Tuesday, March 4, 2014 - Article by: Joe Metzler, MLO. NMLS #274132 - Mortgages Unlimited, Inc -
When selling your home, there is a good chance you'll get a low ball offer.
Before you blow a gasket with a an outright rejection, take a deep breath and understand why.
First, it almost without fail has noting to do with your home, its condition, or your asking price. It simply has everything to do with buyers thinking it is still 2009. Thinking you are a desperate seller, that they can low ball offer, and that you'll accept the offer.
Buyers believe it is always worth trying a low ball offer. The reality is a real estate agent has priced your home correctly, and that almost all homes sell today within just a few thousand dollars (up or down) from the asking price. Remember that receiving a written offer means that there is a buyer who is seriously interested in purchasing your home.
By holding your emotions in check, and responding with a counter offer, you may well turn that low price offer into a sale. You, with help of your agent, just need to move forward with a bit of strategic negotiation. Your goal is to sell the house, and sell it at your asking price. Their goal is to buy your home at the lowest possible price. Put your emotions away. It is a business transaction. By simply keeping negotiation alive with a counter-offer you'll almost always sell the house at a number comfortable for both buyer and seller. Every situation is different, but, in most cases, the best negotiation strategy is to determine a price and terms that you are willingly to accept and respond accordingly.
This may mean lowering your price and removing any seller concessions (such as paying closing costs) or it may mean sticking to your asking price, but giving in on a few of the buyer's requests (such as leaving behind the appliances). As a MN and WI based Mortgage Loan officer, I see that many of my buyers NEED the seller to pay closing costs.
This term is very misleading, and many sellers are annoyed at paying the buyers closing costs. But remember, you are NOT really paying their closing costs. It is simply a way for the buyer to roll the costs into the loan. FOCUS on your bottom line, and don't be concerned about paying the buyers closing costs.
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