While most real estate sellers get upset at low ball offers, they may not be getting the true story.
When offers are written then are typically written for less than the “qualification” amount of the home buyer.
There is a “qualification” amount – the top amount that buyer qualifies for.
When those “approval letters” are issued, they are typically in response to each individual offer.
If the buyer qualifies for 850k – and they write an offer for 799k, the pre qualification letter will be at 799k, not 850k.
Even if the home buyer is making multiple offers, they typically have each offer match the offering amount. Not match the sales price of the home.
Some home sellers are not educated by their agent as to what a less than listing price offer means when it’s back up’d with an approval letter matching the amount offered.
It’s not the end of times, it’s a negotiation starting point.
Most buyers don’t offer their bottom line. Even if it’s a sellers market, the home buyers may not offer full price. This is totally dependent on the education of the home buyer and what their “hired guns” are telling them.
It’s simple – Don’t be offended, just respond with the amount and terms you’d agree to.
If you are wanting full price and the buyer offered less than full price, counter with a full price counter offer.
If you don’t like the terms, then counter those terms you don’t like!
Make your real estate agent do it – tell them this is what you want!
Don’t let the buyer’s offer offend you. Let it empower you and cause you to do what is in your best interest. Have your agent issue a counter offer.
If the buyer won’t step up, they may counter at some place in between or not counter at all.
As long as you have your “red line” as far as price wanted in mind, you are golden. Just don’t think that a buyer’s low ball offer on your home is their limit.
That offer is their starting point, not their line in the sand. If you were buying a home you’d not pay full price if the comparable sold properties did not support it would you?
I’m Connor MacIvor and I want to be your real estate agent when you are ready.
Be safe and be sane.