Our Top Three Tips When Dealing with Low Ball Offers
Today’s topic is dealing with low ball offers. We are going to go over our top three tips when dealing with a low ball offer here in Vancouver real estate and in all markets. This is happening as the market as gotten a little slower, well it should be happening anyways. So here we have our top three tips to help me get through it.
Lowball tip number one:
Most importantly, this is a rule for pretty much anything in real estate. Keep your emotions out of it. Make sure you don’t get your back up against the wall. You want to keep your emotions out of it, so you can negotiate with a clear head and that is a good place to be in. The end result, if you do that, is going to be much better for you. I can almost guarantee that you are going to come up with more money if you don’t get your back up against the wall and let your emotions run the show. You don’t want to get angry, or upset at the buyers. You want to keep it cordial as best you can. So keep your emotions out of it!
Tip number two is to confirm it is in fact a low ball offer. I know this is going to be hard to hear for a lot of people selling out there, but just because it’s under your asking price or just because it’s the price you don’t want doesn’t mean it’s a low ball offer. Again, that’s going to help you keep your emotions out of it. If you do look at the numbers and go, oh maybe it’s not as low as a I thought it was or whatever the case may be. Or I know it’s not what I want, but I understand why they’ve made that offer.
If you’ve been on the market for two, three, four months, has the market changed? Have sales in the market gone down? What are the sales looking like? Have they stayed the same? Who priced your home? Did your realtor price your home, or did you decide on the sale price? Those are all very crucial factors in determining if the offer, even though below your asking price is actually a low ball offer or not. You must confirm that. That’ll change everything for you because you will be able to respond to them and have a nice counter off for them at the end of the day.
Tip number three is sort of a two tier one. To respond in a timely manner. If someone sends you an offer, typically we are seeing them open until the end of the day or let’s say within 24 hours. There’s no way you can’t respond to them within 24 hours. Even if you didn’t listen to number one and you’re a little bit emotional about it, you still have 24 hours to cool off.
Think about it, look over the numbers, confirm it is a low ball offer and then respond to them. If you let it expire, the buyers are going to get emotional and then you’ve got two sides that are angry at each other. Then negotiations will never go anywhere. So you just want to keep it cordial, get back to them when you said you would get back to them. Do so as fast as you can because you really want to pounce when the iron is hot. If it’s not a price you love, but they’ve made an offer, it’s still probably a lot of money for them, so obviously they want it. You want to get them an answer quickly so that they can stay interested in it. You don’t want to lose interest or turn them off because you were discounting their offer so you didn’t respond in a timely manner.
I recommend to be ready to negotiate. There’s going to be a lot of back and forth, it’s going to be a little bit stressful. That’s how real estate works. So be ready to negotiate and respond in a timely manner.
That pretty much sums it up. Our top three tips for dealing with lowball offers: always keep emotions out of everything. That’s tip number one. Tip number two is to confirm if it is in fact a low ball offer, and tip number three, respond in a timely manner or within the time frame that they’ve asked you to. Unless it’s something that’s absurd, of course, and then just be ready to negotiate. There’s going to be back and forth in this market and you’re just going to have to be ready. Do not get your back up against the wall. Be ready to do a little back and forth to get to the price that you want.
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