LowBall Offer - What would you counter with?

I just got a lowball offer on my home. Asking $525K. They offered $485K. Next door neighbor sold house for $535K 7 months ago.

What would you counter with? I am thinking 520 or 515. We are willing to go as low as 510K.

Our house has only been on the market for 2 weeks. Our new home won't be ready until May and the buyer needs to settle 2/11 - in 3 weeks. We can do temporary housing.

Thanks for your opinions!

Update:

This is our first offer.

Update 2:

What does your Realtor have to say about current market conditions for your home? Counter at 520K to see if they are serious.

How many showings have you had? 6 Is the buyer qualified to follow through with the purchase? Yes

Are they putting a lot of money down, or making a large deposit? Yes

How much is temporary housing going to cost you? We will save $ by living in temporary housing. About 1K a month.

11 Answers

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  • 1 decade ago
    Best Answer

    Another option would be to not counter offer anything. This shows you are not desparate and that you recognize thier offer as a lowball offer. If they are serious, they will come back with a second offer. If they are not serious, you can call them a week or two later with your counter. With time still on your side, I'd not respond.

    That said, it is a buyer's market. The market can be down 10% 3 months from now and you'd get $485 anyways. The call is yours, but the best way to let a buyer know they are not serious enough is by not responding, or by responding with a simple "no thank you" with no counter.

    Not knowing the actual market you are in and more about your house compared to comps makes it almost impossible to tell you if it is the right thing. If your house is priced to market, it will sell. Houses are still selling. The entire country is not falling apart, regardless of what the media says. If you have had your house on the market for 2 weeks and already have an offer, you must have a desirable house in a desirable location.

    Watch out for the agent pushing you to counter. Remember, his/her job is to get you to agree to sell. In most states, the real estate agent commission is due once there is a written contract and all contingencies have been met, even if the buyer never actually buys the house.

  • 1 decade ago

    What does your Realtor have to say about current market conditions for your home? How many showings have you had? How many showings have the other homes for sale in your area had? If you want to counter, there is no sure fire method. Your buyer can walk. What do you know about the offer? Is the buyer qualified to follow through with the purchase? Are they putting a lot of money down, or making a large deposit? How much is temporary housing going to cost you? You can offer 485k, but have settlement in May. You can split the difference, and offer 505k...which is less than you say you want. Remember, what you want has no impact on the value of your house. You can offer 510k and stick to this as your final offer. You can subtract your budget for temporary housing from 510k and again make settlement in May. It is up to you.

  • 1 decade ago

    I would counter at $515. and that way they more than likely would be happy with that and you would end up with $5 more than you were expecting to. 7 months ago was a totally different market than we are in right now, and due to the market right now, you may not see another offer from now until June and then you would be stuck with 2 mortgages. Also, remember that it is going to take another month or two before closing due to inspections and having things fixed when that happens.

  • 1 decade ago

    You can try $515K, but remember, if they're not morons they're going to get a home inspection and most likely there will be things to repair. They may also want you to pay for some costs, etc. that you're not counting on either so that $510K doesn't seem like a sure deal to me in this buyer's market. As they didn't go down even 10% they're probably serious. I hope they are pre-approved for a mortgage.

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  • 1 decade ago

    In the current market, that is not a real lowball offer. If you are going to be happy getting 510, I would counter at that and say it is your final offer. If not then go down to 520 and see if they come up.

    Source(s): Realtor in San Diego
  • edco
    Lv 5
    1 decade ago

    7 months ago was a whole 'nother time..

    Do you want to sell it or not..? How many other offers have you had..? I know u might not want to hear this, but if you counter with more than $500K, they might walk..and you might not get that $485 in 5 months if the market continues to decline..

    If you dont care if it sells, than go back with $515K

    It's still a BUYERS market in most of the country and will be for at least a year.. in my opinion :-) Ask your realtor !

  • 1 decade ago

    Since you have to do temporary housing I would counter with $520K and try to get at least $515.

  • cat
    Lv 4
    1 decade ago

    Since it's a buyer's market right now and with things being so bad, I would counter with 510K and if they then ask for 505K, take it! (But don't go down to 500K which is probably what they want.)

  • Anonymous
    1 decade ago

    I would counter back saying 510k is the absolutely lowest you will go and no other counter offer will be excepted. They will know you are serious and if they really want the house they'll sign.

  • Matt K
    Lv 4
    1 decade ago

    I would counter with 520, if you are willing to go as low as 510...b/c that's about where you would probably end up if they counter your counter.

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