How to Make Lowball Offers on a Home

Dated: 06/04/2019

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Are you thinking of an offer for lowball? Buyers who are fortunate enough to shop in the industry of a buyer for a home are in the enviable situation of being more probable than not to have accepted a lowball offer. Homes are rapidly selling in seller markets, and as there is little inventory or competition, a lowball offer is hard to negotiate.

Common Mistakes Buyers Make: Buyers who make a lowball offer because they can't afford to pay more: don't inform the vendor that your price is reasonable because that's how much you've been eligible to purchase by the lender. Sellers are not concerned about what you can or can afford to purchase. If you can't afford to purchase the property, it's not the issue of the seller; it's yours.

Who Believe Paying Cash Entitles you to a Lowball: Sorry, at the end of the day it's all cash for the seller. Many customers do not understand how it is viewed by the vendor. If a property is valued at the selling price and the credit of the buyer is acceptable, a standard loan transaction will close just like a money agreement. 

Walking Away Following a Lowball Offer: Some customers get their knickers in a twist and walk away when the vendor counters the offer more than the customer was willing to pay. The counter offer might have been at the cost of the list. Perhaps less. The point is that the gates to negotiations have been opened.

Winning Strategies: Find out the motivation of the vendor: if you don't know why the seller sells, you won't be able to satisfy the requirements of the seller. Perhaps the urgent problem is financial. Perhaps the vendor requires to move fast. You can structure your offer to meet those requirements if you understand the reason behind the sale.

Write a Clean Offer: Cross T's and Dot I's. Don't ask for products that are contrary to local custom. Shorten inspection periods, decrease or waive certain contingencies and send a letter of pre-approval from the lender. Do not offer a reason to doubt your capacity to deliver to the listing agent. Appear to be powerful, skilled and willing to close.

Always counter the counteroffer: the first counter is, of course, just an invitation to the customer to offer a second counteroffer. But buyers get discouraged at times. Seeing who is going to win is a dance. Continue dancing until they switch off the lights and close the bar.

Divert Attention Away From Price: There are a lot more than price factors. Changing tactics is clever and asking for other concessions like closing cost credits, repair credits, longer escrow periods or focusing on tangible products like furniture or equipment.

Give a Logical Reason Why Your Lowball Offer is Fair: Do not insult the agent by submitting a similar sales list. The officer is familiar with the comps. Show that you did your homework. Make notes on each purchase comparing it to the property in question.

When Your Offer is Rejected and Negotiations End

Sellers have grounds to reject offers. You may have created an offer on a fresh listing when the vendor believes that just around the corner is a good offer. Let them be sitting on the market. Re-submit your bid after a month or two has passed. 

Below is Hillary O'Dell's contact information, a specialist to assist you in this type of scenario.

Hillary O'Dell

The Baskin Real Estate Specialists

Cell 918-346-2792

Office 918-347-4017

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