How to handle low ball offer

[vmay]

Tomorrow I need to counter an offer of 560K on asking price of 629K. Property has been on market for 4 months. Few buyers in the area. This is last IP so its not that I can pick up any losses in next deal. I am motivated to sell but having trouble working out my bottom price.

I was thinking of countering at 620. Any thoughts?

 

[superAndrew]

Is your property priced correctly at $629k?

If it is then I wouldn't respond with a counter offer but just reply that their offer is out of your negotiation range. If they are really interested in the property they will bring it up.

It all depends if your happy with the profit you will make at that price and how motivated you are to sell.

Andrew

 

[see_change]

Your bottom line needs to be worked out by what you need from it or by what you want from it .

How much does it owe you ?

Do you need to or just want to sell ?

Do you want to do something else once you sell ?

Can you hold on if you don't sell ?

I know you may not want to go into specifics but some more details on price movements recently and longer term might be more helpful , even a general idea .

BTW I'm not sure I'd call that offer a low ball offer on a property that's been on the market for 4 months with few interested parties. There are many members who would be coming in a lot lower than that given the " Short story "

Cliff

 

[vmay]

Thanks for input....
the longer story........I was confident that the property was well priced for the area but also aware that there were few buyers.

I was keen to sell for health reasons.

My father died at the 60 day mark......I dropped the price to from 649 to 629 and then was to overwhelmed by emotion and family issues to do much else.

Given how I feel at the moment it is tempting to just sell to relieve stress.
I would be losing money on existing offer but covering debt.

Not sure if this makes it any clearer....

 

[DaveM]

As above, "the offer is too far off the mark that we do not have a counter offer at this time"

Leave it to buyer to adjust

 

[Big Will]

I would reject the offer unless the property has been that highly overpriced... Are you getting people through the open house? Maybe try a different pricing strategy like $590,000+ or $570,000+ and see what interest you get. Once you get 2 or more parties interested makes it a lot easier to negotiate.

 

[wylie]

My father died at the 60 day mark......I dropped the price to from 649 to 629 and then was to overwhelmed by emotion and family issues to do much else.

Given how I feel at the moment it is tempting to just sell to relieve stress.
I would be losing money on existing offer but covering debt.

Not sure if this makes it any clearer....

I'm very sorry to hear about your father and can understand the need to just dump any more stress than you are already dealing with.

But if you are not desperate to sell, I'd do as others have said and just hold on a bit longer. If it is really too stressful, do what you have to do to move forward.

 

[bigvman]

I agree with Big Will. It's your house and you don't have to accept any old offer.
However, if I was the purchaser i would think an offer of 560 is getting pretty close enough to be treated with due consideration.

If you really want to sell then counter with 620. If you've no real need then simply reject and advise you need something more realistic.

Given the situation with your father's passing there's no right or wrong, only what you decide is right for you. As the other posters have advise go back and work out what the property is worth to you and what your cutoff price would be. Try not to be forced into making a decision based just on how you feel.

Best wishes,

Dwight

 

[tobe]

I disagree with the previous posters, I would definately give them a counter offer, even if its your listing price.


Imagine if you were ina bazaar and the shop keeper ignored you, would you keep trying, or move to the next stall?

I see it with lots of buyers through my work, they expect a counter offer, dont receive one, and move onto the next place instead of offering again. Negotiation is communication.

 

[Big Will]

I disagree with the previous posters, I would definately give them a counter offer, even if its your listing price.


Imagine if you were ina bazaar and the shop keeper ignored you, would you keep trying, or move to the next stall?

I see it with lots of buyers through my work, they expect a counter offer, dont receive one, and move onto the next place instead of offering again. Negotiation is communication.

Never said anything about not communicating but rejecting it is what I would be doing. Yes you can go back with your list price or just go back with happy to negotiate but the purchaser has to been reasonable and I am not going to accommodate someone who is unreasonable. If they are offering 560k why do they think that, is there a comparable property or are they comparing another property 5kms further away from the city?

 

[BayView]

If I was in no particular hurry to sell, my counter would be $620k.

This is a bit of drop, but not too much, and lets the buyer know (without actually saying it) that you won't be mucking around too much with low-ballers and are going to be sticking pretty close to your guns.

