Low Ball Offers

In each real estate market, there are buyers who make offers that are far from the current market value. How should you react if your Realtor® brings you one of these "low balls"?

If your home is priced well in a sellers' market, you can reject the buyer's offer and be pretty confident that a better one will come soon. However, in a buyers' market you may not have that luxury. Try to get a handle on the buyer's overall strategy, and ask your Realtor® for advice. Do they really want your house or will they move on to another property/house if you make a counter offer? Can they afford to pay a higher price (this is not always difficult to find out)? Are there ways to close the gap with a small owner carry-back, or with terms that will increase your bottom line? It may be necessary to take a close-hard look at your asking price. If your price is on the high end, the offer may not be that unreasonable. I would caution you against rejecting a low offer until you have explored all the options.

Everyone's situation is different, and only you truly know what you can afford to do. Speak openly and candidly with your Realtor® about your options.