Fridays with the Fiddle Fig: What To Do With a Low Ball Offer
This week's topic: What do I do with a low ball offer?
This can bring on some anger and annoyance but a low ball offer can actually be pretty valuable.
First off, it's still an offer. And that gives us something to work with. Even with a low ball offer it can still often be negotiated up to a more reasonable price that both parties are happy with. For example, it's the holidays maybe and a house has been on the market for a while and the buyers decide it's time for them to finally write an offer. It's probably not going to be a very solid offer but, since the buyers have been watching the property for a while, that means they still really like and want the house. In this case, they put in a low offer but it is likely they will be willing to come up a little bit in order to still get the house.
Any offer, even a low one, will help everyone start honing in on what the true value of the house is. We can have all the data in the world on the potential price of a house but what most accurately determines the price is how much a buyer is willing to pay for it.
A low offer is still an offer. It gives your agent the opportunity to contact any previously interested parties to let them know that an offer has been made. From my experience, I've found that interest tends to breed interest. We have a house in escrow right now that was on the market for three months with no offer. We finally got one offer and then 24 hours later two more offers came in. That drastically changed the situation for my sellers.
If you don't have an offer, there isn't much you can do about it. Getting a low offer at least gives you a stepping stone for somewhere to go with it. Stay positive and let your agent get to work on it.