Given the unstable climate of many price points around North America, we are seeing more listings receive “lowball” offers and more buyers wanting to write them than we’ve seen in over a decade. When you are on the receiving end of the low offer as a listing agent, it can be argued that you have the toughest job — next to the work it took to take the listing — as many sellers today are still stuck in what their friends and neighbors got for their homes over the last several years.
To put you in a position to get more offers accepted, especially when they come in significantly under asking, consider the below techniques and dialogues, which are what I use to sell 50-60 listings monthly in my market.
Always treat the offer presentation as just that, a presentation!
Just like you presented at the table to get the listing, you need to think of the offer presentation as a similar presentation, which requires a good amount of energy, focus and enthusiasm.
Never say “we got an offer” until you have one in hand
Don’t jump the gun. Wait until the offer is signed and in writing before communicating anything to the seller. False hope is the fastest way to erode trust.
Never just forward the offer to them via email
This is lazy and risky. A weak agent forwards the offer and crosses their fingers. You don’t want to do this, because you lose control of their emotional response, what they focus on (price only) and your ability to guide them through the full offer.
Always schedule a time to review with your client
Schedule an in-person meeting, a group call or a Zoom meeting ASAP. Again, this is a presentation, not a casual-email moment. Open your dialogue with something like, “Mr. and Mrs. Seller, I have great news! We have received an offer, and I would like to go over it with you and explain our options.”
Use the calendar to create urgency
“We’ll want to respond by the end of day today or early tomorrow — let’s talk at 5 p.m. so we can review it together.” If you don’t do this, they may want to drag their feet with their response because they are not happy with the number or because they think they are too far apart and therefore it’s not going to come together.
Remind them that they are in control
Start by telling them that they can accept, decline or counter (any or all of the points). Be sure to point out that you do not expect them to accept and would encourage them to counter with a reasonable number to keep negotiations going.
Revisit their motivation
My three favorite questions to ask to get them back to their original motivation are:
• Why are they selling?
• When do they want to be there?
• What happens if they don’t meet that timeline?
Recap listing timeline and activity before presenting the offer
By doing so, you indirectly remind them that they are lucky to be in a position to entertain an offer and that they should be considering all offers at this point, even if it’s a low one.
• How long has it been on the market?
• How many showings? Offers?
• What has the feedback been?
• Low days on market vs. high days on market discussion.
Always share the price last
If it’s a low offer, be sure to point out all of the bright spots such as the ones listed below, before revealing the price.
• Discuss buyer’s qualifications.
• Financing or cash, and type of financing.
• Closing date.
• Occupancy time if applicable (seller rent-back).
• Inspection period.
• Other contingencies.
• Amount of earnest money deposit.
All offers are good offers
If you dismiss it, they will dismiss it. If you act offended, they will be offended. Lead with positivity and remind them that all transactions have to start with an offer, even if a low one. You set the emotional tone. Be excited. Be composed. Even if the offer isn’t ideal, enthusiasm leads to engagement. If you sound disappointed, they will be, too.
Pro tip: Have pending and recent sales in hand and ready to use to help back up the reason.
Focus on the seller’s net proceeds & try for a reduction simultaneously
When all else fails, get them a net number that they would walk away with. Sometimes the thought of the check will cause them to think about the negotiations differently, instead of focusing on how far “off” of the list price the buyer is. Additionally, when you help them with a counteroffer, suggest they reduce the price, because it’ll help to drive more traffic and will create urgency from the buyer when they see the seller trying to create more interest in their property.
Jeff Glover is a real estate trainer and coach who leads the Glover Agency and runs Glover U, a national coaching organization.