How to Deal with a Low-Ball Offer

By Al Trellis and Paul Sharp

Theres really only one effective response to a low-ball offer and thats to say to the potential buyers something like: I appreciate your interest but require an offer substantially closer to the asking price.

Support that statement by including all documentation (comps, other offers, recent sales, and so on) that indicates why others are willing to pay your asking price. Stress the benefits: great location, lot, neighborhood, schools, quality construction, etc. Show how the house will provide the quality of life theyre looking for, and show that its fairly valued at the asking price.

Notice what that answer does:

  • It doesnt offend the truly serious buyer whos simply looking for the best deal.

  • It creates a more meaningful negotiation range.

  • It indicates that you are flexible, if they are willing to make a reasonable offer.

  • It puts the ball back in their court for the next round of negotiations.

Finding customers is like looking for a needle in a haystack. You reach in, feel around, and finally find one. Then you pull it out and discover its a little rusty. So do you throw it away and go looking for another needle which could also be rusty or do you try to polish it? Always try to polish the first needle. If you cant, then you throw it away and hunt for another one.

Al Trellis has 25 years experience as a custom builder, speaker, consultant, and columnist. Al speaks to over 6,000 builders a year. Paul Sharp is a writer and marketing consultant and, along with Al, one of the founders of Home Builders Network. This article was reprinted from the book Building with an Attitude, published by Home Builder Press.

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