Should you try to work it out or wait for something better?
If your home is priced well, you can reject the offer and be reasonably confident that a better one will follow. In a buyers' market, however, you may not have that luxury. Try to get an idea of the buyer's overall strategy, and ask your Realtor for advice. Do they really want your house or will they move on to another property if you make a counter offer? Can they afford to pay a higher price? Are there ways to close the gap with a small owner take-back, or with terms that will increase your bottom line? It may be necessary to take a hard look at your asking price. If your price is on the high side, the offer may not be that unreasonable. We recommend that you don't "just say no" to a low offer until you have explored all the options.
If you get an offer that is a lot less than you expected, remember that the first offer is often the beginning of the negotiating process. Your agent can help you understand the pluses and minuses of the offer. Sometimes, an offer with a lower price than you expected, can look quite attractive once you understand all of the terms. If you are willing to make some compromises, the buyers may accept a counter offer that will give you more money. A lower price from highly qualified buyers may be better than one from people who may have difficulties with financing and have not been pre-approved.
Sellers can lose either advantage if they do not counter an offer that a buyer has made. Even if the opening offer is beneath what the seller feels is reasonable, it is advisable for the seller to respond with a slight reduction from the asking price. The most important component in negotiating is good communication and to keep the negotiations moving ahead.
The best way to handle a low offer is to counter it with definite terms that are favorable to the seller. A counter offer has two advantages in that it keeps the buyer interested and it moves the negotiation forward and gives the buyer an opportunity to submit another offer that the seller is more likely to prefer. By: Sean Remington Article Source: http://www.ArticleDashboard.com Sean Remington was voted Albuquerque Metropolitan Board of REALTORS(r) "2005 Rookie of the Year." To learn more, point your browser to Albuquerque Real Estate.
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