Buyers understandably want to pay as little as possible
for the home they purchase, just as sellers understand-
ably want to receive the highest price possible for the
home they sell.
Buyers in slower markets, in particularly, look for
bargains. I guide my seller clients through the process
of price negotiations, including how best to respond to
low offers in a slow market, or how best to strengthen
offers in a competitive market.
If we’ve done our teamwork well, and your house is fairly priced and looks good, you should receive an offer within the timeframe that is typical for your market area – a timeframe that we will have discussed prior to finalizing the price.
In a competitive market, we may receive more than one offer, in which case the offer price may be bid up by competing buyers. In those instances, we’ll look closely not only at the price, but also at the terms that are offered: type and amount of financing, the length of time until closing, what kind of inspections are being requested, if any, and how long are those contingencies, etc. Importantly, if you’ve received a high-priced offer, we’ll need to see whether the buyers are asking for an appraisal contingency, and consider whether the property will appraise at that price.
On the other hand, in a slow market, you may receive a “low-ball” offer for your home, in which case it’s important to keep your cool! I’ll work with you to consider your best response, given the current market, how long your house has been on the market, and how much interest there has been over that period – and how well you think the inspections might go.
Some negotiations are short and sweet, while others can involve multiple counter offers with terms and conditions related not only to price, but also related to closing costs. It’s important to keep level-headed throughout this process!