3 Tips for Making a Reverse Offer

An underdog idea for selling a home is getting a lot more interest lately. Usually, a purchaser makes an offer to a seller. However, the reverse offer is being seen with increased regularity.

There are a couple of prime scenarios when a reverse offer may be used. For instance, if your home has been on the market for a while with lots of showings and open houses, you might want to ask your agent to go back to the salespersons of potential buyers and present an offer to them. In another case, your salesperson could contact the agent of a buyer who seemed interested—someone who perhaps had a look at your home a few times, but has been hesitant in making an offer.

A reverse offer shows the seriousness of the homeowner’s intent to sell, as it is often lower than the original asking price. A reverse offer may also include things to sweeten the deal, such as appliances or TVs. The seller may even be willing to pay fees associated with the transaction, such as the buyer’s lawyer costs.

Here are some tips for making a reverse offer:

Make the response time short. You want to get the would-be purchasers to respond to a reverse offer as soon as possible, so don’t give them days to make a decision. A day or two is ideal to create a sense of urgency. If you’ve presented the offer to more than one buyer, all parties and their agents should know about it, and everyone should be aware of the fact that the first to accept the terms will get the house.

Sellers facing lots of competition should consider reverse offers. If your home is identical to other homes for sale in your neighbourhood and listed for around the same price, you’ve likely been thinking of ways to make it stand out. A reverse offer may elevate your home in the minds of potential purchasers, putting it ahead of others in the same mix. Again, a reverse offer may create a sense of urgency in a buyer.

Ask your agent to check on a buyer’s agent for someone who has seen the home repeatedly. Critics of the reverse offer believe it may create a sense of desperation regarding the seller, but that doesn’t need to be the case. It may actually show a buyer that you’re motivated to sell. So, by asking your salesperson to contact the representatives of buyers who seemed very interested, yet hesitant to make an offer, you may be able to garner what the problem is and present them with a reverse offer that addresses any issues. Serious buyers will more than likely be surprised that you’re willing to help them solve any issues that have kept them from buying your home.