6 Tips
With the summer season over and the holidays quickly approaching some sellers are more anxious to sell their homes, as others will wait for the spring season to come around.
The key to making a great lowball offer is to look for homes that have been on the market for an excessive amount of time. The softer the market the more likely the seller will consider the offer.
Buyers can make serious mistakes when making a lowball offer.
1- Before submitting an offer, your realtor should have done a full comparative market analysis of the area the home is in. Some areas are still in seller's market mode and the homeowner will not consider a lowball offer, but if it is in a buyer's market area with too many days on the market, this is your chance to try. Some seller's may try to hold close to their asking price because they know buyers are aggressively looking due to low interest and increasing volumes of property available.
2- Not picking the right realtor can really hurt your chances. Some agents may tell you not to make low offers, as to not offend a seller. Some realtors skills may not be up to par and they may not make aggressive offers. Feeling they that their commission is more priority over making the best deal. On properties that have been overlooked and lack desire, bidding low may not hurt.
3- Not backing up your price. Your realtor should present your offer with full details, including market comparables. Seller's want to know why you are coming in low, just don't be harsh on your critisms.
4- Not knowing what you are willing to pay. Make sure you have seen a lender (if you want to finance) or have proof of funds (if you are paying cash) to be sure what your maximum price is. Do not start with your 1st bid as your maximum, leave some room for negotiation. Also, never say your 1st offer is highest and best and then allow negotiation, that is how you lose your credibility.
5- Not making a clean easy offer. When you make a low bid, you want the other details of the offer to be appealing to the seller. And a deal that can close quickly often will have appeal. Make sure there are as few contingencies as possible.
Also make sure your finances are in order from the start. If you are financing make sure you have a pre-qualification before you start your home search.
6- Assuming cash will always get you the best deal. Money isn't always a deal maker. The home owner is essentially looking for the most money possible. If the seller is a bank because the property is a foreclosure, they may accept a lower offer from a cash buyer, as opposed to someone who needs a mortgage because a bank doesn’t want to deal with mortgage-related delays.
That being said remember the most important key factors to successfully purchasing a home is having your lender or finances secured, having a realtor who knows the market in your area and making a clean and easy offer.
To search properties in Westchester/Bronx counties visit my website @ www.FreeNYHomeSearch.com
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