As a seasoned real estate professional, you've likely encountered your fair share of low ball offers. These offers, significantly below the asking price, can be both a challenge and an opportunity. In this blog, we'll explore the ins and outs of dealing with low ball offers and how you can turn them into successful transactions while ensuring your clients' interests are protected.

From the Seller's Perspective, low ball offers are often perceived as insulting, but it's essential to consider the buyer's perspective. They may be trying to test the waters or (push the penny) even though they are very interested in owning the property. By understanding their motivations, you can respond more effectively.

That’s why we must educate, not only the Buyer(s) but the Sellers as well. Before writing a low ball offer for your Buyer, do so diplomatically. Educate your customer on (1) Market Conditions, (2) Inventory. (3) Your customer buying power and (4) their desire to own the subject properly. Inform them that they should avoid input from anyone that is not involved in the transaction and focus on the facts. Highlight the positives, such as the buyer's interest in the property, while addressing the price issue.

For the Seller(s), before reacting to a low ball offer, educate your sellers about the current market conditions and comparable sales.  You must evaluate Buyer's financial capability before considering a counter offer or entertain the offer at all.  Rather than outright rejecting the low ball offer, counteroffer and keep an open mind to negotiate. Be patient and stay committed to achieving the best possible outcome for your customer. Rushing the process can lead to missed opportunities

Effective communication is the keys to a successful transaction. Keep the lines of communication open between the prospective buyer(s), seller(s), lender and both agents. Encourage constructive dialogue and be responsive to offers and counteroffers. Keep the conversation going and be willing to compromise. Your counteroffer should be clearly written and documented based on both parties wants. It’s important to keep a record of all communication, offers, counteroffers, and agreements to protect you, your Brokerage and your customer's legal interests. This helps manage their expectations and provides a solid foundation throughout the negotiation process.

Lastly, know when to walk away. Sometimes, low ball offers are simply too far from a reasonable compromise. More often than not, you may encounter investors that will place multiple offers with several agents just to see if anything will stick. You are to investigate, interview and look out for the best interest for you and your customer.  Don’t allow anyone waist you time when you discover that there are no reasonable conclusion to the deal, walk away and focus on other opportunities.