So, you’re selling your house, huh? You had the kitchen remodeled and put in beautiful tile in each bathroom. Your home is worth every cent that you’re asking for right? Despite that, you received a low offer from a potential buyer. Where do you go from here? Below are a few steps on how to handle a low offer from a buyer.

First, do not get insulted. People have a natural tendency to become upset or angry when they receive a low offer. But a buyer’s decision to start off with a low offer doesn’t necessarily mean that he or she is trying to take advantage of you. The buyer may be from a market where offering low is normal or where home prices are substantially lower than the area that you are living in. The initial bid is a starting point and there is plenty of room for negotiation.

Next, respond with grace. Even if you are not crazy about the initial offer, responding to the offer with gratitude and kindness can go a long way. Creating tension by letting the buyer know that you think their offer is less than ideal is not helpful for the negotiation process. In fact, responding in a negative way can kill the deal permanently. In this type of situation, it is best to put yourself in the buyer’s shoes and respond in a way that you would like to be responded to. For example, you could say, “We greatly appreciate your offer and we would love to work with you. Here is our counter offer”. 

Once you have responded to the buyer it’s time to write a strategic counter offer. Don’t feel pressured to drastically slash the price of your home. If you priced the home well, you don’t want to come up with a counter offer that is actually too low. You don’t have to meet the buyer halfway but it is ok to give up some ground and lower the price as you see fit to show good faith and that you are interested in working out a deal. For example, you could offer the buyer a slight reduction in price such as a $5,000 to $10,000 reduction or a $300,000 to $400,000 home and briefly explain your reasoning for doing so.

After you have sent the buyer a counter offer, you should expect a response with the offer. Agreeing on a purchase price is all about negotiations and finding something that both parties are happy with. Although this process can seem lengthy as the buyer and seller can go back and forth before an agreement is reached, it is important to remain patient and diligent in your efforts. 

As a seller you could also negotiate other terms to make the deal better. For example, you could ask the buyer for fewer contingencies or ask the buyer to increase his or her earnest money deposit. So, although a low offer isn’t the perfect scenario, with a great strategy, you can turn a low offer into a fantastic sale.

If we can be of service to negotiate and navigate how to handle a low offer, give us a call and one of our expert agents will work with you to get the best price possible.