Congratulations! You’ve received an offer! But what do you do if someone offers you well below your asking price?
We strongly advise never to simply close the door on low offers. Instead, counter them!
Why? Because we’ve seen buyers and sellers successfully meet in the middle even after starting out with a significant divide.
Keep reading to discover how best to respond to low offers and how to understand the negotiation process.
The different types of low offers.
In some cases, a buyer’s offer may be all that they can afford. However, sometimes s they’ll simply be “playing the game,” giving themselves more negotiating room, or trying to gauge your reaction.
Check out our negotiation videos to get some ideas about how to respond in this situation. But, however you decide to respond, always aim to keep the lines of communication open and, if possible, keep the buyer interested.
It’s also a good time to think outside of the box – for example, are you willing to take ten thousand dollars less for a quick settlement?
How to reject a low offer.
If you want to reject the offer with no counter whatsoever, we recommend you do so in writing. Include a short, genuine statement why you arrived at the asking price, and why your property is worth it.
You should also leave the door open by asking permission to contact the buyer in future should there be any change in your situation.
How to accept a low offer.
Your other option, of course, is to accept the offer outright.
The process of formally accepting an offer and proceeding with the sale varies somewhat state to state, but there are a couple of basic steps common nationwide.
- The first step is to ensure you have the full details of the offer including price, inclusions, conditions, and settlement timeframe. Then ask for details of the buyer’s legal representation (e.g. their solicitor, conveyancer, or settlement agent). You’ll also need to give them details of your own legal representation.
- Phone your solicitor, conveyancer, or settlement agent so that they can draw up any paperwork required and liaise with the buyer’s representatives. From this point, your property legal team will advise you about anything else you need to do, and when you need to do it.
We hope you now feel a little more confident about responding to offers. Don’t forget to check out our other videos on offers and negotiations for more detailed information, or visit us at propertynow.com.au for more expert advice.