Home : Blogs : Rich Kruse : Rich's Thoughts on Things

Tips For Making Low Offers

If you are from Mars or something you might not yet know it, but it is a buyers market in Columbus, Ohio. Unfortunately it is a buyers market where fewer buyers have much money for closing costs, etc. Due to this, we are seeing a lot of very low offers that include 3 or 4% in closing cost help.

If you are a buyer that wants to take advantage of today's market and want closing cost help please consider strengthening your offer in other areas.

Consider these points:

•1. Make the deposit a little higher if you can.

•2. Offer to let the listing agent hold it (good will)

•3. Keep inspection times and request to remedy times as short as possible

•4. It is suggested that you have your attorney look at contracts, but please have this completed in a few days, not a few weeks.

•5. Have your loan approval completed, subject to appraisal, and try to make this period short too.

Please remember that a seller may consider taking a lower offer, but this is a give and take proposition. If you get the lower price, what are you giving in return? My suggestion is to help the seller rip off the band aid by making the deal move quickly.

Buyers agents, please read through the remarks and talk to your clients about those remarks before submitting offers. If in doubt, please call the listing agent. For example, if the remarks say "Bank Owned and Selling As-Is", it might be a waste of time to negotiate the request to remedy timeline. Also, the remark that all offers are to include proof of funds letter wasn't put there just so we could fill the space. The seller really wants one. Not only does the seller want the letter, he would prefer it is not more than 30 days old and coming from a reputable (known) lender.

Recap - It is not bad to offer an amount lower than asking but if you do, 45 days for inspections, 15 days for attorney review, and a pre-qual letter from JimBob's Loans written on a Denny's placemat in December of 2006 is not going to help you get the home.

On the other hand, maybe I'm the one that doesn't get it.......

Posted by Rich Kruse on 10/09/2007 04:48 PM

Comments (12)

tips, home buying, low offer, loan approval, closing costs, cloumbus oh, ohio

12 Comments on Tips For Making Low Offers

good info... especially about the mortgage

I am getting a lot of low ball buyers who are forcing the issue with the mortgage - not even applying until after the contract has been signed

that means a lot more work and faster for me.

I don't mind quick closings at all... but if you are trying to make a deal, doing your homework first will definitely make it work better!

10/09/2007 05:01 PM

by Boca Raton Florida & Boynton Beach Florida Mortgage Loans

Good Point Rich....I especially like the "Rip off the band-aid" line..........even if the seller is willing to accept "bottom dollar" it is going to hurt............I never heard that line so I have to give you a 5 for this one........

10/09/2007 05:07 PM

by Bruce Miller-Realtor® (RE/MAX Town and Country)

Oh Rich, this is good advice to all of us. Thank you so much !

10/09/2007 06:06 PM

by Missy Caulk Ann Arbor Real Estate (Keller Williams Ann Arbor, Michigan)

JimBob is licensed in Ohio too?

- James

10/09/2007 06:13 PM

by James & Ely Malanowski - REO Agents - Palmdale, Lancaster, Rosamond, CA (Coldwell Banker - A Hartwig Co.)

Actually, Rich, that was surprisingly sober. The last sentence was great, but other than that, you were very helpful.

10/09/2007 08:05 PM

by John Evarts (Classic Property Management of Santa Clarita)

Where's evil Rich today? This was way too helpful and seriously lacking in attitude.

10/09/2007 08:39 PM

by Lisa Hill (Daytona Beach REALTOR®) (Adams Cameron and Company)

RIGHT ON RICH!!! That's exactly how low ball offers should be executed!

super Kruse

10/09/2007 09:28 PM

by Rick & Ines - Miami Shores Real Estate (Coldwell Banker)

this is so right on when it comes to low offers - thanks for sharing

10/10/2007 12:28 AM

by Central Oregon Real Estate | Thesa Chambers, Broker (RE/MAX Sunset Realty La Pine)

Rich

ever feel "close" with the quotes below

猫に小判 neko ni koban - literally "gold coins to a cat" is an idiomatic Japanese proverb with the same meaning as "casting pearls before swine" (豚に真珠, which is a translation of "pearls before swine," is commonly used as well.)

bandar kya jaane adrak ka swad... - literally "Would one expect a monkey to appreciate the taste of ginger..." is an idiomatic Hindi proverb with the same meaning as "casting pearls before swine"

"eşek hoşaftan ne anlar.." - literally "an ass does not appreciate fruit compote.." is an idiomatic (Turkish proverb) with the same meaning as "casting pearls before swine"

对牛弹琴 duì niú tán qín - literally "play music to a cow" is a Chinese chengyu (four-character idiom) with a similar meaning to "cast pearls before swine"

Perler for et svin Peerloer fur iet swine - Literally "Pearls for a swine", Danish and not so common expression. Basically means that you shouldn't do anything for people that they don't/might not appreciate.

10/10/2007 11:07 AM

by Jeff Tumbarello (Network Funding Solutions, LLC)

Nahhh... I'd say you get it for sure.

10/10/2007 07:07 PM

by Fran Gatti - Crescent City CA Real Estate (RE/MAX Coastal Redwoods)

Rich,

I love it! Great advice.

Back when the selling agent presented his own offers to the owners and listing agent, I once took $10,000.00 in twenty dollar bills to a presentation. I asked the sellers if we can come to a deal would they accept a cash deposit. Then I took almost an hour counting out the cash on a table between us.

I'm not sure the sellers even thought about the buyers offer. They were salivating over the cash, like Pavlog's dogs. They signed the offer. When I ask the listing agent (who I knew well.) to sign a recite for the cash, he freaked. When he pushed the cash into his brief case the sellers cried. They thought I was going to leave it. As I was leaving the lister ask why I left him the cash. I told him I wouldn't carry cash after dark in that nationhood, he may have spent the night.

Damn good advice, give the seller everything you can that doesn't cost much. Make sure the sellers know how they WIN!

Bill

William J Archambault Jr

The Real Estate Investment Institute

First National Mortgage Sources

10/15/2007 07:55 PM

by William J Archambault Jr (The Real Estate Investment Institute )

Rich-

Thats great. Love the humor and good advice. Sadly; some listing agents won't deal at all. Then 2 months later they reduce the price to the amount you offered 2 months ago. Bummer ...

10/16/2007 02:11 PM

by James Downing - REALTOR® - Washington DC Real Estate (Coldwell Banker Residential Brokerage)

Leave a response…

Name:

Notify me of new comments:

Comment:

What does the graphic say?