Low ball offers made on the Maine real estate listings.
How to handle them best because they are out there. Low ball offers happen and are not a fluke. And letting property sellers know to expect and how to deal with them is best early on in the real estate discussion.
A little wisdom and education shared up front helps reduce the negative reaction when the low ball offers are made works best. Offers of any size need to be relayed from buyer to seller for their take good or bad by a Maine real estate agent or broker.
This real estate blog post on low ball offers made on property in Maine.
How low will the seller go? What’s the bottom line for the property owner today? Has the seller had any offers and how much, what was their reaction? Sizing up the seller is like a buyer is going into battle to buy low, then maybe sell high.
Making an offer on a property listing. The buyer and seller of any real estate deal have to agree on all the presented offer terms.
Sometimes the low ball offer is made because the buyer can only afford so much.
Like blowing into the cupped hands, rolling the dice and thinking “come on snake eyes” gambling. Hoping for a big property price reduction to bring the real estate more in reach for the buyer’s consideration to purchase it.
Often the real estate buyer can afford the listing price but just wants a better deal.
The money saved looks better folded up and kept in their wallet instead of handing it over to the property owner. Watching too many west coast production Hollywood real estate reality shows makes it look so easy to wheel and deal. Until out in the real World and everything settles back to Earth when a seller asks what are they smoking or is that buyer on some kind of drug?
Not everyone these days accepts “no” so well when an offer price and contract contingency terms get rejected.
The folks having the biggest issues with low ball offer rejection often just don’t consider the seller’s needs. It’s all about what the buyer wants and expects. And if the seller does not play along then somehow that property owner is a jerk, making their life harder than they are entitled it to be. How to buy a property cheaper is all about the tone of the delivery, the time frame to accept or reject.
Sellers who have mortgage lien hurdles to clear who owe money on the property can’t accept a low ball offer even if their wanted to on any given day.
Often it is a simple math exercise of what the buyer and seller can do to make the real estate sale come together. Fishing for the bottom line best price today by making a low ball offer to save money is all well and good. It does not have to be taken as an insult.
If the real estate buyer is sincere and ready, willing and able to follow through with their offer, fire away.
But if they are so far off the mark and way too low an offer is made. It can make a seller figure the buyer is just wasting their time.
Low ball offers on Maine real estate 101 time.
It is not just the price offered and way more to it. Regardless of high, low or in between, if the offer demands immediate possession, a list of extra repair items they expect the seller to do. And oh yeah, pick up the tab for all my closing costs.
Plus leave the zero turn riding lawn mower, pump the septic and don’t expect an oil or gas fuel proration.
Also, any building inspection, whatever is on the report, the seller has to chop chop fix it to the buyer’s satisfaction. All that can overwhelm the property owner because it’s too one sided and unreasonable in the seller’s opinion.
The buyer who tries to make the seller feel no one else would want their property.
That this one and only buyer is doing the seller a major favor out of the goodness of their heart to take the place, heavily discounted of course, off the seller’s hands. That type of approach to buying does not match up well with a seller who is selling “as is, where is”, has no mortgage, no time frame pressure to move. Or the one that’s rock solid firm on their listing price that is going to be the same as the selling one or no real estate sale.
In a slow real estate market, there are not truck loads of buyers coming down the pike.
So any and all offers are considered a little more seriously. Like estate sale sellers with closure from the letting go transfer of a family member’s property. When real estate inventory is low, demand is high, the likelihood of an offer being rejected increases proportionately. Lots of real estate buyers chomping at the bit to purchase means wait for it. A better deal is just ahead because of low supply and high demand.
Reminding the seller of a listing that by law the agent or broker has to convey any and all offers we receive.
It is so necessary before and during the presentation of any offer on real estate. Regardless of the real estate market temperature, an important part of my job as a Maine broker is to let the listing sellers know to expect offers. And for buyers making offers to prepare for certain reactions from experience presenting them. To keep both parties well aware of what is the Maine real estate market doing today. Those reports don’t stay current but fresh accurate ones sure help buyers and sellers when the statistics are for the area of Maine where the property listings are located.
Don’t shoot the messenger.
Sellers, take the time you need and just consider if you sold your property today, what would you have to get for a price to accept anything lower? That’s the real estate question to ask yourself as a seller receiving a low ball or any size offer.
Even if the property owner tells the agent or broker at the listing at the kitchen table don’t call me with anything less than the price tag hanging off the property on the MLS platform.
I have to convey any and all offers. It helps explaining to buyers and sellers what happens when low ball real estate offers are made. Sellers can still hold the low ball offer against the agent or broker as proof positive they are doing a poor job.
“There’s your sign.”
Otherwise why would all these low ball offers keep rolling in if I had a top notchwhiz bang Maine real estate broker at the helm?
