It is up to the seller whether or not they respond by countering to what they think is a" lowball" offer.
But in my experience, I think that are many arguments to recommend that, YES, It just might pay off.
I have had some offers come together that at first glance seemed impossible.
You never know until you negotiate it out to the end to see if both parties can feel that they are benefitting from the transaction.
Here is some free advice:
- Take the " emotion" out of the situation by understanding real estate offers are not " personal"
- Get the current statistics for home recent sales, average days on market, and price per square foot, ect.
- Try to remain open to the procsess and seek advice from trusted experienced sellers if need be
- Trust that your agent has your best interest in mind, and if you do not truly believe this, maybe you need a new Realtor!
- Be realistic about what your home is worth ( no sentimental value!)
- Think of the big picture
- Physically tour your competition
I am recommending appraisals for some of my listings. I don't do this often, but sometimes it is good for the seller to know that the Realtor is not the final word on value. The buyer's are clearly in the drivers seat, and a professional appraisal prior to listing just may answer some questions for everyone involved.
In 2008, 2 out of 3 homes listed for sale in Spokane Wa. NEVER SOLD. That is why I advise trying to work with what might seem like a " lowball offer". Inch by Inch, it just might come together!
Food for thought...
BethAnn Long ~ Spokane Realtor- Coldwell Banker Tomlinson South Inc.
509-362-4607
...there's no place like your home!
Countering on a "lowball" offer is a good idea as long as it's a reasonable and fair counter offer. I've worked with Sellers that will counter at near list or make a counter that is as insulting to the potential buyer as the original offer was to the Seller. You're right that it's important to take the emotion out of the situation (easier said than done) and counter based on what the house is worth (the appraisal is a great idea!) and trying to reach common ground....and, of course, sell the house.
Yes Ken,
I think responding is better that ignoring, it has suprised me a few times. True, many times the parties are too far off. But I mean GEESH. If MEN AND WOMEN can get married, anything is possible!
Beth and Ken,
Both make great points, although it is difficult to take the emotions out of the transaction. I have found that if we are prospecting and generating business on a daily basis (or atleast trying), the emotion part is easier handled because we are not attached to the commission as it being the only one. But great points...........
Mario Zavala
Century 21 United Realty
I recommend responding to all offers. In the case of a truly low-ball offer, then I sometimes suggest countering at full price rather than ignoring it.
In our area, a low ball offer, especially on a bank owned property gets a full price response. When dealing with a vanilla seller, a modest deduct shows interest yet still lets the buyer know that they are a long way off. If the buyer is really interested, they usually responds more appropriately, assuming they finally listen to their Realtor. If they don't have a Realtor, then they are not serious.
Good disussion here, THANKS!
Bethannm
Great Post. Low ball offer is at least it is a beginning, both buyers and sellers should realize it in this current Real Estate Market.
Thanks for sharing,
Matt Naumann
BethAnn, That low ball offer may be an eye opener for your seller, or a slap in the face. It is our job to use it to council our client into a successful transaction!
Can you believe it's September already?
Paul
Matt and Paul...YES you have got to start somewhere!
Absolutely. As far as I'm concerned, these days a seller better grow some "thick skin". ANY offer is better than none.
UPDATE: I wrote this in regard to an actual event. The offer came together, and we settled on a number and both parties are HAPPY. At first, we we miles apart.
BethAnn, I agree, The counter offer represents an attitude of cooperation and is an indication of EQ (emotional intelligence).