Seller Myth "Never respond to a low-ball offer"
Are you a seller who just received a very low ball offer and that offended you? You are so mad/angry and upset you just want to cross the offer and fax it back to the buyers? You are telling your Realtor why your home deservers more money than the home around the corner or REO or a Short sale (that may not even close). Let's just leave your thoughts on a side and understand why the buyer is offering the low ball offer and what you can do to make this deal a win-win.
Foremost you have an offer!!! that just show you, buyers are emotionally attached to your home and have taken time to get a preapproval and submitted an offer.
Updated CMA :
These buyers have walked and previewed 20-30 homes before they have decided to write on your home. Have your Realtor create a new CMA and show you were the other home similar to your home not just in your neighborhood but in and around your area are listed & priced. How many percentage are getting under contract and how many are active. If you have a large inventory of home and a few percentage of under contract that clearly shows demand versus supply and that will eventually result in further reduction in the prices. If not you another home seller will drop the price by large percentage and that will cause a trigger with other sellers who may be more desperate to sell. Think about it as... you just won the lottery. They could have written on ANY other property, but they selected yours. So get busy and negotiate!
Analyze your own goals and needs. How much do you really need to come out of this property to meet your goals of moving to your next home or reaching whatever goal you want to obtain? What could you really live with and what amount are you going to counter.
REMEMBER, it is a game of negotiation. Play out a strategy with your Realtor to counter back. Most sellers get caught with number or bottom line, but I would rather focus on over all offer. What are the other contingencies, closing date and other terms of the contract? They are all part of the deal; negotiate along with your numbers. Sometimes it makes sense to let the buyer get lower number but remove few of the contingencies.
Keep in mind; this is for the long haul. Keep it alive as long as the buyer will keep it alive.
There are countless sales lost over just a couple thousand dollars. If you have to stay active in the market for next 90-120 days longer you may have to come down where these buyers had originally offered you. The buyers will go out and find another home and so will your home also...but where we draw the line will get this home sold. The deal is not a one side deal but a decision and a team work by everyone involved in this transaction.
So next time you get a low ball offer, be patient, do not get upset, remember, they're trying to meet goals just like you are. By working together, both buyer and seller can get what they want and make a win-win situation!!