In this market , it’s your game now Mr. Buyer. The offer that you decide to make only needs to make sense to you. Don’t worry about the thought of being rejected. The reason why, it doesn’t cost you a thing! However, an offer that doesn’t make sense to you could end up costing you a great deal of time and energy.
Problem properties usually can be purchased at great prices, terms or even both at times. When a property goes into foreclosure or has been sitting on the market for months, any offer may look reasonable to a seller. Especially if the property has developed a negative cash flow. The owner may have to pay a huge amount every month just to keep it. In this case, what would otherwise be an unacceptable offer might be honored. So don’t hesitate to make a low-ball offer!
Your offer is YOUR decision. Unless you’re making an ludicrous offer, don’t worry about it not getting accepted. Remember that the seller’s agent is trying to get the best possible deal for the seller, not you. At the same time, you have to keep in mind that the agent has a fiduciary responsibility to present your offer to the owner.
Like most people. you probably like to ask around for real estate advice from your friends and co-workers. I mean, who doesn’t like a friend's opinion? While it's helpful to listen to others, such as an attorney or Mr. Know-it-all, the offer is ultimately your decision. If they’re not heavily in the real estate investment game, then their opinion is as good as a donkey’s. YOU are the one making the offer and YOU are the one who will be making those payments every month.
Finally, when making your offer, keep in mind how your brain perceives things. When you go to the store and see something that costs $.99, it looks a lot more attractive than $1.00. The same goes for real estate. Keep in mind that $499,900 may seem to be a lot lower than $500,000 to a buyer. But what's a $100 in real estate? it's 60 cents a month on your mortgage payment. Your low-ball offer will also seem much more favorable to the seller using this technique when you offer $460,000 rather than $459,500. Thus giving you a much better chance of getting accepted!