Everyone wants a good deal on a home, but making an offer that is too low can get you axed by a potential seller. There are times when you can leverage your position and ask for a low price, but you need to know when you are able to do this.
- For starters, figure out what type of property you're working with. Is it a short sale? A bank loan? A distressed property? (A distressed property is when the seller is behind on their mortgage payments)
- Next, find out what the competition looks like. If the property is hot and receiving multiple offers, your lowball offer will immediately be thrown off the table and you will be forgotten about. It's important to stand out to the seller, but not by offering a low price. If you want to go lower with an offer, make sure you have a valid reason for doing so.
- Do your Research: Scour the area and figure out what similar homes sold for. Also, look at current listings to find what active listings are going for on the market. Appraisers look at these types of numbers to determine value, and you have access to these same resources as they do. (Our buyer agents at Team Lally are experts with this and can be very helpful with this step)
- Include a Pre-Approval Letter: This will signify to the seller that you will be able to pay for the home, and that you are very serious about purchasing it. Most sellers will not even let you in the front door if you are not pre-approved or do not have proof of funds.
Hopefully this information was helpful to you, but if you have any further questions or are looking to buy or sell in Hawaii, then please contact us. You can reach us at (808) 799-9596 or visit our website:www.TeamLally.com
Also, don't forget to catch our radio show, theTeam Lally Real Estate Show - Home of the Guaranteed SOLD Program or We’ll Buy It - every Saturday at 11AM - 12PM on KHVH 830 and KIKI 990. If you are interested in learning more about buying or selling real estate in the Honolulu area we have a free book available online. To receive your free book please visithttp://www.teamlally.com/book