In a buyer’s market, it is impossible to ignore even a single offer, even if it is 25% off the asking price. However, in the improving housing market of the recent months, such low-ball offers have not been working so well anymore. Homebuyers either receive a higher counter offer, or find that other buyers who were willing to pay more have bought the house.


According to a Florida Realtor Marine Matarese, fewer buyers are making such low offer in the area where she works. There are some who still come in, but they are mainly from other states or from countries where they have learnt about Florida’s foreclosures and short sales.

 

Even when a home seller does not reject a low-ball offer outright, the counter offer tends to be quite high, only a little bit off the asking price. An example is that of Olympia WA, real estate agent who had an offer of $150,000 against a listing of a $250,000 home.  After several rounds of negotiations with the buyer, the deal closed at $230,000.

 

So while low-ball offers may have worked well between 2008 and the beginning of 2011, in the current housing market they seem to backfire more often than not.

 

Source: Florida Realtors

 

Jennifer Cook, Raul Aleman and the entire Bahia Realty Group team of real estate professionals welcome the opportunity to speak with you personally to discuss how to help you find, buy or sell your Orlando home or real estate investment property; secure mortgage financing; or help you relocate to the Orlando area.  Please call 407-956-5443 or email info@OrlandoRealEstateLink.com for assistance.

Visit: www.orlandorealestatelink.com for a list of available homes in Orlando. We specialize in new homes, luxury properties, condos, villas, gated communities and homes with pool. 

We also offer full service property management for Orlando.

Spanish site is also available: http://www.casasorlando.com/.

 

 

4 Comments on Low-ball offers are no longer effective

MAY
16
2012
535,883 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I just submitted a 50k dollar offer on my 96k dollar listing. Can't wait to see how quickly it will be rejected!
7:42am • #1
655,895 Points 2 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Low offers do not usually end with the buyer getting the property at a low value.  Often they end up paying more.
7:59am • #2
225,658 Points 4 Featured Posts Outside Blog Called Shot Master

Your right - it's tough to get a highball offer accepted these days!!
8:02am • #3
348,527 Points 29 Featured Posts Outside Blog Called Shot Master

Low ball offers were never really accepted here in NJ - and often the seller gets so angry that they won't even negotiate with someone who submitted a low ball offer. While that's always been the case, the definition of low ball offer (is it 10% less than asking or 30% less than asking) has changed a bit. Now I'm finding that even 3-4% below asking are getting rejected without negotiating.
8:07am • #4


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Jennifer Cook

Orlando, FL

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