Low offer, seller insulted
You found the home of your dreams so you made an offer right away, but it was low. The seller found it insulting, so he decided not to make a counteroffer.
If you have been in real estate sales for some time you have probably heard of or experienced this scenario more than once.
What can be done to avoid the offer insult?
Both selling and buying sides can play a part in avoiding this situation. Educating the clients goes a long way.
When discussing the selling process, let the seller know it is likely a low offer will be made. The key is to refrain from getting offended, instead, view the first offer as the start of a negotiation process.
If the seller is hoping to get the asking price or close to it, make a counter close to the asking price. Doing so will send a message to the buying side as to the seller’s desire.
You might go back and forth a few times but eventually, there could be a meeting of the minds. You should let the seller know, if he failed to counter, he would lose out on an opportunity.
When explaining the buying process there should be a discussion about making a low offer, and the effect it could have on negotiation with the seller.
The buyer should also be made aware of the types of market; seller’s market, buyer’s market, and a normal market.
For instance, multiple offers are common in a seller’s market, therefore, you would not want to start the negotiation out on the low end. A lower bid would lead to disappointment every time.
When all parties know what to expect, the negotiation process is more successful and no one will feel insulted.