Getting a lowball offer on your home can be frustrating, but it doesn’t have to derail your plans. In today’s market where home prices remain high and interest rates hover around 6-7%, knowing how to respond strategically is key, yet most agents out there absolutely dread negotiating even though that's what they're paid to do. Here are three smart ways to turn a low offer into a winning deal and negotiate terms to your advantage.
1. Go back and evaluate the market
Before rejecting the offer outright, make sure it's not completely off the mark. In a market that's changing quickly, values can change in just a few weeks time. The price you went on market with may have been justified with comparative sales and a market saturation report by your agent, but things may have shifted. If you feel your number is still justified, as the other agent where they are getting their price from. Is it the max the buyers can afford and they are shopping above their price range?
Is the agent pulling comps from a different location or type of home. Keeping the lines of communication open and respectful may get you what you need without a lot of back and forth.
2. Always send a counter offer (well, almost always)
First determine if it's truly a serious offer, which can be discovered quickly through a conversation between agents.. Without directly asking "are you serious?" dig around a little and determine why the buyers made the offer at all. Are they broadcasting offers across town, how many times have they visited the property, what other properties are they considering?
Gently probing beneath the surface will give your agent the information they need to advise you on next steps.
3. Figure out a way to meet in the middle
If you're selling a home, you've likely gotten attached to the price you listed at. You've looked at how much you'll net, and started planning what to do with the money. Referring back to item #1, remember that markets can shift quickly so keep this in mind if you don't have an offer right out of the gate.
If you have to get a certain number, consider having your agent counter with a shorter inspection period or other tighter deadlines, and ask where else you can tighten things up so you can close faster and assume less risk. By understanding more about what the buyer can afford or what they need to get out of the deal, there's almost always a way to make it work for everyone.
Getting a lowball offer can feel bad, but it doesn't have to end there. Make sure you discuss this possibility when you are interviewing your agent to be sure they have the negotiating chops and experience to help you win and get what you need.
Want more info? Visit my YouTube channel for more tips and check out the Seller Intelligence section of our website. I'm always ready to be your real estate resource!
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