To sell your house you may need to make the first move, take the bull by the horns and make your potential buyer an offer they can't refuse.
So you've had your home on the market for several months no one has made a single offer.?? There have been some folks who have shown interest, they have even made a second and third visit to the house, but still no offer.
How can you turn these shoppers in to buyers??? In some cases you??can take the first step to bring the buyers in with a reverse offer.?? The reverse offer has been around since the 1980's, but in the most recent market most sellers didn't have dust off this old strategy since they literally have had buyers knocking down their doors and making multiple offers.
The Reverse Offer is when the seller makes the buyer an offer in the hopes of making the deal more attractive.?? The seller may take a couple thousand off the asking price, or throw in some other type of incentive like a warranty or an extended closing time.
A reverse offer should be used with caution though because it can backfire.?? Some buyers will see a reverse offer as a sign of desperation or weakness and may actually push the buyer away.?? So before you think about making a reverse offer you need to be certain that the buyer is really interested in the home, but that there is something that is holding them back.
Talk to the buyers agent and try to find out what their reservations may be and try to make offers to ease those concerns or make the deal more attractive to them.?? Don't tip your hand too soon though, use your best judgement to figure out when you should make a reverse offer.?? Think about these points before you make your revers offer:
- Interest. The would-be buyer must have shown some interest. Throwing an offer out there to just anyone who views your house probably won't be enough to get his attention. He should at least have come back for a second look. Otherwise,??it could encourage "fire-sale-type" counteroffers.
- Feedback. Similarly, the buyer must have mentioned to his agent that there was something he liked about your property. The big backyard, perhaps. Maybe the woods behind the house. Or perhaps the large master suite. Whatever it is, something must have tickled his fancy. Otherwise, he wouldn't have come back for another gander.
- The buyer. Your potential purchaser must be qualified. That is, he should be preapproved for a mortgage. If he's not, you could be spinning your wheels.??
- His agent. You can't try to bypass the buyer's agent. On the contrary, he must not only be involved but also on board with the idea. If the buyer's agent balks or doesn't understand that you are trying to open a dialogue with his client to see whether you can come to a meeting of the minds, making the buyer an offer won't work.??
- The offer. Put yourself in the buyer's shoes and be generous. Find out what has been holding the buyer back from making an offer, and meet those objections head-on. If the house needs a paint job, for example, offer to paint the place, or at least give the buyer an allowance to cover the cost. Or maybe he needs some help with closing costs.
- Price. Obviously, you'll have to come down on your asking price. But don't cut to your rock-bottom number, at least not right away.??
- Expiration. Once the offer is made, it cannot be revoked unilaterally. So be sure to put an expiration date in writing. Otherwise, the contract is considered an open offer.
If you are looking to sell your home or buy a home visit HouseRebate.com for the latest San Diego listings.
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