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If you’re selling a property in Vancouver right now there is a very good chance you have received or will receive a lowball offer. This video explains how to avoid a low ball offer and what to do if you receive one.
What is a lowball offer?
Have a look at my previously posted video on lowball offers
Why are lowball offers so common right now?
Real Estate prices in Vancouver are falling at present. Buyers are worried they will buy a property that will be worth less tomorrow than what they paid for it today. Lowball offers are common right now because it allows Buyers to get the best possible value and potentially get ahead of predicted declines in price.
How a can a Seller avoid getting a lowball offer?
DON’T overprice your property! If you want a good offer, you have to have a good fair price price based on market reality! A property that is priced according to market value will have a far less chance of getting lowballed. A Seller who prices their property were the market is at (not where it was 3-6 months ago!) will have more than one interested buyer and will have the market power to get a lowballer to come up or to wait for other interested buyers.
What should a Seller do if they get a lowball offer?
Don’t angry, get even with a good counter offer! A Seller should always give a counter offer to a lowball offer. Why do I say this? Because you as the Seller never know if the buyer is bluffing. If they are bluffing they are not serious and they will go away. If the Buyer isn’t bluffing there is a very good chance after some negotiation that they Buyer will accept a price that works for the Seller.
I’d love to hear your thoughts!
Good job! I like! Keep tha good work up!
Mike,
Do you expect a lot of investors selling their condos below presale prices at the W?
Will there be opportunities there for lowball deals?
Thurston.
Hi Thurston,
Good to hear from you.
Tough to say. If they want to sell in this market, they may have to…
I think there will be huge opportunities for buyers to low ball at the W.
Typically when new buildings complete and there have been a lot of investors who bought in at the pre-sale stage, there is a flood of these people trying to get their suites sold…
I think there will be a lot of listings at The Woodwards Building upon competion and in a situation with a lot of supply a low balling buyer can leverage themselves a very good offer by getting the sellers to compete with one another to get an offer…
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I got lowballed. Am not
Underwater on my property
But would have had to borrow
Money to unload the house if I accepted
This offer. Better off walking away
Hi!
Good to hear from you and thank you for commenting!
Do you have a Realtor you’re working with?
I ask, because I do not want to interfere with an existing
Agency Relationship.
A lowball is just an invitation to negotiate.
I think that countering the Buyer is a very good way to see if the Buyers are serious about buying the property.
If you send the Buyers a decent counter offer and the don’t do anything, you know they’re not serious.
If they send a counter offer, you know they’re serious and there’s a chance you can negotiate them up to a price that works for you.
If you’re working with a Realtor, ask what they think you should do, but I always say counter a low ball.
How did you hear about my blog?
Speak soon,
Yes I know and these lowballers
Don’t get it. For one thing my placed
Was priced well within comparative
Market analysis. The other thing is
I would have to borrow 25k just
To unload it. That’s 25k for an asset I
No longer own or use. Why bother
To sell if there’s always some predatory
Opportunistic $%##* who is too lazy
To hold up a bank for money? Just walk
Away Renee. This describes why the
Market will keep going down
Hi Seller,
Good to hear from you and thanks for commenting.
I don’t allow profanity on my site, so I hope you don’t mind that I’ve edited your comment to remove the profanity.
Sounds like you’re in a tough spot.
I would check your Comparative Market Analysis to see when it was done and see if the market has changed since your property was analyzed last. If your numbers make sense, then it might be good idea to share the comps with your Buyers so they know where you’re coming from.
Also, I would review your pricing strategies for your property. What are the goals? Are they achievable?
Another thing to check is what’s happening in the real estate market where you are. Are you in Greater Vancouver? The Monthly Real Estate Board Stats I have on this site can give you a very clear idea on whats happening in all areas of Metro Vancouver.
For more info on this check out my videos on How to Sell a Condo, that might help.
Hope this helps!
Apologize for the profanity. I just
Couldn’t find better words for people
That make their fortune off someone
Else’s back. It’s the American way
That’s why the teaparty is picking up so
Much steam in congress. Bottom
Line is I worked hard all my life and
Stand to lose so much due to greed
And market manipulation. It doesn’t
Pay to accept a lowball offer and eat
The difference. After a year of unemployment
I don’t have time to make selling my
Home a sport.
Every cent I can get
Hi Seller,
Good to hear from you and thank you for commenting.
I hear your frustration.
Do keep in mind that you are not required to accept a low ball offer on your property.
A low ball is just an invitation to negotiate.
A lowball offer is not a personal affront or attack.
I always suggest countering a low ball to get the Buyers up to where you want them.
What happened with the offer?
Speak soon,
Original lowball was only 70 percent
Of asking price. I didn’t bother
To return the fire
Hi Seller,
Wow, that was quite the low ball!
Are you in the Greater Vancouver area?
If so, I am surprised a buyer would submit an offer as low as that.
How long has the property been listed?
Looking forward to hearing more.
Thanks!
No actually the Place is in new jersey
Been listed for a month
Even if I were desperate I couldn’t sell it fo that price. Foreclosure is
A more attractive option
Hi Seller,
Good to hear from you and thank you for commenting.
From what I understand, the US property market has been hit far harder than we were here in Canada and continues to have serious problems that we aren’t experiencing here in Canada.
The US situation is so different, I don’t feel qualified to comment.
Did you try sending the Buyers a counter offer?
Looking forward to hearing from you.