Tuesday 4 June 2019

They offered what?!

You've just gotten an offer and it's so low, you'd think they were only looking to buy the bedrock under the house.  What are they thinking?

Well, first let's consider value in the open marketplace. At its basic definition, value is what buyers are willing to pay.  There is no value to anything except what buyers are willing to pay.

So if someone has made a low offer - or worse, you've had more than one low offer - there is a possibility that your list price is too high.  This can be a rough reality to accept, but it is something to give real consideration to.
BUT it could just be that you are in a tough segment of the market, whether it's location or some characteristic of the house. For example, one or two bedroom houses and houses without basements can be difficult to sell, with a more limited number of buyers finding this acceptable. 

In one situation, I was helping someone sell a townhouse in an area where not many townhouses have sold in recent years.  Bad enough without a lot of comparisons, but to make matters worse, the most recent sale of a similar property sold quite a bit lower than they should have because of financial pressures and the bank threatening to take the house away.  Of course, we knew that because my clients were neighbours and had heard the back story.  But buyers' agents hadn't heard that (until I told them) and we got some low offers based on that one lower-than-it-should-have-been sale.  Fortunately, we explained the situation, held to our expectations, and were able to get one of the buyers to come up enough to make the deal acceptable.

You won't always have something so identifiable as a cause for low offers, so I would suggest you discuss the situation with your agent.  And WAY before that happens, make sure you're choosing an agent you trust for both competence and character.

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