Published: June 10, 2010
Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale.
Check your emotions
A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counteroffer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.
Counter the purchase offer
Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.
A counteroffer signals that you’re willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.
Consider the terms
Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.
Review your comps
Ask your REALTOR® whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.
Consider the buyer’s comps
Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.
If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.
Get the agents together
If the purchase offer is too low to counter, but you don’t have a better option, ask your real estate agent to call the buyer’s agent and try to narrow the price gap so that a counteroffer would make sense. Also, ask your real estate agent whether the buyer (or buyer’s agent) has a reputation for lowball purchase offers. If that’s the case, you might feel freer to reject the offer.
Don’t signal desperation
Buyers are sensitive to signs that a seller may be receptive to a low purchase offer. If your home is vacant or your home’s listing describes you as a “motivated” seller, you’re signaling you’re open to a low offer.
If you can remedy the situation, maybe by renting furniture or asking your agent not to mention in your home listing that you’re motivated, the next purchase offer you get might be more to your liking.
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“Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®."
http://www.houselogic.com/# posted by
Magnolia Realty @ 9:14 AM
BEAUTIFUL!!! That’s the consensus of the more than 30 REALTORS's who toured 2250 Columbia Drive during Wednesday’s Caravan. This nearly new home was pronounced to be “beautiful” by most of those who went through the home. Others exclaimed about the fantastic outdoor porch/deck area, the wonderful kitchen and the great master suite with the huge bedroom, really nice closet and vaulted-ceiling bath. Some liked the multi-purpose room which is currently used as a playroom with one REALTORâ stating that she’d buy the home just for that room. Another person said she’d use that room as a music room. Some said that they loved the mortar-washed brick. Some loved the large 4th bedroom/bonus room and some loved the spacious attic storage which is accessible at the top of the stairs. More than one commented on the lovely dining room. More than one commented on the nice office. The coffered ceiling in the Great Room and the hardwood floors drew raves as well. The few negatives that were mentioned were subjective such as the size of the back yard which was small to some but a little too big to others. All in all, it seemed that everyone thought that this is a really nice, special home.
Additionally, many really enjoyed the Taco Soup served by the listing agent, Ellen Faurot, her brownies and the delicious Pumpkin/spice mini-cupcakes made by Ellen’s daughter. Several requested the recipe for the soup so it follows:
Ellen’s Taco Soup (Santa Fe Soup or Southwestern Soup--I use the terms interchangeably-because I don‘t know better.)
2 lbs ground beef or turkey 1 (16 oz.) can pinto beans
1 onion, chopped 1 (16 oz.) can diced tomatoes, undrained
2 (1 ¼ -oz.) pkgs. Ranch-style 1 (16 oz.) can tomatoes and chilies dressing mix undrained
2 (1 ¼ oz.) pkgs. Taco seasoning mix 1 (10-oz.) can shoe peg corn, undrained
1 (16-oz.) can black beans 2 cups water
1 (16-oz.) can red kidney beans, undrained
Cook meat and onion together until meat is browned; drain. Stir Ranch-style dressing mix and taco seasoning mix into meat. Add beans, tomatoes and water, simmer for 2 hours. Add additional water if mixture is too thick. GARNISH: Sour cream, shredded cheddar cheese, sliced green onion tops. Serve with corn chips (which I prefer) or tortilla chips.
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Magnolia Realty @ 8:48 AM
On October 8, 2010, the Chicago Sun-Times reported that mortgages are at their lowest rates in many years. Their article said that thirty-year fixed mortgages slipped to 4.27 percent this week, the lowest on records dating back to 1971. This was down from 4.32 percent the week before. A drop in interest on 15-year loans to 3.72 percent from 3.75 percent, meanwhile, was the lowest on records dating back to 1991. Freddie Mac also reported that the five-year adjustable-rate mortgage fell to 3.47 percent from 3.52 percent last week, and the one-year ARM dropped to 3.40 percent this week from 3.48 percent.
W.R. Starkey Mortgage Company reported 30-year rates at 4.875 on Oct. 6 for investment properties after reporting rates of 3.875% for 30-year conventional mortgages and 3.5% for 15-year conventional loans on Oct. 4. Then on October 11, Primary Capital Advisors of Auburn also reported rates for 30-year fixed mortgages at 3.875% and 15-year fixed mortgages at 3.5%. If you are remotely interested in making a home purchase, now might be a good time. Check with your favorite bank or mortgage company for their current rates. You’ll probably be pleasantly surprised. You may even want to check with several lenders for the best rate possible. Many will allow you to lock rates in.
While interest rates are low and home prices are very reasonable is a really good time to look for a property that will suit your needs. Additionally, many sellers are willing to negotiate in the current market. Contact one of the Magnolia agents today and tell them the specifics of the home you’d like to find and the agent will gladly send you information on possible properties that closely match your requirements. Our agents can arrange showings for you.
Don’t miss out on these low interest rates and great home prices. It has been years since we have had these conditions in the Auburn area and the two together may not be available for long.
Blog prepared by Ellen Faurot
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Magnolia Realty @ 6:43 PM
