How to Evaluate a Low Offer

No one appreciates a low offer on their home.  The first impulse is to reject it outright.  Whenever you receive an offer it is essential that you evaluate it properly and not simply give an emotional response.  Here are some items to consider before responding to a low offer:

Buyer’s True Intentions

Most Buyers don’t make a low offer with the purpose of getting you upset.  There is nothing to be gained by that.  Is the Buyer seriously interested in your house, but not able to pay more?  Maybe the Buyer will pay more but wants to see how motivated you are to sell the property.

Maybe the Buyer is only interested if they can ‘steal’ the house.  Some Buyers get advice from family or friends about negotiating that is wrong and does not reflect the desire of the Buyer to buy your home.  So, a low offer does not indicate anything.

Future Offers

Is it likely you will receive other offers in the near future? Some Sellers who get an offer immediately after listing the house aren’t very flexible because they think there are other offers just around the corner. 

This may or may not be your situation.  When evaluating a low offer, you should also think about the possibility of other offers.  Also bear in mind, that the first offer you receive is usually from your most motivated Buyer.

Your Needs

What are your needs and how does this offer address your needs?  Sometimes a low offer is hard to accept, but it may help you get out of this situation and move on with your life.

Advice

As painful as a low offer may be, don’t immediately write it off.  Listen to your agent’s advice.  Your agent will know the market and will have a feel for whether a better offer might be around the corner.  They can often negotiate the offer up to a level that you will find acceptable. 

Michelle J. Lane

MICHELLE J. LANE, Realtor, Luxury Specialist
Berkshire Hathaway HomeServices Commonwealth
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CELL: 617 584-3904
www.MichelleLaneRealtor.com
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