The Psychology of the Low-Ball Offer in 2015

Reblogger
Real Estate Agent with Real Estate Solutions 2002018857

I left this blog open in a tab on my computer for 2 days debating publishing it to my Facebook- I decided against it since it may offend one of my current clients and that is not my intention.  but I am re-blogging it so I can publish it to Facebook later;) 

Original content by Jenna Dixon GA BrokersLicense# 277342

Low-ball offers are nothing new in real estate.  Buyers and sellers have probably done this dance since Low Ball Offers in Cobb County Real Estatethe dawn of time. 

As a buyer in 2015, you need to be aware of some things that you are communicating to the seller with your low-ball offer:

1.  I'm a first time buyer and I don't know what I'm doing.

 
2.  I wanted to buy a house in 2009 but I didn't have any money then.  I'm hoping that you are as desperate now as you were then.


3.  I don't have enough money or credit to buy your house anywhere CLOSE TO THE ASKING PRICE.  Even if we reach an agreement, I still may not be able to close.


4.  I am not listening to the advice of my buyer's agent.  This won't be the last time either, wait until you get a look at my Repair Amendment!


5.  I've made MANY MANY OFFERS on other homes that I cannot afford in search of someone willing to MAKE MY DREAMS COME TRUE.

The 2015 Cobb County real estate market requires that BUYERS PUT THEIR BEST FOOT FORWARD in the initial offer.  It is paramount if you are serious about buying a home in nearly any price range. 

Cobb County homeowners are pricing their properties competitively and are receiving multiple offers in a very short amount of time that lead to closed sales within 95-98% of their asking price. 

While the LOW BALL BUYER is busily crafting numerous counter offers, another SERIOUS BUYER often swoops in with a great offer, close to asking price, clear of special stipulations, a short due diligence period and a respectable earnest money deposit.

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Jenna Dixon
Associate Broker
DRA Homes

Buy Cobb County Homes
JennaDixon@Outlook.com
(770) 374-4230

Fair Housing Act

DRA Homes - An affiliate of Maximum One Greater Atlanta Realty
5041 Dallas Highway, Suite 700, Powder Springs, GA 30127
Office Phone: 770-919-8825 ext. 318

 

 

 

Comments (12)

Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

This is a tough one. I usually look at the reason the buyer wants to lowball...is it because they got beat up on the sale of their home? Is it because they put in 5 offers and will only jump until they get one way below value. I will not work with a buyer who wants to put in offers on multiple homes (unless they intend to buy multiple homes). GO METS!!!!!

Oct 27, 2015 12:28 AM
Shanna Hall

Jeff- It is really hard to click that like button when you end your comment with Go Mets...  I am cheering for the Royals;)


They want to low-ball because they want a house that would fall in the 250+ range and they only want to spend 230,000...

Oct 28, 2015 08:47 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Thanks for the re-blog, Shanna.  I never worry about offending.  LOL!  

Oct 27, 2015 12:42 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Shanna Hall, what a great re-blog.  I have a buyer now that keeps wanting to low ball every offer and wonders why she has not got a house yet.

Oct 27, 2015 12:53 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Put it on Facebook!  If it offends someone then they are probably a low-ball offerer waiting to happen and maybe you'll save yourself or some other poor agent the time wasted. 

Oct 27, 2015 01:42 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I got one last month...Uncle charlie told me to low ball.

Oct 27, 2015 07:56 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Shanna, great post to re-blog, and one we have all experienced.

Oct 27, 2015 11:10 PM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Shanna, this is a great post to reblog, and I will go comment on Jenna's post too.

Nov 02, 2015 11:41 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I was looking for a new post to read.  What's new in your market?

Nov 05, 2015 09:15 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I hope to see a new post here pretty soon, what's new in your market?

Nov 07, 2015 09:17 AM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Been there with buyers and sellers dealing with low balls.

BTW Thanks for following my site.  I just returned the compliment.

Jan 04, 2016 01:05 AM
Dana Hollish Hill
Hollish Hill Group, JPAR Stellar Living - Bethesda, MD
REALTOR * Broker * Coach

You make some good points, but there are times when the seller may think you are low-balling, but they have VERY unrealistic ideas about what their home is worth. It's important for BOTH parties to take a moment and try to figure out what to do next. 

Jan 10, 2016 12:08 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

If I do not have any other offers, I'll definitely suggest a seller to counter. At least, I'd try to discuss the situation with the agent and to see where their the very best terms.

Mar 15, 2016 04:48 PM