That’s why relaying low ball offers is not the most enjoyable part of our job.
But it can also indicate the property price is too high. That maybe it was in line with the real estate market when listed but something has shifted to cause it to now be out of line.
Why else do low ball real estate offers happen?
Sometimes it is all the buyer can afford for real estate. And they hope maybe you are in a charitable mood, that this could be a desperate situation that would cause the seller to take a low ball offer.
Often the offer of any size is just designed to learn today, would you take any less for the property than the listing price Mr and Mrs, Miss or Ms Seller? How motivated is the buyer or seller to do their end of the sale? Often neither of the parties knows the true answer until put to the test.
What is the bottom line, show me what is the best you can do today if you are serious about selling with this price, these conditions.
This is classic real estate negotiating to make it work for both sides of the real estate teeter totter. It may not be fair for all, but is it accepted? Can a low ball offer be negotiated into one that will fly and get everyone to a real estate closing? A compromise is where neither party figure they got the better end of the deal. Often that is the best you can do to get to the hard fought closing where everyone got bloodied to keep the sale alive.
Time will tell if communication happens in the negotiation. The real estate sale will die if neglected and the discussion about the offer and what to do next are not occuring. The longer the parties grind back and forth, the more tedious the sale becomes and both parties can want to pull the plug to end negotiations.
Watching HGTV does not help and on television, out in Hollywood the reality of these west coast shows is less than accurate.
Because California media producers holler “lights, camera, action” to create something entertaining. To score high in the ratings. So making it look easy when there is more to it than is shown in the show does not help me on the small Maine town level. When I have to explain to a buyer or seller that on television it happens in staged transactions.
Cute sound bites and rehearsed video clips with a commercial break.
Sandwiched between the three homes a high end buyer tramps through and settles on one. That takes their breath away with a for sale price for many zero places used. In real life, it is not all figured out in a 22 minute show casual approach to the buy and sell in small rural low priced Maine.
When the seller says “I’m not going to give it away” the containment of the red faced anger has to happen early on.
Before he takes it real personal and feels disrespected. What is being sold makes a difference too. Many people would just chuckle at the low ball offer on real estate and just say no. Nice try. When it is their recreational land, a vacation property and not built with their own two hands from scratch family home. Or the place they grew up in and the way way too low offer on their parent’s place does not set well in their stomach.
Just say no. Keep it cool heads, calm hearts to low ball offers that go over like a lead balloon thud.
“Let’s start talking about what would you sell the property for today” works best to try to come up with a counter offer to relay back to the real estate buyer. Regardless of the offer size, time to mull it over and consider would a price reduction be in order must be allowed. Pressure never works well forcing the issue. Time to ponder and consider and get used to the ida is the best approach.
The don’t think about it decide and sign right here ASAP. To have to decide in the next ten minutes or by high noon today is too tight for most property owners to consider. It takes time to track down a couple who own or a family that are making the selling decision together. Then to provide for time to talk it over, think about it, sleep and pray over it. To not make a snap decision that will haunt them the rest of their life. Their families are involved, more than just yes or no slung back like a tennis serve to a number wildly thrown out by the real estate buyer.
And “heck no” is the instant reaction when no time to ponder the offer because the time table is too quick to mull it over and process.
As a Maine real estate broker, when a low ball offer comes in, it is not fun and games to have to be the one to convey it. Because it can look like you the real estate professional better do higher than that for the big commission in the sale paid at the tail end. What do you want to do with this low ball offer that has been presented property owner? Things can get a little stressful, tension can enter the room in the air you and the seller share.
Not everyone has much experience in negotiations and how it is done is one facet of our job as a real estate broker in Maine. Who is the go between with experience and can suggest the pros and cons of whatever decisions face either the buyer or seller.
What should I do takes consideration of how things are going in the property owner’s life and what is the motivation to sell today.
It is simply a business transaction in the buy and sell process. Offers are part of the real estate sale. The listed price can be the only figure the seller will consider accepting.
There may be no wiggle room to make the price quoted as low as possible going in.
And a smart seller will adjust the price a tad lower when the marketing time, the days on market DOM figure starts to climb higher.
Everyone stay calm and discuss the simple math exercise.
Clearing what is owned on the property can affect what you the seller want to do but not unless you can dig deep into the pocket. To pay off anything needed to add to the offer on your own to clear the bank mortgage or any other liens on the title to the real estate for sale.
Every property owner and buyer share one desire. They both want to buy low, sell high with differing degrees of motivation.
To be a hero. Tell all their loved ones, their friends down at the club. They like to brag about how savvy a business person they were to get this much this cheap. You work hard for your money, you want to hang onto it right? To make it stretch and be frugal is just good business.
If the offer is too low, the seller often won’t even respond with a number back.
