How to Jump Start Negotiations? Picture it, you submit an offer that you know is low and the seller looks down with their realtor and just says, What is this? I have been on both sides of that scenario. In this market, I would not recommend submitting a low offer, however a lower offer may be accepted for a variety of reasons, from time on the market to the other terms that may make it more acceptable to the seller. This is also a tactic many real estate investors use to start negotiations. Here is how this works and here are some scripts buyers can use if you do not have a realtor negotiating for you. If you are a new realtor looking to open up negotiations, this also can work for you. Here is the scenario and the scripts.
You submit an offer that is lower, the seller is shocked or surprised, and they can either not respond, or start a dialogue. If you are dealing with an inexperienced listing agent they will likely go over how they priced the home and the value of the area or they simply will not respond. We have a very low supply of homes on the market and homes priced at market value are selling at asking price, if not above, but if you are looking to start a dialogue to see what THEY think the price is worth and get a lower offer accepted, here are some scripted responses, for when an offer is rejected
“ Can you tell me what you think the property is worth, and how you arrived at your number? Were there aspects of the property that make it more valuable? I can take a second look and see if we can make any adjustments.”
“We may have miscalculated our offer. How far off are we from a number you had in mind?”
“I understand our offer price is lower than market value. However, we’re able to close quickly, pay for all of your closing costs and close without contingencies.”
These are some of my most useful strategies for getting opening dialogue with sellers, after submitting an offer that is low. There are a number of instances that this can have a positive result. The first is if the home is listed above market value and second if the home has been on the market some time. It is likely that these two instances occur together, because a properly priced home is not on the market for over 90 days, but that is another video! I hope that these scripts and tips are helpful to buyers AND to sellers. If you are looking for expert representation for buying or selling a Main Line home, please reach out. Kimmy Rolph Sells The Main Line and local areas.
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