You might want to inform the agent to tell prospective LB-ers not to bother wasting everyone's time if the offers are below say; $610k etc.

 

[see_change]

Never said anything about not communicating but rejecting it is what I would be doing. Yes you can go back with your list price or just go back with happy to negotiate but the purchaser has to been reasonable and I am not going to accommodate someone who is unreasonable. If they are offering 560k why do they think that, is there a comparable property or are they comparing another property 5kms further away from the city?

It's not necessarily a question of comparables . It's a matter of what people will accept .

Cliff

 

[tobe]

Never said anything about not communicating but rejecting it is what I would be doing. Yes you can go back with your list price or just go back with happy to negotiate but the purchaser has to been reasonable and I am not going to accommodate someone who is unreasonable. If they are offering 560k why do they think that, is there a comparable property or are they comparing another property 5kms further away from the city?

so you give the estate agent a message to communicate back to the buyer?

the formal way of communicating in such an instance is on the contract of sale. If it aint in writing, on the contract of sale, with your signature, to the buyer its just more guff and hot air from the estate agent.

Put yourself in the buyers shoes, where are you more likely to counter offer/offer again, when the estate agent comes back and tells you this offer is rejected, but would be happy to consider offers closer?

Or when a counter offer, in writing, and signed by the vendor comes back to you?

It doesnt happen as much anymore, but years ago, it was extremely rare to get a contract of sale that wasnt crossed out and initialed at least twice. I guess it must be estate agents who didnt like conveying offers around all the time....

 

[vmay]

If I was in no particular hurry to sell, my counter would be $620k.

This is a bit of drop, but not too much, and lets the buyer know (without actually saying it) that you won't be mucking around too much with low-ballers and are going to be sticking pretty close to your guns.

You might want to inform the agent to tell prospective LB-ers not to bother wasting everyone's time if the offers are below say; $610k etc.

Thanks for input everyone. I went back with $620K in writing on Monday. Today (Fri) I have been told that I will hear back next week and that the purchaser does not see value over $600K. After a buyer meeting with the broker I most likely get final offer on Monday or Tuesday.

Though its been annoying to wait it has given me a bit more time to think things through.

 

[zimby]

so you give the estate agent a message to communicate back to the buyer?

the formal way of communicating in such an instance is on the contract of sale. If it aint in writing, on the contract of sale, with your signature, to the buyer its just more guff and hot air from the estate agent.

Put yourself in the buyers shoes, where are you more likely to counter offer/offer again, when the estate agent comes back and tells you this offer is rejected, but would be happy to consider offers closer?

Or when a counter offer, in writing, and signed by the vendor comes back to you?

It doesnt happen as much anymore, but years ago, it was extremely rare to get a contract of sale that wasnt crossed out and initialed at least twice. I guess it must be estate agents who didnt like conveying offers around all the time....

It gets very old when you have to scan and send documents backward and forward multiple times, to add too this quality of the document is degraded and likelihood for errors increase.

 

[WattleIdo]

Get rid of it or take it off the market 'til later.

You don't need this stress now. Hope the buyer comes back with a decent price.

xx

 

[Scott No Mates]

Thanks for input everyone. I went back with $620K in writing on Monday. Today (Fri) I have been told that I will hear back next week and that the purchaser does not see value over $600K. After a buyer meeting with the broker I most likely get final offer on Monday or Tuesday.

Though its been annoying to wait it has given me a bit more time to think things through.

I have had one where the buyers couldn't see value at 3 times that amount but go over the line up 20% on the offer (& an independent val). If they want it make the agent do their job.

 

[vmay]

Offer finally came back yesterday at $580K then a few hours later was withdrawn. Don't think this buyer was a serious candidate......and now I have to decide whether to rent it or stay the course. Even rental market is depressed at present. Just one o those times.

 

[baby blue eyes]

They may be playing games still

 

[marks]

Do you still have the contract with $620k as your figure.
I'd leave it with the REA and just say that you've signed $620k already. If the buyer comes back all he has to do is sign for a completed contract.
You don't have to worry any further and just get the REA to look for the next buyer.

If you drop any further, the REA is going to think you are going to have a lower price point. The REA will "manage" the vendor or buyer who gives up more.
By setting your price, he will go and "manage" the buyer instead.

Good luck.