In every home sale, more often than not, the seller's goal is to get the highest value for their home that they can. Buyers, of course, would be overjoyed to to get their dream home for a steal. Which brings us to the temptation and reality of the low-ball offer. Everyone's offer and negotiation strategy is unique, and initial offers should be considered starting points. That said, when a seller receives an offer far below the list price their reaction can be a knee-jerk answer of "No way! What were they thinking?" Sometimes they even get angry or become offended. However, if you take a moment to think it through, that low offer can be a very valuable tool for you and lead to a good sale. Here are 5 reasons why we value the low offer:
1. Focus
All offers - any offer - will make sellers think harder about what they really want from an offer. Is price the only determinant? Do you need more time to pack or are you ready to be out next week? Focus is good.
2. Everything is Negotiable
Low offers are often negotiated up. We have had a super-low offer (35% off the asking price) close within 5% of the asking price
3. A Tool to Motivate
A low offer is still an offer. It allows you to message to other prospective buyers that there is serious interest. Often the one thing markets miss most is a sense of urgency: knowing you may lose a property is the single most important driver of decision making.
4. Know Your Value
Numerous low offers may message that the property is over priced. An offer - even a low offer - may give you a better insight into the true value of your property.
5. Find the Best
Receiving multiple offers, even if they are low, give you the option to ask for the buyers' best and highest bid - auction-style - which may be the ultimate way for the market to let you know what the market is willing to pay.
: : So next time you receive a low offer, don't fret. Strategize. Talk with your agent and any partners to use that low offer to work towards making a deal.
