What to Do About Those Low Ball Offers

So you put your home on the market, set it with what you know to be a fair and reasonable price, and then along comes an outrageous low ball offer that knocks you off your feet. Stumped on what to do? Don’t immediately discount low ball offers without considering the following points.

Low Offers Happen

Low and outrageously low offers happen in real estate. It’s a known fact among Realtors. Try not to get upset about it. There are two market conditions that may cause you to receive a low ball offer: A Buyer’s Market or a Seller’s Market.

Buyer’s Market

Like the title suggests, the Buyer is King/Queen when market conditions lean heavily in favor of the Buyer as they do from time to time. Today, parts of Brunswick County are still experiencing a Buyer’s Market. That can in part be traced to the meltdown of our economy in 2008. Yes, nine years later we continue to feel the effects of that devastating downturn.

Affects of Selling in a Buyer’s Market

Here are a few tips if you are considering selling a home, condo, homesite or townhome in a Buyer’s Market:

  • Keep up with the current market conditions where you live. We can help you with that.
  • If you have a homesite to sell and there are over 100 homesites on the market in your community, you might have to wait 3-4 years before you receive an offer based upon demand.
  • When your community is saturated with home sites it could mean 3-4 more years of HOA fees and taxes (carrying costs), which could easily equal $1,000 – $2,000 annually or, up to $8,000 over the next four years out of your pocket.
  • In these types of conditions it’s not unusual for a buyer to make a low ball offer. They are attempting to determine the urgency of a seller.
  • A Seller should never be offended by an offer they receive in a Buyer’s Market. Period.
  • Counter all offers because 75{273583cfc581702b9b29d53e7767e779614a2427f9fcf163ae51dfa4952ef47e} of low ball offers eventually become acceptable offers to both parties (at Carolina Plantations) – provided you have a Buyer’s Agent and Seller’s Agent that know how to properly negotiate transactions.

Affects of Selling in a Seller’s Market

  • Comparables or Comps are your #1 key to selling a home for a fair price in a Seller’s Market.
  • You must research the area for a solid, experienced and knowledgeable Realtor, like we have at Carolina Plantations, who can provide you with the latest current trends and uptodate selling prices in your immediate area.
  • If real estate is priced and marketed properly in a Seller’s market, you could receive an offer within a day or 2 weeks. If it is more than 3-4 months before you receive an offer, than there is a good chance your home is overpriced.
  • If you receive a low ball offer in a Seller’s Market, you should still consider making a counter offer, even if it is only $1,000 off your asking price.

Regardless of the type of market it is when you list your property, it’s important to keep your emotions in check when negotiating offers. Our Realtors will be by your side to assist you through all the steps involved in selling your real estate. Take our suggestions and recommendations seriously.

We know real estate well — our agents live and breathe it every day. We want you to get as much for your property as you possibly can and have a fast and smooth transition. So know that when you don’t take our advice it could result in a property staying on the market much longer than you’d hoped.

The relationship you forge with a Carolina Plantations Realtor is important. You can count on us to work on your behalf 24/7. Give us a call today and let’s discuss how to set your home price right, regardless of the market.

 

6 Things Not to Say When Selling a Home

This is something every home seller should hear. Home sellers need to watch what they say to buyers and to their real estate agents. Real estate professionals recently told Realtor.com® some things they believe sellers should never say:

Things Not To Say When Selling a Home

1. “Our house is in perfect condition.”
“The home inspection may reveal otherwise, and, as a seller, you don’t want to wind up putting your foot in your mouth,” says Cara Ameer, a real estate professional that spoke with Realtor.com®. “There simply is no such thing as ‘perfect condition.’ Every house, whether it is brand new or a resale, has something that needs to be fixed, adjusted, replaced, or improved upon.”

2. “We’ve never had a problem with …”
Sellers need to be careful to not tell any fibs or embellish anything, even when those appear seemingly small. “You’re setting yourself up for potential liability,” Ameer says. “You may not even be aware of the problem at first, but it could translate into an embarrassing moment upon inspection.” Let the home inspector’s report speak for your home.

family looking for a home

3. “It’s been on the market for X number of weeks/months/years.”
Sellers should never mention to potential buyers how long their home has been on the market, says Pam Santoro, another real estate professional. The information is available on the home’s information sheet for buyers to see for themselves. Sellers who wish to highlight this may find that buyers think they can get the home for less because it’s been on the market longer. Other buyers will wonder what’s wrong with the home that it has been sitting for so long.

4. “We spent a ton of money on X, Y, and Z.”
Sellers shouldn’t think that just because they spent a lot of money on recent upgrades to the home that they will get that back and more when they sell. “The buyer doesn’t care whether you spent $10,000 or $100,000 on your kitchen,” says Ameer. “They are only going to offer what they feel the home is worth in relation to comparable sales in the area.”

Don't talk about renovations

5. “We always hoped to fix/renovate that…"
Mentioning things you thought about updating or renovating just makes the buyer think they’re not perfect as they are. They may perceive this to mean the house will be costing them even more money down the road.

6. “I’m not taking less than X amount for my home.”
“If you send a message that you are inflexible or not open to negotiating, it may not invite buyers to even try to work out acceptable price and terms as they will feel defeated from the start,” says Ameer. “Word may spread that you have this sentiment as a seller, and people may start to avoid the house.”

Source: “6 Things You Should Never Say When You’re Selling Your Home,” realtor.com®