How to deal with a low offer

“When you first start securing viewings for your property, it can be an exciting time. It shows that there is interest in your property, and you may become hopeful that you will receive an offer and move on to the next step in the process. But, what do you do if the offer you receive doesn’t meet your expectations and is far off your asking price?” says Gerhard Kotzé, CEO of the RealNet property group.

“Receiving an offer well below your asking price can be frustrating for any seller, but it’s also important to keep in mind that negotiations are an important part of the process. And, with the right approach and guidance from a seasoned Property Practitioner, it’s possible to turn an initially underwhelming offer into a successful sale.

“A disappointing offer doesn’t have to be the end of the conversation, a buyer may simply be testing their luck to see if they can scoop up your property for much less than it’s worth, so it’s a good idea to remain open to the idea of possible negotiation instead of rejecting an offer straight entirely.

“Lowball offers have become increasingly common, especially because we are currently still experiencing a buyers’ market in most localities in South Africa. While these offers might feel discouraging, sellers should avoid taking them personally. Instead, you should consider why the buyer might be offering less. It could be their perception of market conditions, your property’s condition, or just as a negotiating tactic.

“A top-notch Property Professional will know how to vet buyers, gauge their level of seriousness, and negotiate on your behalf to secure a better offer. They will better understand market trends and will be equipped to justify your asking price with data and ultimately ensure that you receive a worthwhile deal.

If you are presented with a low offer, here’s how you should proceed:

Keep a level head - Consider the offer without bringing emotion into the equation. Ask your property practitioner how the offer weighs up against local market conditions, recent sales, and your home’s value before offering a response.

Counter offer strategically - Rather than rejecting the offer outright, work with your agent to present a reasonable counter offer.

Know when to give up - If an offer is ridiculously low and the buyer is unwilling to budge, or if the market is hot and you’re expecting other offers, your Property Practitioner can guide you on whether it’s best to move on.

Negotiation will always be part of the home selling and buying process, and sometimes a lowball offer is the starting point for a deal that leaves both parties happy.