Typically sellers put their home on the market and wait for buyers to submit offers. If you’re selling a home and have trouble finding a buyer, you don’t have to sit and wait for an offer to come along. In the right set of circumstances, a seller can make a direct offer to a buyer who has viewed the home. This is known as a reverse offer. How does this strategy work?
When a buyer has shown interest but has not submitted an offer, the seller can make the offer to the buyer instead. Listing agents typically receive both verbal and online feedback from buyers’ agents with each house showing, so they will know who had interest but didn’t pursue an offer. While some may fear a reverse offer will signal a desperate need to sell, it really is a move that shows you’re motivated and willing to negotiate. Interestingly, builders often make reverse offers to engage buyers and get the negotiation process underway. But as a seller making an offer, you’ll have to do something to sweeten the pot to gain the buyer’s engagement. This may include dropping the price, paying for closing costs, or remaining flexible on closing and move-out dates.
Favorable Circumstances for Reverse Offers
∙ Maybe you live in a neighborhood with a lot of seller competition. There’s plenty of foot traffic, but no offers. This might be a good time to have your agent contact one of the buyer’s agents who expressed favorable opinions of your home or viewed your home more than once. Consider a reverse offer that incentivizes the buyer.
∙ You’ve had 10 showings and no offers. Re-evaluate how your home fits in the market. Reduce the price 3 to 5% and consider making a reverse offer.
∙ You’ve been on the market 30 days with few showings and no offers. Re-evaluate market conditions. Reduce the price 3 to 5% and consider making a reverse offer.
∙ The latest buyer who viewed your home expressed interest but is choosing between your home and another home. A reverse offer engages them to consider your home more seriously.
∙ Your listing agent learned the buyer feared you wouldn’t budge on price, so he didn’t submit an offer. A reverse offer lets him know you’re willing to negotiate.
∙ A buyer expressed very favorable opinions about your home but wanted to see a few more properties. The reverse offer engages them to consider your home more seriously instead of moving on.
A reverse offer strategy can be successful under the right conditions. Make sure your agent is keeping in contact with agents of buyers who expressed even a “somewhat interested” opinion of your home. Often times you’ll get even more information about the buyer that allows you to make a strong offer. Be aware, however, that your home still needs to be priced right according to market conditions and the condition of your home. And even with a reverse offer, the buyer can make a counteroffer.