In today’s market, sellers commonly have to deal with the infamous Lowball offer. The best strategy is to keep emotions out of the mix and “consider it” as a starting point for negotiations. Regardless of what kind of offers you receive, you can’t take it personally.
Your motivation is to sell your property and the highest amount the current market will allow for! Start by asking how the offer compares with recent sales. This will assure you are negotiating with realist expectations. Many times a low offer is not an indication of what your property is worth, but rather what the buyer can afford.
Price is not the only way to turn such a situation around in your favor to achieve a successful sale. Try to find wiggle room by negotiating the terms, here are a few questions to ask:
Is the buyer willing to close quickly? The average closing time is 30 to 45 days but it only takes the lawyers an average of 15 business days to finish the due diligence process. A quicker closing can help offset the extra holding cost you would otherwise be paying.
Is the buyer willing to paying closing cost? Normally closing cost are split equally between the buyer and seller and can add up to a total of 5.2% of the finial. This may be a good way to negotiate 2.1% extra.
Is the buyer willing to take the property AS IS? Normally buyers will want to do a walk through and may request repairs or a punch list? Adding a “AS IS” clause to the offer can save you both money and time.
You have nothing to lose if you property has been on the market longer then 6 months and you are not getting a lot of showings. Do whatever you can to keep the negotiations open and the terms in your favor.
With a little teamwork, a conclusion that everyone’s happy with can be obtained.
Contact us if you would like us to help you negotiate the sell of your property.