When selling, lowball offers can work to your advantage if you’re working with a good listing agent. Try not to take it personally. Oftentimes, a buyer will make a lowball offer against the advice of their agent. The buyer may think by starting extra-low they can get you to “meet in the middle”. Therefore, the final agreed-upon price is to their liking.
Buyer’s agents typically discourage their clients from making lowball offers, and for good reason:
- Lowball offers can offend a seller so much that they refuse to work with the buyer at all.
- Lowball offers can backfire entirely. By creating a competitive situation, the lowball offer may force the buyer to go up or above the asking price.
Buyer’s Agent Myths
You may believe that an agent who encourages their client to offer closer to what they are willing to pay is only motivated by the commission check. This is not the case! To clarify, they are trying to make sure the seller will be willing to engage with the offer at all. A $50,000 gap between the listing price and offer is likely not worth negotiating. For instance, it implies that the buyer may be unreasonable. Even if they come up in price, the buyer may make demands, later on, to make up for it. We have a better plan for our buyers. Start by offering closer to what you are willing to pay. That way, the seller will be willing to engage in negotiations from the beginning.
Receiving a Low Offer
So what should you do with a ridiculously low offer if you receive one? If your agent is experienced and has the right systems in place, they can spin the narrative. They will not disclose the offer amount (nor are they allowed to). However, they will reach out to every agent that’s shown your property to let them know there’s an offer on the table. This is where good systems come into play. Here at Crane Realty, we log anyone who has shown or called about your property. That way, we can efficiently reach out to anyone who has an interest.
Usually, that’s enough to encourage someone else to make an offer as well. Isn’t psychology neat? If someone else wants it, it must be good!
But other potential buyers don’t know it’s a lowball offer, so their offer may be much more reasonable. From there, the bidding war begins. Amounts and contingencies can’t and won’t be disclosed to potential buyers or their agents. Meanwhile, the added pressure of a competitive situation can be enough to drive up the price to be near or above the initial asking. Too bad for the original buyer, but a great opportunity for the seller!
At Crane Realty, we make sure a listing agent represents just the seller, meanwhile, the buyer’s agent represents the buyer. Why? Because then we can work 100% for each individual client by providing the best advice to meet your goals. You will receive exceptional representation as we make recommendations that are in your best interest. (That’s true for both buyers and sellers!) Let us help you get the most for your property!
