Here’s how to handle a low-ball offer. • Take a deep breath: Remember it’s not where negotiations begin, but where they end that counts. A low-ball is the first round, not the last. • Always respond: You might be tempted to walk away from the deal in a huff, but it’s better to respond with a counter offer. You can go straight to your bottom line, to save time and aggravation. Be prepared to back up that price with the list of comparables you used to arrive at that number. • Consider the complete offer: Price is important, but it’s not the only line item on a contract. Also consider: > How soon a buyer can close. > What type of financing—if any—the buyer needs. Cash offers are more attractive than offers that require financing. • Ask the buyer to explain: Hey, it never hurts to ask why a buyer is offering such a low bid. The answer might provide some useful information, which you could address with this buyer or research for the next low- baller. • Walk away: If you can’t get to yes, then it’s best to walk away. Thank the buyer for the offer, but be clear about why it is not acceptable. Always leave the door open for someone to return with an offer you can’t refuse. > Contingencies. A buyer may offer a low price in exchange for zero contingencies that could scotch or delay the deal. > How much earnest money the buyer will put up before the sale.
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