Reasons Why You Are Getting Low Offers on Your Home

When selling your property, you have to be prepared to handle interested buyers that are looking to get the best deal possible on your home. It is up to you to decide whether you want to take the offer, but it is also important to consider that there may be reasons why the offer is so low.

Is it Too Low?

Have you actually decided if the offer is too low given the price that you listed the property for? While some agents say it is 25 percent or more below list, others have revised that to 20 percent in this current limited-inventory environment. All things being unequal, the definition of lowball varies from market to market, but also from price range to price range. To wit, an offer of $80,000 on a $100,000 home is more likely to be quickly dismissed than $1.6 million offer on a $2 million home.

Conversely, if you are trying to meet a profit goal, you may need to have to lower your expectations if the property has been on the local market for a longer period than expected. An experienced Realtor can help eliminate the issues caused by ineffective pricing strategies.

Advertising

If you have chosen to sell your home, there is always the risk that it is not being advertised to the right buyers. This means that it is attracting low offers from only a segment of the buyers that might be interested. Working with your real estate agent to come up with a comprehensive advertising and marketing plan for selling your home can help avoid the issue of low offers if you are pressed for time to sell the property.

Holding on to a property that you know was well-advertised and could attract better offers if given more time gives you an opportunity to sell for maximum profits, but you have to have positive cash flow to make this plan work. If you’re selling because need cash quickly, then you may run the risk of having to sell the property at a loss.

Average Sale Time

It is important to take into consideration the amount of time that it takes to sell homes in your area. If you are in a fast market, the time required to sell your home might be as short as 30 days. However, a slow market can be several months.

External Factors

Other factors such as the number of buyers that are currently searching for properties in your area could also affect how much foot traffic your property receives. Seasonal factors also have an impact as home buyers are more likely to shop when the weather is good than during a period of bad weather. The number of low offers you get can depend on numerous factors that are not necessarily within your direct control.

Deadlines

Dealing with a deadline can be both a blessing and a curse. If you need to sell by a specific date to avoid foreclosure or a loss of profit on the home, then you might decide how much risk you are willing to take on before you decide to give into an offer.

It is crucial to note that buyers can withdraw an offer at anytime. In fact, this happens more often than you might think. Talk to your Realtor before you put the home on the market or before you get closer to the deadline than you would like to.

No matter if you decide to sell or hold, you will be responsible for the obligations that come along with the sale. If you have outstanding debts that need to be paid, these costs will need to be factored into your strategy and may deeply cut into any profits that you were aiming to make.

 

These are just a few reasons why you may be getting low offers on your home. Don’t hesitate to contact DBL Real Estate with the link below for more information!

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