When your buyer wants to make a low offer, you may look at the number and immediately think there’s no way the seller will accept it. Before you say that, find out where your buyer is coming from.
Maybe they think the house is overpriced. Maybe it needs work, and they’re already thinking about what those repairs could cost. They may have seen another home in the neighborhood sell for less. Or maybe they simply want to start low and see what happens.
Whatever the reason, take a little time to talk about it before you write the offer.
Start With the Number
Let’s say the house is listed for $450,000 and your buyer tells you they want to offer $400,000… Ask them why!
You don’t need to make it complicated. “What made you land on $400,000?” is enough.
Once you know what they’re thinking, pull up some recent sales and look at them together. See what similar homes have actually sold for and how they compare with the one your buyer wants.
If the numbers support what your buyer is thinking, great. If they don’t, show them that too.
You’re not trying to convince them to offer a particular amount, but instead, you’re helping them make the decision with a little more information in front of them.
Take Another Look at the Listing
Before you write anything, go back through the listing.
- How long has the home been on the market?
- Has the price changed?
- Did it previously go under contract and come back?
- What else is for sale nearby?
A home that’s been listed for three months may be in a different situation than one that hit the market yesterday.
You still won’t know exactly what the seller is thinking, but you’ll have a better idea of what’s been happening with the property.
Give the Listing Agent a Call
It doesn’t hurt to pick up the phone before you write the offer. You can ask the listing agent if there’s anything you should know or if the seller has any terms that are especially important to them.
They may tell you there are other offers. They may mention that the seller would prefer a certain closing date. Or they may not give you much information at all. Either way, you’ve made the call.
Just don’t expect the listing agent to tell you the lowest price the seller will accept. Their job is to represent their client too.
Make Sure the Buyer Knows What Could Happen
If the buyer still wants to make the lower offer, talk about what might happen next. The seller could accept it. They could send back a counteroffer. They could reject it and move on.
If your buyer really loves the house, ask them something like: “If they say no and don’t counter, would you be okay losing the house at this price?”
Sometimes that question changes the conversation. Sometimes it doesn’t.
Either way, your buyer has had a chance to think about what they’re willing to risk before the offer goes over.
There’s More to an Offer Than the Price
Price gets most of the attention, but it isn’t the only thing the seller will see. Go through the rest of the offer with your buyer too.
The closing date, financing, deposits, contingencies, and other terms can all be part of the seller’s decision.
This is also where you want to slow down if you’re new. If there’s something in the contract you aren’t sure about, call your broker before you start explaining it to the buyer.
You don’t need to have every answer on your own.
Write the Offer Your Buyer Wants to Make
After you’ve gone through the numbers and talked about what could happen, your buyer may still want to make the same offer, and that’s okay.
You’ve given them information. They’ve made their decision. Now write the offer carefully and present it professionally.
There’s no reason to apologize to the listing agent for the price or tell them you tried to convince your buyer to offer more. Represent your client and let the seller decide how they want to respond.
If the Seller Counters
A counteroffer gives you something new to talk about. Go through it with your buyer and make sure they understand what changed. Then let them decide what they want to do.
They may accept it, or may counter again. They may decide they’ve reached their limit and walk away.
Don’t get so focused on getting the deal together that you start pushing your buyer past what they’re comfortable with.
And if the seller rejects the offer without a counter, talk with your buyer about whether they want to try again or go back to looking at homes.
You’ll Get More Comfortable With These Conversations
Writing an offer can feel very different when it’s your client’s money and your client’s decision, and that is especially true early in your career.
You’ll have buyers who want to offer less than you expected. You’ll have sellers who won’t budge. You’ll see negotiations come together quickly and others go back and forth several times.
Use your broker when you need help and pay attention to what you learn from each one.
Continuing education can help too. At LEAP Real Estate Academy in Orlando, you can learn from instructors who have been through these conversations with their own clients. Ask how they’ve handled difficult negotiations or what they’ve seen happen when buyers and sellers were far apart on price.
Those real examples can be helpful when you eventually find yourself sitting with a buyer who says:
“I know they’re asking $450,000, but I only want to offer $400,000.”
Instead of immediately telling them it’s too low, pull up the numbers, have the conversation, and help them understand what could happen next.
Keep learning with LEAP Real Estate Academy and build the skills you’ll use when you’re working with real buyers and sellers.
