Does anyone win with Lowball offers?

By
Real Estate Agent with Atlanta Communities 303302

Lowball offers are those that are significantly below the current list price of a home. Typical offers in my area run around 3-5% below list. Lowball offers are significantly below that. Interestingly, if the home is was over priced to start with, the really lowball offer might be spot on. But for this discussion, lets assume that the home is appropriately priced and the offer is 10% or more below.

I can tell you a common response from the seller is to not even acknowledge the offer, not even counter. They believe the potential buyer is just trying to "Steal" their home. I encourage sellers to respond with a counter no matter the offer price as this can and does lead to negotiations that could get the home sold.

Buyers who make lowball offers generally are not seeing the same value as the seller. They are looking at all the new paint, carpet, and other upgrades they will need to do before this home becomes "Livable" for them. The seller believes the home is great just like it is.

So, lowball offers seem to anger the seller, which is not a great way to start a negotiation, and the homes seldom sell for that lowball price. My thought is this, if the home you are looking to buy is priced reasonably well, but you need to make a very low offer, you might want to look for a home that better matches your needs. And sellers, ALWAYS counter a lowball offer. You never know when the resulting negotiations will get the home sold.

Posted by

Peter den Boer, Associate Broker, Realtor

Atlanta Communities Real estate Brokerage

 

Ph. 770.713.1545

www.denboerhomes.com

 

I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.

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Rainmaker
5,392,417
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Peter den Boer low ball offers are a thing of very distant past..... but have no fear, we will be seeing them again!!!

Mar 09, 2020 06:43 AM #1
Rainmaker
2,202,481
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Peter den Boer - you advice is right for both buyers and sellers. 

Mar 09, 2020 07:27 AM #2
Rainmaker
877,152
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

It depends on the property and it's price Peter den Boer We have a property my buyer client is looking at that needs MUCH work and the price it's listed for is way too high. Any offer we make will be considered a lowball offer even though it will be reflective of the of the worked that is immediately needed

Mar 09, 2020 08:02 AM #3
Rainer
437,305
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Realtor / Author / Advocate/Short Sale

HIgh percentage of low ball offers have been from investors ... usually when a Buyer is making an offer, they will not even bother with a property $15,000 and up over priced... they will wait for a property more in line with a 2-4% below list price.

Mar 09, 2020 10:25 AM #4
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Peter den Boer

MBA,GRI, Associate Broker, Realtor
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