If you’re selling your home, you need to be prepared to potentially receive offers below asking price. That’s just the way negotiations work. It’s important to examine the offers objectively, without getting offended, and understand why a prospective buyer might offer what appears to be a low amount. The reason could differ from person to person, and knowing what the buyer is thinking is important for understanding how to respond to the offer.
Obviously, you can’t read the buyer’s mind, but you can talk to your agent. Your agent may have insights into market conditions or particular wording in the offer, and can also speak to the buyer’s agent. It’s possible that your home is overpriced. This doesn’t necessarily mean that someone made a mistake in valuing your home — sometimes a home is actually worth more than surrounding homes, but is at a price point that isn’t appealing to people looking in that area. This could require compromise. It’s also possible the buyer is simply leveraging the nature of negotiations, expecting you’ll counter higher than their offer, but below your initial asking price. Another possibility is that the buyer is well-qualified up to a certain amount, and is hoping for a quick and uncomplicated transaction. If, however, the offer is egregiously low and the buyer is not willing to compromise, it’s probably best to forget about it.
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