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Mistake #7: Making Low-Ball Offers to Score a Bargain

By
Real Estate Broker/Owner with MBA Broker Consultants CalBRE Broker #00983670

We’re going to review some of the common mistakes that first-time buyers make, and we’re going to show you how they can ruin your opportunity to buy your first home. How to avoid those types of blunders? You'll find out in our HousePro Academy online course, Home Buying 101.

MISTAKE #7:  Trying too hard to get a bargain

The seventh mistake some buyers make, is trying too hard to get a bargain.  You want a bargain, don’t you?  So do I!  Who doesn’t want a bargain?  We all like bargains!  But we don’t want to try too hard by offering the seller an extremely low offer price.  That can spoil the deal for you.  Sellers often are particular about their house, and when they get a low offer, the seller is offended and ignores the offer.  They won’t even reply back to your offer and because they take it personal, they’ll probably reject any future offers you make.  Remember that the sellers have probably lived in their home for many years, raised their family in the house, and they are proud of it.  So we don’t want to insult the seller by making a low-ball offer.  When you write your offer, make sure that you’re fair to all parties and most importantly, you want everyone to feel like it’s win-win.  And that’s really the best way to get a bargain.  When you offer a fair price and treat everyone with respect, I guarantee you’ll get a great deal and you’ll be happy with it.

Here's other common mistakes that you DON'T want to make:

Stay tuned for our 7-part series!

Regina P. Brown
Broker / Trainer
California Coast & Country Homes, Inc.

Posted by

Regina P. Brown
Broker, Realtor®, M.B.A., e-Pro, GREEN
California DRE # 00983670
www.CalCoastCountry.com

                

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Marianne Infusino
RE/MAX HomeTowne Realty - Franklin Lakes, NJ
RE/MAX - FLOW Area - 201

I agree ... First time homeowners generally hear stories of bargains ... on homes that were overpriced in the first place ... and its wise to educate them as you are showing the houses ...  And naturally, dont waste your time taking ANYONE out, unless you've had them pre-qualifed in the first place!!!! 

Mar 27, 2012 05:19 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Marianne, that's a good point!  I used to get HUD leads and all of the buyers wanted a "foreclosure" which they thought was a bargain (ha ha) and they wanted to buy it for half off!  I had to set them back to reality.

Mar 27, 2012 05:22 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I know a number of buyers that probably should be following your blog (or it might make them angry, because they may see themselves in your insights.)

Mar 27, 2012 10:25 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Regina, the attitude generated into the seller with such low ball offers is hard ball. They won't even come much off their asking price sometimes after that happens.

Mar 27, 2012 12:30 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Melissa, I think we've all had those clients, right!

Gary, yes I think that low-ball offers to get a great bargain often have the opposite effect!

Mar 27, 2012 04:19 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

I did not even want to read your post because I am living this with at least 3 of my buyers right now. I have written so many offers just to have them rejected.  Low offers are killing us and some of the offers are just below listing and we are still beat out of the game.  Right now if it is not above listing price it is not going to be yours.

Mar 27, 2012 10:02 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Stella, here in CA we are also experience a lack of inventory.  The banks' shadow inventory is squeezing a little too hard, almost an artificial inflation.

Mar 30, 2012 02:22 PM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA
Good advice. Appeal in some way to the seller (price, personal needs, positive comments, etc) and you may get your bargain!
Mar 31, 2012 12:19 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Joy, that's a good point.  I find that owner-occupant buyers are often outbid by cash investors.  So sometimes I'll help my buyers write a nicely-worded letter to the sellers.  "We love your beautiful home and we promise to maintain it in good condition.  We are first time home buyers and excited to purchase our very first house!  Our son Jimmy has been begging us for a dog for the past 2 years but our landlord didn't allow dogs.  When we viewed your home, Jimmy got excited and wanted to move in right away so he could finally get his puppy and play catch in the back yard.  We really, really want to buy your home and we hope you can strongly consider our competitive offer."

Mar 31, 2012 02:35 PM