I read this blog about offers and counter offers by Dan Jasner, a REALTOR in Longboat Key, FL, and had to say it’s excellent. I always, always advise my sellers to respond to an offer, even if you find it insultingly low.
It’s a business transaction. The buyer is trying to get the best deal he or she can. The seller is trying to get the best price possible. The job of the real estate agents is to facilitate the achievement of the mutual goals of both buyers and sellers.
But we can’t do that if communication is shot dead by a refusal to respond to what is considered a lowball offer.
Some sellers say “If the buyer seriously wants this house, he will make a serious offer.” True – but who decides what is serious? Many buyers are afraid of “paying too much.” Their thoughts are “Why offer more than the seller’s bottom line?” They don’t know the bottom line until they ask…so they start with a low offer and go from there.
I have had one situation where the buyer offered $50,000 below the list price of one of my listings. He was taking the seller’s temperature. He had more than enough money to pay full price for the home but he was fishing for a deal. Eventually he ended up making a full price offer but the seller was fickle and decided that the home was worth keeping, after all, and refused to sell! But my point is – the offer started low but quickly escalated to exactly what the seller wanted for a sale price. Too bad the seller got cold feet!
My favorite part of Dan’s blog is this:
Your strategy is that if you do not counter, the buyer will come back with a better offer in a few days. What!? This is like catching and releasing a fish where there are other fishermen around you and hoping the fish decides to come back to you because you think you have better bait on your hook.
Why would you take a chance at losing an interested buyer when there is a lot of inventory for them to choose from? Chances are there’s another home out there that could work for them. You may have a special home unlike any others on the market. If priced properly, maybe holding out is the right thing to do, but that is a big risk to take. Make sure holding out for a better offer is worth the risk.
Please, do not shoot your negotiations in the foot by refusing to counter. You are only hurting your own chances of a sale!
Here are some Wayne and Pike County homes that are looking for offers, including some AWESOME waterfront properties – if you’d like to make an offer give me a call and we’ll get the ball rolling! 🙂