About 30 days ago I wrote a blog post about how to counter a low-ball offer. Well, since that listing closed on Tuesday, I guess it’s time to give the details. This was a flip home that my seller bought in foreclosure for $191,500 and we had it listed for $237,950. Here is the pdf of the renovation and fix-up costs that we put into the home.
To refresh your memory, we originally received an offer of $200,000, which I deemed a ‘low-ball’ offer. Then I wrote a article about how buyers become attached to a property before they are under contract on the home. We countered the low-ball offer at $229,950 and they came back with offers of $220k, $225k, $227k and then we settled at a price of $227,900.
In this scenario, I believe the buyer’s agent gave out too much information on the buyers situation. We knew she was a single female that was closing on her home on November 23rd. This gave her less than 30 days from her initial offer to find a home. Therefore, this rules out any short-sales on the market and given the granite countertops and travertine bathrooms in our house, she was wanting something that had been fixed-up real nice….this get’s rid of basically all foreclosures on the market.
With the location (Val Vista | Elliot in Gilbert)Â being outside of an area of many new home builders, we knew there was very little competition that could compete with our listing. We stuck to our price and then finally dropped it a little in the end to make her feel like she was getting a better deal.
