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Rethinking Your Offer Strategy

By
Real Estate Agent with Dirt Road Real Estate SA676002000

Funny thing, just this past week I received a very lowball offer for an off grid residential property. The potential buyer shared he had done his research and four years ago the sellers paid this amount.  So he offered about $10,000 over what the current sellers paid.

When the potential buyer and I spoke, I shared the sellers had made considerable investment in upgrading the solar system including a new inverter, new batteries and new solar panels. Additionally other improvements had been made, plus residential property values continued to increase.

As a REALTOR®, the Code of Ethics obligates me to protect and promote my clients. Since this offer included a contingency addendum, I undertook additional research to better understand the 90 day contingency addendum.

I discovered the property the potential buyer had listed in another state. This property was not a residential property, but rather a very unique commercial property listed for over a million dollars that had been on and off the market for the last several years.  NOTE: The buyer's agent failed to included the listing contract for the buyer's property that is expected to be included with the contingency addendum.

In reviewing the offer, there were many issues from the potential buyer including a 90 day contingency addendum.  I printed out the entire offer, highlighted my concerns, re-scanned the offer with the highlights and then summarized those concerns on another document.

The sellers and I had a frank conversation and the lowball offer was rejected. Also, the sellers directed me to share their concerns about the offer in writing (via email) with the buyer's agent. Also, the sellers shared that they appreciated my review of the offer and the summation I included.

As this buyer had done his research and decided to make a lowball offer through his buyer's agent, he failed to realize the sellers through their listing agent can also carry out similar research. His offer strategy was viewed as rather insulting and the additional "requests" within the lowball offer were like rubbing "salt into the wound."

It's true that the market is cooling, but it's still a good idea not to lowball sellers on your offer. Most sellers know what their home is worth and don't want to waste time haggling. Going in with the highest and best offer right off the bat can help set you apart from other buyers. Of course, working with me is the best way to set you apart and give you the best chance of snagging your dream home.

#thehelpfulagent #home #houseexpert #house #listreports #homeowner #a041625 #realestate #realestateagent #realtor #themoreyouknow #icanhelp #househunting

#LetsGetBackToRealConversations #WeDoThingsDifferently

Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.

Feature Photo Courtesy of ListReports.com

Any reproduction of Leanne M Smith’s blog for use by any AI or GAI, distribution or reproduction including but not limited to electronic newsletters e.g. PDF’s Internet sites or physical products e.g. newspapers, CDs without prior written permission and consent by me, Leanne M. Smith (Leanne Hoagland-Smith) is strictly prohibited.

Posted by

Leanne M. Smith, MS, GRI, rCRMS

2018 KGVAR Rookie Realtor of the Year-55+
219.508.2859 MST
Life Begins Where the Pavement Ends
Connect with me on LinkedIn:
http://www.linkedin.com/in/leannehoaglandsmith

Comments(5)

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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Some people don't have a whole lot of good sense. Just because people have a reason why they want to sell doesn't mean they're desperate to get rid of their property and willing to take a big loss.

Apr 16, 2025 03:06 PM
Leanne Smith

Isn't that the truth? Thank you and good evening.

Apr 16, 2025 05:52 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Leanne - there are more than a few red flags waving in the scenario of the lowball offer.  

Apr 17, 2025 03:43 AM
Leanne Smith

In this case numerous red flags. Thanks for the stopping by and offering your sage advice.

Apr 17, 2025 11:04 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Leanne,
Oh My. Where do I even start with this?

This used to happen more often before prices skyrocketed, buyers assuming a property's value should somehow relate to what the sellers paid years ago. That kind of thinking ignores market appreciation, improvements, and overall demand.

It also sounds like the buyer’s agent may have written the offer without doing much research to offer solid guidance to the prospective buyer. As professionals, I believe it's our job to advise our clients, not just pass along whatever they want to offer.

And adding a 90-day contingency to a lowball offer? That takes the offer out of the gutter and puts it right down the sewer.

 

Apr 17, 2025 05:34 AM
Leanne Smith

In this case, the buyer's agent was the daughter of the buyer and from the central part of the state.  I agree about the 90 day contingency. Thanks for sharing your experience.

Apr 17, 2025 11:06 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Leanne Smith - I will never understand the strategy of evaluating what a seller paid for the home they are selling.  The Buyer was poorly represented. 

The Seller was exceptionally represented. 

Apr 17, 2025 08:43 AM
Leanne Smith

Neither will I and such offers often insult sellers.

Apr 17, 2025 11:06 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

FEATURED IN CRAP-TACULAR

 

Mr. Crappy Says

Flush Low Ball Offers!

💩💩

💩

 

Apr 17, 2025 08:45 AM
Leanne Smith

Thank you for the feature and I agree about flushing low ball offers.

Apr 17, 2025 11:03 AM