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You’ve been searching for your dream home. You walk into a place that is perfect. The list price is high but you had stated this was within your budget. You tell your broker you are ready to make an offer and when you share that number with your...
You’ve been searching for your dream home. You walk into a place that is perfect. The list price is high but you had stated this was within your budget. You tell your broker you are ready to make an offer and when you share that number with your broker to their horror….you have decided to make a low ball offer! So now what? There are many buyers that think that offering a price that’s way low gives them a huge advantage? Are they right? We are going to unravel what typically happens with low ball offers, why they might sometimes work but the majority of the time they don’t and share how they received on the other side.
There is always a disconnect between buyers and sellers on price. Making a low-ball offer can damage your chances of being considered a real or serious buyer. In a very active market, which much of the country is experiencing right now, it could put you in a non-compete situation. If you really make a wildly low ball offer, a seller often won’t give you a counter which means you will be bidding against yourself which is never a position you want to be in.
Often we find, really low ball offers to mean that you will pay more at the end of the day. We have both seen buyers make lowball offers and wind up paying to ask. We have worked with buyers who lose property after property with low ball offers and at some point, we think maybe they should revisit their price point so that they can make offers that might work versus continually making unrealistic offers.
When the day count is high and the asking price is crazy that’s when a low ball offer makes more sense as then you can back up the offer with relevant comps. It doesn’t mean you will get it, but at least it can be justified.
When making an offer, you want to put your best foot forward and make an offer based on comparables. You’re trying to make a deal and a good deal is when both sides feel the deal is fair.
Any other questions? Reach out to us at www.therealestatebroadsofnewyork.com and please subscribe and download so that we can keep bringing you more great content.
You can also email us at deniseandsharon@compass.com.
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