Evaluating a low offer as a seller


Evaluating a low offer as a seller
By Scott Rogers • May 15, 2012
Let's suppose you have a house listed for sale for $300K. But keep in mind that you just lowered it to $300K from it's previous price of $309K. How would you respond to an offer of $270K? You probably consider $270K to be way too low of an offer, after all you just reduced you price from $309K. These ridiculous buyers are offering you $39K less than your asking price last week. Certainly, you should be able to sell for around $295K, right? Well, maybe not. In the last 365 days, properties in Harrisonburg and Rockingham County sold for an average of 95% of their last list price. That means that if $300K is a fair asking price, you should probably expect to sell for around $285K -- if you hit that 95% average. Then, all of a sudden, maybe the $270K offer on a $300K list price isn't too low at all. If you met in the middle, after all, you'd be right at that 95% mark. So....let's make it really hurt....how would you respond to an offer of $250K?? The same logic above applies here -- if your house is an average performer, you'll end up selling for $285K. And the $250K again probably seems waaaaay too low. But what if your house still isn't listed at a fair price? If nobody comes to view it over the next month, it may still be overpriced. Then, perhaps you'll find yourself lowering the list price to $290K. And then, of course, you might sell for that 95% average and end up at $275,500. So.....if you're listed at $300K and you might (a month+ from now) end up at $275K....perhaps you shouldn't turn up your nose at that $250K offer. See how high they are willing to go. . If you can get them up to $275K, you might want to consider taking it (bird in hand! bird in hand!) -- and if their super low offer of $250K was just to try to get you down to $280K or $285K, all the better! As a seller, don't be discouraged about what you view as a low offer -- after all, it's an indication that somebody really wants to buy your house. Don't let those buyers slip away --- negotiate creatively and try to get to a reasonable and mutually acceptable price. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 23, 2024 (unless otherwise noted).
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