When Should I Respond to Lowball Offer
Receiving an offer for your home can stir many emotions. When sellers are presented with a “lowball” offer negative emotions usually take over. (A lowball offer is an offer that is less than the list price by 15% or more). The most common response for sellers who get a “lowball” offer is to not respond or counter. However, this is a mistake. But before we answer why I believe it is a mistake I want to share the 3 main reasons a seller will receive a “lowball” offer.
How your home is presented matters. Does it have curb appeal? Is the home messy? Are there visible damages? These are just a handful of things that can trigger a buyer to make an offer that is unexpected or off the mark.
Nothing hurts the ability to get your home sold more than pricing your home too high. It keeps buyers away and reduces the number of showings. Without buyers walking in to see your home it will take longer to get the home sold, therefore increasing days on market and the likelihood of a lowball offer.
The 2 reasons above are the most common contributors to why sellers receive a lowball offer on their home. Sure, other reasons such as market conditions can play a role but the above 2 reasons can help remove market condition related issues from the sale of your home.
Always Respond to Lowball Offers
While I understand why sellers are reluctant towards responding to low offers, not countering an offer works against them. Hear me out here. The buyer made an offer and an offer, even a low one, is better than no offer. The same way the buyer does not know a seller's bottom line, the seller doesn’t know the buyer's top number. A counteroffer creates dialogue, and dialogue is needed in all negotiations.
Another reason I feel a response is warranted after a lowball offer is that your list price is too high or maybe your home is at a point where major repairs are needed. These items influence a buyers offer. I again stress here to counter the buyer's offer and start a dialogue. You never know what you may find.