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.