Might I begin with, an offer is an offer! I would not look my nose down at any offer. I have worked through enough offers in my life to value the importance of each and every one of them. Keep in mind how important it is to actually sell the property that you have for sale. There are two types of lowball offers. Let’s explore the first one, the “are you kidding me” offer. Right from the start I will tell you that there are people in this world with the nerve to place a $100k offer on a house that is listed for $300k. That said, should this happen to you simply decline their offer but always give them something back. For instance in our example, they offer their $100k and your counter offer at $299k. This sends a clear signal to the potential buyer that you are not stupid and that there is no house here to be stolen away. Many times with gaps this large, that buyer will just go away and that’s what they need to do. Please do yourself a favor and do not allow this type of lowball offer discourage you from continuing to sell your property.
The second type of lowball offer is just a game of ball! When I receive an offer, I appreciate its value even if it is lower than I really wanted it to be. Do you know why? Because the buyer is, in a sense, playing ball with you. And one participant on the playing field is better than none.
First, I would look at the amount of this offer. Then, I would check for their proposed date to close the deal, contingencies like mortgage, pest inspection and home inspections, too. Lastly, I would review the offer for any extras they are asking me for, like that old light fixture that belonged to your grandfather.
Many times buyers offer low just to see what they can get, it’s just the game. What typically ends up happening is that you meet in the middle. An example of this would be a $300k home and they offer at $280k. Each party ends up moving toward each other at a few thousand dollars at a time until they meet in the middle. With this example, both parties would settle and sign at $290k.
Lastly, it is my opinion that all offers should always be handled professionally and with the hope that they will result in the sale of your property.
Real estate buyer’s remorse is more common than you might think. Making a large investment can cause anyone to second guess themselves, especially if you are a fairly new investor. “The best way to handle real estate buyer’s remorse is to deal with it preemptively. Know that it will occur, not that it might occur, after the transaction is complete,” said Richard Buck, a retired Coldwell Banker real estate agent.
If you’ve invested in a piece of real estate that you are having second thoughts about, here are some important things to consider.
- Know it will happen – Making a large investment will cause almost anyone to second guess themselves. The feeling is common among real estate buyers and new home owners.
- Be prepared – Prepare yourself for feelings of doubt by making a list of the reasons why you bought the property.
- It’s a normal feeling – You may be tempted to entertain thoughts about your ability as an investor because of your remorse. “Know that what you are feeling is normal and it will pass,” Buck said.
- It happens to everyone – Seasoned investors as well as new investors will experience buyer’s remorse. Know you aren’t alone
- If you are a new investor, you may be feeling overwhelmed. – Your remorse may be a feeling of being overwhelmed rather than actual remorse over the investment itself.
- Acknowledge the problems that the property has – If it needs a paint job, get one. If the hinges are squeaky, replace them. Fix the things that you know need to be fixed.
- Review your research – There are reasons you bought this property. What led you to pick this property? Why did you think it was a good investment? Remembering your initial reasons for selecting a piece of real estate can help you rid yourself of real estate buyer’s remorse.
- Have confidence in your abilities – Even if your confidence is shaken at the moment, remember that you are a talented and knowledgeable professional. Consider your track record for successful investments. Know that this investment will soon be on that same list of successes.
- Talk to other investors – Other investors can help you deal with your buyer’s remorse in a constructive manner. They have been where you are and can help reassure you that your investment was a wise decision.
- Keep your eyes on your goals – Remember that you purchased this piece of real estate for a reason. Remember your reasons and follow though with your plan. Your feeling of remorse will pass once you fully get used to the idea.
“Investing in real estate is a wise decision in any market,” Buck adds. Follow through with your initial plans and you will soon find that your real estate buyer’s remorse will fade.