Should You Turn Down a Low Offer to Buy Your Home?

Selling a house comes with a lot of uncertainty and faith that the housing market will stay strong in favour of buyers. It is easy to panic if your home sits on the market for several months and start to consider jumping on some of the offers you may receive. Should you stand firm on your pricing or accept a low offer to get out from under the pressure of a no longer wanted mortgage? It depends on a variety of factors that are personal to you and your situation. Be sure and consult with your agent from Doorsteps. Your agent can guide you through the process of counter-offering and acceptance of an offer to buy your home. So what are some instances when accepting a low offer is the way to go?

  • You’ve listed your home above appraisal estimates. Chances are if a buyer did offer close to your asking price their mortgage lender would never have approved the loan. Realistically, banks won’t lend for much over the appraisal so starting your house at a price far above that level will require you to accept a low offer for actual sale of your home.
  • You are selling “as-is”. Generally, this means there will be a lot of remodelling and updating. There is damage that will be costly to fix and quite honestly, they are doing you a favour making an offer at all. If this is the case and the repairs are something you are not willing to finance to make more on your home then take the lower offer and close the deal.
  • Multiple counter-offers have been rejected. Has your home been on the market for close to a year? Have you had low offers with counter-offers that are continuously rejected. It may be time to have a talk with your agent and ask for brutal honesty. Are you asking too much for your home? Has the housing market declined? What is causing these low offers? Perhaps it is time to be realistic about what your property is truly worth and accept that next low offer.
  • You have to sell fast. It’s hard to accept a low offer knowing if you had more time you may get more for your home. Sometimes life just doesn’t deal us that perfect hand. If you are locating or have other reasons for needing to sell your home quickly then you may need to grab that low offer, cut your losses, and run with it.

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