May 24, 2024


Mad about real estate

Low-ball Offers: Is It Right to Even Attempt Them

In making an offer, it is important to seek the help of your real estate agent. You want to make sure you do it right, so that there will be no delays in terms of approval. The offer you make should be something that would entice the seller. Even if the price is lower than their asking price, it should be sweetened in many ways. You also need to ask their help because real estate transactions always have their legal side. Therefore, if you want to be protected, your offer should be done with proper legal considerations. 

However, buyers are normally faced with the question if low-balling is a smart thing to do. In general, these kinds of offers are considered inappropriate. For one, no seller would want to loose that much money just to sell the house. If the property is a hot item, it would definitely absurd to make an offer which 10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} percent below the asking price. In fact, sellers in a booming real estate market or even selling upper-end homes would generally be in a good position to name their price. 

In a condition where the real estate market is fair and if the house sold is also in a fair condition, it might be best to avoid low-balling. If you ask why, here are the following reasons: 

1. Based on experience of several real estate agents, buyers who made low-ball offers ended up losing a bid and being rejected. They say 80{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} who did this were unsuccessful. Who would be crazy enough to accept low-ball offers if the seller knows there are other buyers out there who are willing to pay within 94-95 percent of the asking price? 

2. Low-balling creates a negative impression among buyers. Sellers would hesitate to transact low-ballers because they will perceive them as people who is a lose win negotiator. They may get the impression that this particular buyer would want to walk away winning every step of the negotiation and will certainly leave the seller with nothing. 

3. Low-ball offers that are accepted may not be a good thing for the buyer. Some experts believe that houses acquired at a significantly low price than its real value would have a negative impact on the neighborhood’s real estate market. Sellers accepting low-ball offers, when in fact it should not be, might lower the value of the homes within the neighborhood. Remember, the house sold can become a comparable item for making CMA’s. New sellers would consider the selling price of your home so that they can name their price tags. Moreover, buyers use them to lever their offer. If you sold it cheap, future offers for the home will also be within the range price of your acquisition. 

But there are also instances where you can get away with low-balling. First, if the property is in a bad location, there is a possibility that the seller will consider it. Second, if the property is in need of total repair, for sure sellers would not be able to sell the house without lowering their price. Third, if the house has been sitting on the market for a long time, then may be you can attempt to offer a price below 10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} the asking price. 

To determine how to make the best offers, it is important that you educate yourself. Learn more about the market and seek the aid of your agents.