What to Disclose When Selling: The Importance of Honesty and Transparency
Posted on June 18, 2019
You have an offer! Your heart skips a beat and the weight of the world comes off you for just a moment. You sit down at your dining room table to go over the details.
Then, your Realtor starts to go over the details with you. With each word, you feel more and more dejected. Once the whole offer is outlined, only then do you get mad. How dare they! They want what? For how much?
Low ball offers are upsetting, especially when you expected an increasing property value over time.
Why Low Ball or Lots of Strings Attached Offers Happen
There are several reasons you may have this upsetting offer in front of you. Some of them you can do something about, and some you can’t.
- Investors look to purchase properties at low prices. They may be looking to resell the house, or rent it out. Either way, they have no emotional attachment, so the price is all that matters to them.
- Some Realtors have made it their style to start negotiations with a low offer. So, they seem to think that beginning with a low number makes it more likely their client will be able to buy at a lower price. We have seen no evidence this works, but we have seen it happen.
- Sometimes buyers are hesitant to make an offer, so their Realtor encourages them to make any offer. The hope is that with some negotiations, the buyers will become more invested in the process. This does sometimes work.
- Buyers fear leaving money on the table. They are concerned they will pay too much. This is often a sign they don’t trust their Realtor’s advice, but it may just be their personal style.
- Your listing or the property may give the impression you are desperate for a sale. If the listing says you are a motivated seller, or if the house is vacant, you become a target.
How to Respond to Low Ball Offers
Chill. Yes, that’s the first step. As you see from the above list, most reasons for low ball offers are not about you, or your property. So, chill. Relax. Take a breath. When you’re ready for the next step, we’ll guide you through the process.
Send Back Your Counter Offer or Don’t
After a breather, consider making a counteroffer. Look at both the price and the terms and see what you are willing to accept. Lowering your price, at least a bit, is a signal you are willing to negotiate. Other terms, like the closing date or included items like appliances, can change, too.
Check out the buyer’s other options in the area. If they don’t buy your house they will probably buy something very similar nearby. What else is for sale? How does your place compare?
This is Why We’re Here
Selling your property is a stressful time. Low ball offers and offers with many strings attached add to that stress. Here at Real Estate Reimagined, we help you through the maze. This is a major life event for you, and you want the right help when navigating these tricky scenarios. You can rely on us to help you make the right decisions as you counter low ball offers.
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“Louis sold our condo in less then a month. Supplied us with home staging. He also helped us with many offers from the same buyer. We got what we were asking for. Louis and Jordan are great guys! They make selling and buying homes a great experience. Looking forward to our next adventure.