Are You Writing A Low-ball Offer On A Home?

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Are You Writing A Low-ball Offer On A Home? How to Avoid Insulting a Home Seller

 

 

Lowballing 101: How to Avoid Insulting a Home Seller when Making a Low Offer for Their House or CondoBuying a home is a huge step for people who are ready to make an investment in their future. Getting a great deal on a home is just as important and knowing how much to offer could be confusing. It is important to make sure the home seller is not insulted by the low-ball offer and is ready to negotiate to make sure everyone wins.

Make a List of Necessary Improvements

One of the best ways to validate a low-ball offer on a home is to list improvements that need to be made to the property. If the home needs a new roof or a new heating and air conditioning system, these are reasons to offer less than the asking price. Sometimes a home may also need new flooring, paint, or matching appliances which all cost money. The buyer can make a low-ball offer stating additional expenses of making sure the home is move in ready.

Explain Any Issues with the Location

Another option when considering a low-ball offer is to point out problems with the location. If the home is on a busy street or close to a manufacturing district, the buyer has legitimate concerns. In the offer, list the potential problems of living too close to fast food restaurants, train tracks, or airports. A less desirable location could equal a great buy on a new home.

Provide Pricing for Comparable Homes in the Area

A knowledgeable real estate agent can help compare homes that have sold in the area. When you are writing up a lowball offer, look at the lower priced homes that have sold in the same neighborhood. A seller will quickly realize that if he wants to sell the home, he will need to accept a reasonable offer or risk letting his house sit on the market for weeks or months.

Consider the Seller’s Reasons for Selling

Finally, the seller’s situation can also be key in getting a good deal on a home. If the seller is desperate to sell because of a job relocation or if he has already bought a new home this can be the perfect reason to make a low offer and take the home off the seller’s hands. Without insulting the seller, the buyer can make an offer for less than the asking price and agree to a quick closing.

If you are in the market for a home it is important to have a great real estate professional on your team.  Be sure to reach out to the Mark Taylor Team at 602.361.0707 or by email at mark@awesomerates.com  We have a list of agents that we have worked with that will take great care of you. 

Thanks for taking the time to read, comment and re-post today's blog on:

Are You Writing A Low-ball Offer On A Home? How to Avoid Insulting a Home Seller

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Re-Blogged By Re-Blogged At
  1. Will Nesbitt 08/22/2014 03:19 AM
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Rainmaker
792,556
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Agent

I've never written a low ball offer unless I had the data, closed sales and absorption rates to back up why the offer was what it was.  The sad reality is that most of the time price can be defended by numbers.  Giving someone what they consider to be a low ball might be market price plus a value adjustment because the market can go down.  Trust me, when I turn in an offer and there's several years of inventory on the market I want the seller to know and understand that they could actually have own that property several years if they don't sell for what the market will bear.

Aug 22, 2014 12:50 AM #1
Rainer
233,826
IRMA Beltran
Century 21 M & M and Associates-Turlock homes Real Estate - Turlock, CA
Your Real Estate Agent 4 Life Always there 4 You!

Great blog, I agree You can't write a low ball offer without supporting it.

Have a Great Blessed Day!!!!

Aug 22, 2014 05:50 AM #2
Rainmaker
350,491
ReadySetLoan Condo Approval Team
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Specialists

Hi Mark - this is great advice to "soften the blow" of a low offer.  The truth of the matter is that homes typically sell for what they are worth.  And an issue with sellers is the emotional connection.  If home sales were treated like business transactions devoid of emotion, low-ball offers would not be insulting.  Since that isn't the case, people would be well-served to follow the advice that you outline here.

Aug 25, 2014 11:50 PM #3
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