Receiving an offer well below your asking price can be frustrating for any home seller but it is important to remember that negotiating is all part of the process. With the right approach—and the guidance of an experienced real estate agent—you can turn a lowball offer into a successful sale.
READ: Property price: Why not to overprice when selling
“A low offer does not have to be a dealbreaker,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. “Buyers may simply be testing the waters, so it’s important to remain open to negotiation rather than rejecting an offer outright.”
Lowball offers—those significantly below market value—are common, “especially in a buyer’s market like we are currently in across many most markets in SA,” Goslett notes. While these offers can feel discouraging, sellers should avoid taking them personally. Instead, he encourages sellers to consider why the buyer may be offering less. “It could be due to a perception of market conditions, the property’s condition, or simply a negotiating tactic,” he states.
“A professional agent knows how to gauge the seriousness of a buyer and can negotiate on your behalf to secure a better offer. They understand market trends, can justify your asking price with data, and ultimately ensure you get the best possible deal,” explains Goslett.
When presented with a lowball offer, RE/MAX of Southern Africa shares the following tips for how best to proceed next:
- Stay Calm and Assess – Consider the offer objectively. Ask your agent how the offer compares to local market conditions, recent sales, and your home’s value before responding.
- Counteroffer Strategically – Rather than outright rejecting the offer, work with your agent to present a reasonable counteroffer.
- Know When to Walk Away – If an offer is unreasonably low and the buyer is unwilling to budge, or if the market is hot and another offer is sure to come your way soon, your agent can guide you on whether it’s best to move on and wait for a better opportunity.
“Negotiation is a process. Sometimes, a low offer is just the starting point for a fair deal. An agent can help bridge the gap between buyer and seller expectations and can let you know when it’s best to move on. If you want to sell your home for the best possible price, partnering with an experienced real estate professional truly is your best move,” says Goslett.
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According to the Seeff Property Group, (The role of a real estate agent : What you need to know) agents do not only sell or rent property on behalf of their clients, but also have their ear to the ground in terms of what current property values are, how much properties might sell for, and what is happening in the property market.
Always meet the agents in person before appointing them:
This will give you a chance to ask questions and assess the agents. Check how long they have operated in the area. Each area is different and local expertise is a vital point of advantage for any seller.
Look for a successful sales track record:
Ask for a list of their recent sales in the area, how long it took to sell, and the prices achieved. A strong sales record is an important indicator of the likelihood of success and that the agent could find the right buyer for the property.
A strong brand and network is another advantage:
An established brand will have a strong online presence for maximum exposure of your property backed by the latest technology and marketing and sales methodologies. They will use best practice to market and sell your property.
Look for someone who will assist every step of the way:
Selling a property is a complex process with many legalities to be taken care of. A good agent will explain the process and guide the seller to ensure they have all the necessary documents and maintenance done for an efficient selling process.
READ: Safety measures to consider when selling and letting homes
Get the price right
Setting yourself up for selling success has a great deal to do with finding the pricing sweet spot. “Ultimately, prevailing market conditions determine what a property sells at. Of course that is influenced by the state of the property, the location and various other factors,” Viljoen says.
He adds that pricing it too low(in relation to similar properties in the area) tends to make buyers think there is something wrong with the property, while overpricing simply means that it won’t draw buyers. “Remember, buyers have access to various online tools and portals so they know exactly what similar properties are priced at,” Viljoen explains.
A property professional (see above!) is a great resource in this regard, and can work with a seller to establish the best, most accurate asking price for a property.
Understand the cost of selling
If there’s one thing to take from Viljoen’s advice it is to make very sure that, as the seller, you understand the various costs associated with selling a property. From bond cancellation costs to compliance certificates and agent commission, just because you’re the seller doesn’t mean you won’t incur costs.
Put your best foot forward
Lastly but as importantly, make sure that when a potential buyer views your property, they see it in the best light.
Put some effort into staging your home but ensuring it is clean, light and clutter-free at the very least. “The old adage about not getting a second chance to make a first impression is particularly true when it comes to potential buyers viewing properties,” Viljoen concludes.
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