There is a long-held belief that no matter what the buyer says, if the seller accepts the first offer, then it probably wasn’t the best offer. With low sell or offer prices like that, it is often true. However, the way to make sure you get the best offer isn’t to turn down the first one.
Understanding low ballers can help both buyers and sellers make smart decisions when it comes to offers and sales prices. Learning everything about the low baller mindset will help you know when to act and what to expect.
Who Uses Low Balling
Those who use low balling could be a real estate investor looking to make a profit on the sale, or a savvy first-time homebuyer hoping for a good deal. Low ballers understand the basic dynamics of the market, know how to haggle and are usually quite savvy when it comes to researching the market.
As a seller, it’s important to understand that low ballers may have a valid point worth considering, since they may have the budget or capacity to make substantial improvements that add value to the property.
Identifying the Characteristics of Low Ballers
Low ballers are typically identified by their continual use of tactics. It could be through requesting extras, closing costs, repair costs, or a below-market value offer. Low ballers are attempting to save money by making the offer lower than what they can afford.
To do this, they’ll come up with different angles such as making the offer contingent on certain conditions being met. They could also use tactics that make it difficult for the seller to turn down the offer. Agents must be careful to recognize the underlying truth of the situation, yet remain respectful of the client’s goals.
What Makes Low Ballers Tick
To better understand a low ball offer on house, one must first understand what makes them tick. Low ballers simply want to exploit a seller’s sense of urgency or lack of alternative offers to get a deal. In others, they may be trying to turn a quick profit or avoid making an additional investment to fix up a property with minimal repairs.
They may believe they have more leverage to negotiate a lower price due to a home’s weaknesses. Being aware of such factors can help sellers to be firm on no low ball offers.
How To Respond To a Lowball Offer
When responding to a lowball offer, sellers should try to understand the underlying reasons behind the offer. They should also explain their rationale for not accepting it. Sellers should be willing to negotiate, but should not feel pressured to accept any offer that would result in financial losses or any other undesired outcome.
Sellers should respect the buyers’ wishes and try to reach a reasonable. Both parties should have a mutual agreement and both must feel good about the offer. Here are some tips on how to counter or decline a lowball offer.
Make Your Lowest Counter-Offer First
It is important to stay firm and make offers around the asking price when possible. By starting strong and remaining firm, you can remain competitive in negotiations. Keeping a level head during the process will help you make the smartest decision without sacrificing too much in the way of cost savings.
Require New Offers Rather Than Editable Counters
It is important to require new offers rather than editable counters from the low ballers. By doing so, sellers are more likely to get better offers, as buyers are more likely to submit offers closer to the property’s value when know their counteroffer may be rejected.
Let Your Agent Handle Negotiations
Although accepting a low ball house offer can be tempting, it’s always best to let your agent handle negotiations on your behalf. Your agent is more familiar with the industry and can better help you understand the mindset and approach of a low baller and guide you through the negotiation process.
By having your agent negotiate on your behalf, you can have peace of mind in knowing that you have a professional on your side who can work to ensure a fair and reasonable outcome.
Alternative Strategies for Selling to Low Ballers
Although understanding their mindset and rejecting offers when it’s necessary is a great starting point, real estate professionals should also consider alternative strategies when dealing with low ballers. These strategies include discussing the seller’s time frame for selling, looking into the value of the property, and suggesting changes to the current listing.
By taking these extra steps, brokers and agents can help the seller understand the offer they are getting. Utilizing creative strategies such as seller financing and multi-offer systems can help to close a deal that works for both parties. If you’re in the Kansas area, you can reach out to us here in We Buy Cash Kc. We buy houses in Kansas City on a cash basis and we make sure that you get the best deal for your house.
When To Reject A Lowball Offer
Accepting a lowball offer can seriously devalue a home and the seller’s profits. However, sometimes it is best to reject a lowball offer in favor of another deal. If a home is in high demand or an offer has been on the table for some time, it may be wiser to reject a lowball offer.
Conversely, if a seller is desperate for a quick sale, it may be best to accept the offer and move on. In these cases, the seller should consider the circumstances closely and accept or reject the offer accordingly.
Understanding the Mindset of Low Ballers and Their Offers
Real estate low ballers can be frustrating to work with, but understanding their mindset and responding appropriately to their offers can help you get a good deal.
Take a moment and consider a potential win-win situation and see if you can find mutual benefit. If you need technological assistance in this areaTakeeach out to a real estate company near you.
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