They don’t take the low ball offer too serious because it is not even close to a few thousand dollars from the listed price. But if the possession date can increase in winter, if the buyer will purchase equipment. That was not included in the sale for a decent price, the lower offer is considered with all the other elements of a real estate sale it swims around.
Staying rent free for the winter in the home just sold but that allows a move in spring and time to look for the next real estate puzzle piece needed by the seller.
That can help sweeten the sting of a lower offer on property in Maine.
Fewer contingencies, cold hard cash not complicated drawn out bank financing.
Not relying on another property to sell first can make a lower offer more attractive.
If closing costs have to come out of the seller’s pocket in that offer, then the bottom line is lower than first glance at what is filled in on the purchase offer price in the sales agreement.
Keep it simple, think if you were the seller, how would you react if the deal is too one sided.
Going back and forth can get tedious and too many trips to the buyer and seller can kill the sale. Both can get annoyed if a common middle ground can not be reached for a compromise. A compromise is often best when neither buyer and seller are happy so both made concessions for the good of the deal to keep it alive and kicking.
A divorcing property owner in the real estate sale adds another dimension to consider to the reception of the low ball offer.
In a deal that is already stressed to the max, the low ball offer can really be swallowed hard and goes down the wrong way.
The steps to take when a low ball offer is presented on a property listing for sale in Maine.
The buyer and seller have different opinions on what the value is of the property for sales. A bank appraiser is going to weigh in too when a bank is involved for financing. So regardless what is agreed to on the purchase and sale agreement, it is what the mortgage lender valuation and repair costs does to that figure agreeded to up front by the real estate buyer or seller.
A bank loan appraiser can kill the sale because he or she is not in agreement with the figure the buyer and seller settled on at the beginning of this real estate sale.
How long the home, whatever property has been for sale impacts the reaction to a low ball offer too.
Time has a way of making a seller lower their sights. Buyers don’t want a property more when they learn it has been for sale for years. They wonder what is wrong and why hasn’t the place sold. Often the price is just too high, that is all that is keeping a sale of the property when the seller holds firm to the wrong price.
That the listing agent or broker should have respectfully pointed out from review of the comparable sales and listings that it is too high. Not often, but sometimes too low.
Don’t take those over priced listings saves everyone heart ache and wasted spinning their wheels and wasting time, money that takes away from other fairly priced properties.
The market value can rock and lower because of the local economy or too big a supply with lower demand of this type of property. Real estate listings swim in a market stream that warms up, cools off and the current one can pick up or slow down. The way the low ball offer is made can impact the seller’s reaction to it.
If the buyer let’s it be known this place is a dump, who the heck would want it with those stupid too relaxed a carpenter improvements, that crazy color scheme, etc. You hurt the seller’s feelings and become the last person on Earth they would sell to Chummy.
Beating them up, being a real estate bully works in reverse to what the offer made hopes to accomplish in a sale.
It does break the ice and soften up the seller for the next call from the agent or broker. The next offer presented professionally with a politely, would you consider selling for this amount with plenty of time to think it over before the response is expected. Those kind of offers go smoother, are more professional even if not accepted.
The low ball or any offers as they come in one by one shows there is interest.
Just not at this price. They let the property listing seller know maybe the price has to drop, like the agent or broker has gently suggested if they think about past conversations when being updated on how’s the market, why is my property not selling, etc.
Marketing far away from the local area can increase the number of leads for a quicker, more profitable sale.
Outside buyers are used to higher property price tags than the local buyer can handle too. We pride ourselves on far reaching, full throttle outside and local marketing of our real estate listings. So the buyers and sellers can get on with live.To not be made to wait around.
Delayed when plans are put on hold and it is like treading water for a very long time. Hoping for something to happen to get on with the show. Costly delays are caused when time bleeds and causes expensive hanging around when the buyer and seller need to move along.
Adding or taking away something small from the real estate offer can make all the difference.
Leave those three bar stools and curtains you were planning on taking Mr Seller. Don’t quibble over the fifty gallons of heating oil or the worn out lawnmower the buyer has his eye on. And asking the owner do you really think you will be using some of these items in your new place that they won’t fit?
Think about it. What is the stumbling block to the sale moving forward. Is it worth the cost to move harvest gold old appliances, lots of heavy furniture half way across the country considering moving van costs or their L3 and L4 back joint if the heave ho is DIY?
Making an offer, low ball or otherwise. It all starts and ends with discussion and questions raised, answers provided by the real estate professional. Thinking of buying or selling? Put 41 years of experience doing both to work for you by calling, emailing, texting MOOERS REALTY when you are ready.
I’m Maine REALTOR Andrew Mooers, ME Broker
207.532.6573 | info@mooersrealty.com |
MOOERS REALTY 69 North ST Houlton ME USA
