What to do when you get a low first offer?

Does your 1st offer seem too low

How do you handle a low offer when you sell your home?  The interest rate at it’s lowest in over 5 decades.  And the SA property market still finds itself in a buyer’s market, meaning there is more stock than there are buyers at the moment.  This is a buyer’s market fair and square and there are a few benefits stacked on a buyer’s side right now:

  • Because the interest rate is the lowest it’s been in over 50 years, buyers that could only afford to buy a property for say R1m can now ‘buy up”. This means that affordability is better if you are buying a property at the moment.
  • Also, buyers know the interest rate is down and they may also know that if you have had a property on the market for some time that they would be willing to test the waters with a very low offer. Remember when you sell your home, that buyers are looking for good deals at the moment and this may result in them putting in a cheeky offer.

Handle a low offer like a pro when you sell your home?

When you sell your home, and you do get an offer, especially if it’s your 1st offer on your property but it’s way lower than you were expecting, take a huge breath, and just breathe.  Remember that this is not necessarily a bad thing, in fact, it’s a good thing.  This means that the potential buyer likes your home enough to put in an offer.  Remember that this is where the negotiation starts.  Hopefully, you are working with a seasoned estate agent who can help you with the negotiation.

This is for all intents and purposes an opening bid.  If you are selling your home, the best way to handle this is to understand that this is when you can expect to start receiving counteroffers.  A low-ball offer is better than no offer and no interest.  If you are working with a top real estate professional they will be able to help you from here.  You have every right to either accept or reject the offer at any stage, before the sale agreement or the offer to purchase (OTP) is signed.

When you sell your home, remember buyers are informed

There is a great deal of information available about property trends at the moment.  In fact, buyers are more informed than ever, and given that we have all come out of a level  5 lockdown, we have all read a great deal more than usual.   A buyer will always be looking for good value for money and a good bargain at that.

Buyers have done their homework

  • Online viewings during level 5 were prominent.
  • Buyers had time to read up on the property trends.
  • Buyers now know full well what they really want in a property.
  • Overpriced properties have been eliminated from their search.
  • Estate agents need to work harder to take better photos.
  • And top estate agents now consider more than ever the introduction of a 3D video because they work.  Although these are expensive to compile they do differentiate your property.  And your property rankings actually go up because of the video.
  • A serious buyer now puts in an offer with a pre-approved loan from the bank.

Need a free property valuation

The process to sell a home starts with a free property valuation or a property appraisal.  We have covered this topic quite a few times.  Click here to find out how we have unpacked the terminology associated with understanding a property valuation.  Let us get an agent to get in touch with you today to do a free property valuation.  The asking price really is your most important decision to make when you decide to sell.  Click here to book your property valuation now.

Connect with a top KW Select estate agent now

If you are planning on selling your home then you want to partner with a top estate agent in your area.  By partnering with a prominent KW estate agent, you know you can rely on their strong negotiating skills to get you the best price possible when you sell.   Remember an agent’s commission is derived from the sale of your property making it important to both you and your estate agent to get the best price when you sell.  Click here to connect with a top estate agent in your area now.

Estate Agents – want to know more about KW?

Keller Williams (USA) is a top real estate brand to work for.  If you are an estate agent and want to know a little more drop me an e-mail.   If you would like to leverage world-class technology to the benefit of all our stakeholders across the value chain and end up with a win-win every time, then let’s touch base.  Also, read what makes Keller Williams the best!

Get in touch 

So, if you need a valuation done on a property anywhere in Randburg or elsewhere in Jhb, we can help.  Give us a call on telephone number (064) 549-3123.  Alternatively, drop us an e-mail at kwselect@kwsa.co.za.  We have a vast network of almost 1,500 top Keller Williams agents at our fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.

If you want to view all the Keller Williams properties across the country, click on our website to start the search for your dream home.  Need help getting a pre-approved homeloan, it’s free and our strategic partners will find you the best rate over 20 years!  And finally, if you are thinking of putting your property on the market and need a free property valuation, click here!

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