When sellers should accept a low offer
Do you only ever get offers below your asking price? Here is valuable advice that will save you money!
Many real estate sellers have made it their goal to sell their property as quickly as possible. Some know that selling a property is a nerve-wracking task that can disrupt the normal routine of a day.
Others must have sold by a specific date because follow-up financing depends on it. Under this pressure, some real estate sellers are tempted to accept even a low offer just to sell the property and get back to business as usual. This article aims to give you some tips to help you decide what to do in such a situation.
Analyze your financial situation
Many real estate sellers are guided by their feelings. This may often work out well, but you usually make better decisions when you try to find rational reasons. Before you accept an offer, you should be clear about your financial situation. A quick sale certainly has many advantages, but in the end it's about a lot of money and who can afford to carelessly forego a nice sum?
If you are even in the situation of losing your property to foreclosure, then accepting a low offer is probably your only viable option. A foreclosure sale usually brings significantly less than if you sell your property on the "free" market.
Sale on a deadline
If you need the proceeds of your real estate sale for another financing on a certain date and this day X is soon, then you are in an awkward situation. It is now irrelevant whether it was because you went to the market with the wrong price or whether you waited too long for the inexperienced buyer to pay you the price you wanted for your property. They are in this position now and have to make the best of it.
Many cannot stand the pressure and sell their property at too low a price out of fear. They act out of the motivation that they want to save what can still be saved. They see this as their only option. This may often be the case, but sometimes there are alternatives if you look for them. In any case, talk to your bank to see if there are any refinancing options. Above all, don't talk to just one bank! We are in the fortunate position that there are banks like sand by the sea in Germany. You will only find out if there is a better solution for you if you take action and search for it.
We also recommend that you speak to a professional real estate agent. Real estate agents have often solved such cases to everyone's satisfaction. It's definitely better than having to accept a ridiculously low offer.
When is a bid even low?
Many real estate sellers require a certain amount of follow-up financing and any offers below this amount will be deemed unacceptable. We have already discussed the problems with this approach in other articles. But there is also the opposite case: A real estate seller bought his property years ago for 300,000 euros, for example. Now someone is offering him 320,000 euros for the property. Can that be a low offer, even though it is higher than the purchase price at the time? Yes it can!
The real estate market is changing and so are real estate prices. In any case, you should consult a real estate agent in order to be able to reliably assess the value of your property. Perhaps properties like yours are all the rage in your region at the moment and you can get a better price. It would be a pity if you gave up this extra money without need.
summary
Whatever your reasons for considering a low bid; You should seek expert help. You can get advice from a real estate agent and/or a financing expert. Please do not make hasty decisions just because your neighbors or co-workers think you should accept a low offer. It is better to trust the advice of real estate experts.