Dear Heather

My house has been on the market for six months and I have received two offers, both of which were too low. Should I have countered? I don’t know what to do — help!

Exasperated

St. George’s

Dear Exasperated

If your home has been on the market for three to six months and the price has already been reduced, you are probably beginning to wonder how much lower you can go. A potential buyer may come along and present a ‘lowball’ offer, which can be 10 percent or more below the list price and involves some sort of strategic negotiations. Before slamming the door on such an offer, review these tips to help guide you through the process.

Don’t reject the offer right away. It is important you recognise this is a negotiation game and the buyer is serious or s/he would not have put in the bid.

Analyse your own goals and needs. How much do you need from this deal in order to move to your next home? Can you lower those expectations? What will be your counter offer? Recognise that what you ‘need’ does not always translate into what your house is worth.

Conduct a comparative analysis. Check the temperature of the marketplace. Ask your agent to inform you about what has happened in the housing market recently to get this buyer to make this type of offer? Also, take stock of the present inventory in your neighbourhood and how they are priced comparatively and how long they have been for sale. It is important to recognise if your home may be priced too high compared to similar houses in your area.

Negotiate! Keep the conversation alive with the buyer for as long as you can. Do not settle right away. Always maintain open communication with your agent; he or she is there to help you get the best price possible for your home. Remember, if the offer is too low, always counter; don’t walk away. Sometimes buyers simply want to test the waters.

Work together. Ensure the buyer’s agent and his or her customers are aware you are willing to work with them. If you have waited this long to sell your house, what are a few extra days or weeks? Keep everyone engaged in the process until you find a mutually agreeable conclusion.

Offer your final counter. Make your final offer and stick with it. Keep in mind you don’t want to be so stubborn that you lose the buyer over a couple of thousand dollars. Be patient with the process. Understand selling takes time and both parties want to meet their expectations. By taking time to work with your agent and follow their advice, together you can arrive at a deal that is beneficial for all involved.

Heather Chilvers is among Coldwell Banker Bermuda Realty’s Leading Sales Representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332 1793. All questions will be answered confidentially.