Dealing with Low Offers: When to Negotiate and When to Walk Away

Receiving a low offer on your home can be hard to stomach, but usually it’s just business. One common trick some buyers use to gauge your level of motivation is to start low. Some are on a tight budget, others have read or seen something (true or not) that worries them.

You want to handle it with equanimity, maintain your price, and save the sale.

Step 1: Don’t Dismiss It Straight Away

Whatever deal you could have closed, all of it is gone with one swift no. Context will be given by your estate agent, so don’t immediately dismiss it. For Estate Agents Cheltenham, contact http://www.meandyouestateagents.co.uk/

Find out:

Whether they are a first-time buyer or in a chain
Whether or not they have proof of funds or a mortgage in principle
How quickly they can proceed
Whether the offer stems from a survey concern, or is merely a negotiation

Step 2: Can You Realistically Accept a Lower Price?

If you get plenty of viewings but only low offers, the market may be telling you something.

Look at:

Completed sale prices (not just what they were listed for)
Similar properties for sale in the local area
Parking, length of lease and other terms and conditions

If your home is priced correctly, one low offer does not matter. When all offers are low, that is a signal.

When to Negotiate

Negotiation makes sense when:

The buyer is in a strong position (cash, or no chain)
They can move quickly
They have offered within a realistic range of your base price
You have limited competing interest

Most of the time, simple is best: just counter. There are also many more parts of the offer to adjust other than price, such as terms for a quick completion or leaving certain things included with the house.

When to Walk Away

In some cases, walking away is the right move:

The buyer is unable to provide evidence of funds or a mortgage-ready position
They are asking for a large discount without any good reason
They keep changing the offer or adding conditions
There is more interest from other buyers

If you do say no, leave it open: ‘I am afraid we cannot agree to that figure, but near offers will be considered at £X’.

A Practical Rule of Thumb

Be open to negotiation. If the buyer is unsure and there is a big gap, hold your price so that you can walk away if you need to.

Your estate agent should advise you on the demand locally and help select a price that is most likely to secure a swift completion.