These types of offers are the hardest to work with. Obviously, the buyers want the home enough to put together an offer. It can be low because that’s all they’re qualified for, or they also have a second or third choice in mind. They may also be trying to get the best deal possible. You’re not always sure what their motivation is. If price or ego is the issue, you can sometimes sweeten the deal by throwing in the refrigerator, extending or shortening the closing, or whatever you think the buyer will go for.
In one particular example, a buyer came in with a $10,000 low offer on a home that was priced at fair market value. The sellers wanted to reject the offer and not counter, but they finally cooled down and sent back a counter adding $9,800 and throwing in the lawnmower, hoses, and garden tools. They had bought a condo and were planning on leaving or giving the tools and equipment away anyway. The buyers accepted the counter. As it turned out, they were pleased to get everything they needed to maintain the yard, but most importantly, they felt they had won in the negotiating. They happily told their friends about all the equipment they had gotten the owner to throw in to make the deal. Many times, ego and emotions drive real estate deals, not concrete, wood, and nails. It’s important to be on the lookout for this.
Many times you’ll get a low offer, not because the home is not priced right but because the buyers have to try. Their egos demand it. The best way to handle this is to structure the counter to let the buyers save face and accept your counter. Give a $500 concession or throw in the refrigerator, a washer, or dryer you don’t want to move. The key is not to get into an ego battle with a buyer, but to focus on the goal of selling the house.
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