The time has come to sell your home and you thought the full-price offers would come pouring in the moment it hit the market. However, that’s not always the case when selling your home in Central Florida. Sometimes you will be presented with what’s known as a lowball offer, or an offer way below your asking price. When met with this dilemma, you may feel like you should dismiss the offer right away. However, there are a few things you should consider prior to rejecting a lowball offer.
Is this offer really that low or are you priced too high?
A lowball offer may feel like the wind has been taken out of your sails. Your home is worth so much more than that, right? If you receive more than one lowball offer before you receive what you consider a reasonable offer, your home may be priced too high. Maybe after reviewing comparable properties with your agent during the listing process you thought it would be a good idea to go in a little higher than other homes listed and sold in your area. Now would be the time to take a hard look at what your property has to offer in relation to other homes. This can be difficult as it is your home – it's special to you. But remember, the buyer’s first offer isn’t necessarily their bottom line.
What contingencies are involved?
Although the initial offer price is lower than you expected, remember to look at the whole offer. If, on top of the lowball price, the buyer is also requesting contingencies, such as a portion of closing costs and pre-paids or a home warranty, this is a time to think about what you really hope to gain out of selling your home. On the other hand, if the offer is holding no contingencies, is set to close on your preferred closing date, etc., it may be something to take seriously.
Have other offers been rolling in?
You may not pay much mind to an offer that is considerably lower than expected if you have other offers that are closer to your listing price. But if you haven’t received other offers and your home has been on the market for a few weeks, you may want to ask yourself why. Looking back at your initial listing price, it may be time to reevaluate and adjust your price to make your home look more appealing to potential buyers.
Should you be willing to negotiate?
Remember, your goal is to sell your home at the highest possible price. Although receiving a lowball offer may seem offensive, you have to remember the buyer’s goal is to buy a home at the lowest possible price. Don’t lose heart and try not to get frustrated... when you have a skilled negotiator on your side, your Realtor®️ will know how to manage this process. Oftentimes, it’s smart to at least make a counter offer before just declining an offer you deem to be too low. When you counter with a price that you are willing to accept, just know this can become a tennis match, but it’s truly up to you how long the negotiation process will last.
Nothing says you have to accept a lowball offer. Take into account the questions above and how they relate to your scenario. Being the homeowner, the ball is in your court!