THE LOW BALL OFFER - Do you love them or hate them?

If you are a buyer, you want the best possible deal. Everyone has their advice how to get the best possible deal, but what is the right way and what is the wrong way?

As a buyer, your goal is to get the a property at the best price and terms possible. If you can get it under market value your are getting a "a deal" and will be real happy.

Some buyers and their agents use a "the low ball offer". By using this term, a low ball offer is when a buyer makes an offer "way" lower than current market value.
 
FINDING THE RIGHT PROPERTY


Before you can even make an offer, you need to find a property to make an offer on. The first thing you need to do is choose which properties to see then which properties to make an offer on. There are other buyers doing the same thing as you, if you have ever got out bid or lost a property by waiting, you know time means money.

DOING YOUR HOMEWORK

By doing some homework you can narrow down which properties to even make an offer on. If you plan on making a low offer, you need to know what properties may consider it and which properties can not be sold that low.

1. Ask the listing agent if any offer prices have been rejected
2. Check the tax card
3. Review the registry of deeds for what the seller owes

If the seller owes more than the offer you want to make, then chances are it will not be accepted. I will get into short sales later....

MAKING THE OFFER

All offers need to be in writing, do not make oral offers or offers by email, they are not binding. your offer needs to be on a standard purchase agreement, be accompnaied by a deposit check and include a preapproval letter or proof of funds letter if buying cash.

Your offer should be set to close within 30 days of acceptance and do not put in any additional contingincies. most often selelrs may accept lower offers for quick closings and no contongincies, that way they know the sale is guaranteed when they sign it

SELLERS REACTION.

There are different types of sellers. First if it is your average owner occupied property, You shoould know that receiving a lowball offer is often the most emotional thing that can happen to a seller. They usually feel insulted and some may refuse a counter offer. In this case if you really like the home, you will want to make another offer to them that is higher.

BANK OWNED HOMES

If you are making an offer on a bank owned home, you need to ask 3 questions:

1. Is there any other offer that have been submitted
2. Has the seller refused any other price and what was it
3. How long does the seller take to respond to an offer

If there are no offers you can make a low offer and try to steal it. If there are other offers you may want to make your best offer as you may not get a second chance.

Banks usually will not counter offer price, just terms.

make sure you include a preapproval letter or proof of funds letter, avoid any contingincies, try and avoid a home inspection contingincy, have someone walk through the house when you are viewing it, check everything you can see with your naked eye. Some banks will allow home inspections but the home is sold as is, so they wont disclunt the price or make repairs.

FOR MORE TIPS ON BUYING A FORCLOSURE: check out my blog

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_to_buy_a_for