Low Ball Offers
When the subject of selling your home to an investor comes up usually one topic leads the conversation. Why would I want to entertain an offer when they only offer low ball offers? This is a question that many homeowners ask and a stigma real estate investors try to shake. In this post I'm going to try my best to sell you on why low ball offers aren't bad for everyone.
First let's step out of the real estate world completely for a minute. Instead of real estate lets place ourselves on the car lot of your dreams in your city. You know exactly the make and model of the car that you are looking for. You've also researched and have a pretty good idea of the price range it's going to cost you. For the sake of this article, lets say the car costs between $80 - $90K. You want all of the bell and whistles that can be added but you don't want to pay full price.
You tell the salesman that you will take the car off the lot right now if he/she will accept your offer of $70K. You know the car is worth way more than that but you have no intention on making a full offer for the vehicle. You throw the first low ball offer out there in hopes of it being accepted. If it's accepted you get the car of your dreams for a discounted price.
Now let's go back to the real estate world. The mentality that you had on that car lot is the same mentality a real estate investor has standing in your living room. Their goal is to buy investment property's at a discounted price. Going out and making full offers on every home wouldn't be very profitable for an investor.
Homeowners always have the upper hand when it comes to negotiating the price for their home. They have the power to say they accept or reject any offer presented to them. If the offer gets rejected its now time to head to the negotiation table.
Not all offers will be accepted and investors understand that. When a low ball offer is presented to a homeowner please don't get offended. Instead, picture yourself standing on that car lot or making an offer on the facebook market. Are you making the full offer for that product or are you trying to get the best deal for your buck?