The Los Angeles real estate market mostly favors sellers at the present time, so why did I get a low offer on my home?
That’s an excellent question. You would think that any home coming on the market is going to sell quickly, with multiple offers, and over asking. So why is your home still sitting on the market? There are a few reasons.
Most probably it is overpriced. Even in a hot market buyers still do their homework by looking at similar properties that have sold or ones that are currently on the market. If you have priced your home higher with no obvious reason to have done so, you will find that you are not getting offers or if you are, they are lower than you would like. Take a look at the homes that sold and determine what yours is worth in comparison.
- Were those sold homes upgraded with new baths and kitchens? The less work a new owner has to do they more valuable the home.
- Where are they located? Maybe they are on a less busy street or have a different exposure. This you cannot do anything about but it is a factor in value. Location, location, location.
- Maybe the sold homes are newer than yours or have a feature that adds value like a swimming pool or a guest house.
- In the case of a condo the floor can be important, Often the higher the floor the greater the value and a first-floor unit may be less desirable because of security, and they tend to be darker.
- Did the other properties have a view or a better view than yours?
These are some examples of why a buyer may consider your home overpriced and decide to offer less. Another factor they sometimes look at is what you originally paid for the home and they make a decision based on the fact that they think you are making too big a profit. This, of course, has nothing to do with what should be a fair offer, and if you are priced correctly then you would handle this offer differently.
But, if you are priced correctly the low offer will not be the only one your receive and you may not want to consider one that is not realistic. Just concentrate on the fair offers. However, if the low offer is the only one you have you should be willing to negotiate if you really want to sell. Don’t be offended by a low offer. Someone is willing to buy your home and you should try and find a middle ground where you can both be happy. Often this is the opening move from a buyer to see how low they can get the home for. Show that you are reasonable and present a counter that may be accepted or at least countered by the buyer. Not responding to an offer or coming back with very little flexibility may lose you the only buyer in the market for a while.
Also, the longer your home stays on the market the lest you will probably end up getting. Homes that sell quickly On average homes that sell within 30 days sell at asking price or over asking. Those that sit on the market for over three months sell for around 7% less than asking.
A low offer is not an insult. It is an opening gambit. The next move is yours. Play it well.
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