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What to Do With a Lowball OfferLeave a comment »
We are in a funny real estate market. In some places it's a seller's market with few homes and more buyers. In other places it's a buyer's market with many homes and few buyers. And, again, in some areas it's a balanced market with loads of buyers and much to select from. If the house you decide to make an offer on has been on the market for a while, you might well decide to offer below asking. Will this insult the seller? Maybe yes, maybe no. Read on.....
What to do with lowball offers
By: Dian Hymer
Recently a buyer decided to make an offer on a house that had been on the market for some time. His agent showed him comparable sales information, which indicated that the list price was too high. So, he made a low offer.
The offer price was lower than the seller was willing to accept, so he didn't respond. When the buyer learned that his offer was going nowhere, he asked the seller to give him a counteroffer. The seller did and the buyer accepted. Thirty days later the sale closed.
Another seller was so offended when the buyers' agent presented him with a low offer that he asked the buyers' agent to leave his house. Again, the seller refused to respond to the offer. After many hours of persistent conversation, the seller's agent talked the seller into issuing a counteroffer to the buyers. They accepted and the listing sold.
A seller's reaction to a low offer may be outrage or despair. Some sellers feel insulted by a low offer and want to wait for a better offer, which usually means a higher price. Others feel that countering a low offer is a waste of time.
HOME SELLER TIP: Receiving a low offer is disappointing. But, before rejecting it, try to find out something about the buyers and, particularly why they offered the price they did.
The buyer could be used to negotiating in his line of work. For such a buyer, offering less than the asking price may be nothing more than business as usual. Buyers want to buy at the lowest price possible, just as sellers want the highest price possible. Don't fault a buyer for trying to get a discount, particularly if he's well qualified and sincere in his desire to buy your home.
Buyers often don't know in advance how high they'll be willing to go in order to get the home they want. Sellers may not know their bottom line until they get into the negotiations. Even if a buyer says he won't go higher than a certain price, he may be willing to pay a little more if it makes the difference between putting the deal together and no deal at all.
You may discover that the buyer offered a low price because he thinks your home is listed too high. If so, find out what comparable sales he's using to support his price opinion. Out-of-area buyers and agents may not be up on current market value. In this case, provide comparables sales information that validates your price.
If the buyer's comparables are the same as yours, one of you needs a reality check. Sellers can let pride of ownership get in the way of making a rational decision about selling their home. The better price you dream of may not be forthcoming. Buyers tend to offer less for listings that have been on the market for sometime. Keep an open mind to any offer from a well-qualified buyer.
Most sellers focus on price, sometimes overlooking other terms of the offer that could be negotiated to their advantage. For instance, let's say you're closing on a new home in a few weeks and want to avoid paying for interim financing. It might be advantageous to accept a lower price on the home you're selling provided the buyer agrees to a quick close.
THE CLOSING: Before countering any offer, make sure the buyer is qualified. If the buyer isn't already preapproved, include a provision in your counteroffer that requires the buyer to be preapproved within a day or two.
Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.
Copyright 2003 Dian Hymer
Distributed by Inman News Features
http://www.wilkasgroup.com/006FE8 Posted on December 24, 2008 20:54:50 by Lenore Wilkas
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24 Jenna Lane Virtual TourPosted on June 02, 2008 11:33:59 by Lenore Wilkas
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Welcome to Half Moon Bay and 24 Jenna Lane, Your Own RetreatHalf Moon Bay is one of the oldest towns on the Peninsula of San Francisco. Originally used as a grazing area for cattle and horses by the Mission San Francisco de Asis as early as 1776. Land grants were given to Spanish settlers in the early nineteenth century where farms and ranches were established. In the mid-1800's, Half Moon Bay was the first real town in San Mateo County and was then known as San Benito, and then renamed Spanishtown. Even at that time, Spanishtown was a thriving fishing community and it was a regular stagecoach stop. The town wasn't renamed Half Moon Bay until 1874. Half Moon Bay grew very slowly and didn't really begin to grow until after WWII. Today, about 12,000 people call it home. It is a commuter town for most residents with them travelling over highway 92 to 280 where they go north towards San Francisco, or south towards Silicon Valley, or continue on to San Mateo and 101. Today, we still see architecture from the late 1800's reflecting the history of this beautiful community! 24 Jenna Lane is a short walk from downtown.
http://www.wilkasgroup.com/003706 Posted on June 01, 2008 06:33:44 by Lenore Wilkas
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24 Jenna Lane, Half Moon Bay, Features a Formal Living Room or StudyThe Formal Living Room entrance features glass French doors allowing this large room to be used either as a Living Room or Study. The beautiful fireplace set off in the corner, windows of the garden and Pillar Point and beautiful hardwood floors allow for a versatile space.
http://www.wilkasgroup.com/003744 Posted on May 28, 2008 21:26:53 by Lenore Wilkas
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24 Jenna Lane, Half Moon Bay, A Family Compound With Guest CottageThe Guest Cottage sitting across from the main house provides a quiet retreat for family or guests while visiting your estate on the San Mateo County coast. Featuring it's own private one-car garage, Living Room, Dining Area and Kitchenette, large Bedroom and Bath with Limestone covering floors, tub surround and counter.
http://www.wilkasgroup.com/003745 Posted on May 28, 2008 20:39:09 by Lenore Wilkas
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