Negotiating A Low Offer On Your Home

We all either have been in the position where we have received an offer on a home that was significantly less than the asking price of our house or fear that someone will make a low offer. But, what do you do if you receive one?

Well, I know the first instincts are to reject the offer. But, I tell my clients it is a great starting point. In this economic times more buyers are trying to find out how much someone needs to sell their house instead of presenting a low; but fair initial offer.

Unfortunately, we all tend not to hear the rest of a offer provisions and conditions once we hear the price...The whole package needs to be considered when looking at an offer. I advise my clients that they need to look at the whole deal. When does the buyer want to close? Are they asking for any money toward closing costs? What type of financing are they trying to get? What monetary out are they asking for on a home inspection? These all play a vital role in the complete offer.

No matter how ridiculous the offer I always advise my sellers to counter offer the buyer. Even if it not an adjustment on the price but some other part of the offer they want negotiated. I always run an updated CMA (market anayisis) for my seller when an offer comes in ( I do it for them every month as a policy) so I can shopw them what the buyer's agent is showing them in regards to the comparable properties out there. This helps in countering back with an offer and understanding where everyone is in the price.

Most importantly, I tell my seller to leave the emotions in the bedroom and come to the negotiation table with the view this is a business descsion... We all tend to let our emotions step in when selling a house because of the sentimental value we have in the home. But, the value you may perceive on a home is not the same as what the buyer may perceive on a home.

When you counter a low ball negotiation you also open the door for dialogue and to see if the buyer is someone serious about purchasing your home or just trying to see if he can get a home for significantly below market value. If you do not counter you will never know if it may lead to a sale......

Dave diCecco
Realtor/Broker
www.davedicecco.com