Are Low-ball Offers Insulting to Sellers? How Many Low-ball Offers Before You Stop?
By Beth Atalay
Real Estate Broker/Owner with Cam Realty and Property Management
No matter what type of real estate market and the price range, every home buyers want to get a great deal with the purchase of their home.
What is a great deal? It’s not always paying less than fair market value. If you find a home that checks off all the items on your list and priced fair, then it’s a great deal.
It could also be a great deal if it’s priced under market value!
It’s a great deal to actually find a home in a seller’s market where inventory is low with high demand. So, great deal may mean different things to different people.
If you are a home buyer in an area with low inventory, your low-ball offers is a great way to kill any future deals. If the house you’re interested in is priced well, in great condition, getting activity, why would the seller accept your low-ball offer?
There are many buyers in Clermont FL area who are not in touch with reality of the market and don’t realize the market has changed in the favor of sellers. Buyers who are working with knowledgeable Realtors know the winning strategy. Make an offer that sellers can’t refuse!
How do you know your offer is a fair one and you’re not leaving money on the table?
-Have your Realtor® check comps to see what has sold in the immediate area within the past 30/60/90 days as well as active/pending comps. In extreme seller’s market, your Realtor® may need to search as far back 12 months.
-Learn about the market conditions of the area before you present a low-ball offer. For instance, Clermont FL home prices have increased 9% over the past 12 month period. REO/Bank Owned and Short Sale listings have declined a great deal, as a matter of fact, they don’t exist in certain market segments.
-Have a reality check. Are you really looking to buy a home or just feeling to see if you can find that one seller who is desperate enough to accept your low-ball offer? Are you taking advice from friends and family members who have no idea what the real estate market is like in the area you’re looking to buy? Are you looking at homes you can not afford?
When you are getting ready to make a low-ball offer, keep in mind that sellers are also looking to walk away with some money in their pocket. Aside from that, most are still emotionally attached to their home so seeing a low-ball offer may actually insult them. Some may counter back, some may just reject the offer. Then what? If your offer is rejected, do you then go up in $5000.00 increments?
If you are a home buyer, listen to your Realtor® as they are on your side. They don’t want you to lose out on the home you want to own.