Real Estate Tips: Making the Offer
When buying a home, it’s often important to consider that the owner is probably at least in some sense attached to the property. And in most cases, home sellers believe their home’s value is higher than the market dictates.
So one big mistake home buyers make (especially first-timers) is presenting lowball offers. Offering to pay a price so much lower than the asking price that the seller feels insulted seems like a good tactic if you’re not all that serious about the property, but if you are and you really don’t want to lose that house or condo. That said, there is an art to lowballing. Do your homework and don’t make these mistakes when making a offer:
Not Knowing The Market: If you make an offer that is so low that none of the recent comparable home sales (or “comps”) justify it, your bid just may come off as insulting or fluff and you could easily ensure the seller cuts off communications and refuses to negotiate at all. Check the comps an make sure you can justify your numbers.
If you can show that a comparable home in the same area sold for an amount near your offer, you may be able to pull off your low ball.
Not Making An Uncomplicated Offer: If a homeowner is to make a big concession on their price, a buyer had got to give them a clean and easy offer structure so that they get something out of the negotiation process.
Don’t combine your lowball offer with overly complex terms. Make it clean an easy and give them something they can feel good about if you want them to swallow your offer.
Assuming All Cash Will Always Get the Job Done: Just because you’re offering all cash, doesn’t mean a lowball offer is going to be a slam dunk. While home sellers love cash offer, what they want most is the most for their property. If you’ve got competing offers on the table your lowball cash offer could be the first to get the boot.
Be careful and what those bids if you really want that home.
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