Any offer can be presented, but a low-ball one that is considerably less than the asking price can dampen a prospective sale and prevent the seller from negotiating at all. The offer will probably be rejected, rather than negotiated.

Do your homework before making an offer. Compare prices of recently sold homes and new listings in the neighborhood. It also helps to know something about the seller’s motivation. A lower price with a speedy closing, for example, might motivate a seller who must move, has another house under contract, or must sell quickly for other reasons.

Also recognize that while your low offer in a normal market might be rejected at once, it might motivate the seller in a buyer’s market to either accept it or make a counter-offer.
When negotiating with a bank, as is common in today’s market, you are often competing with all cash offers in multiple offer situations, especially with a well-priced property. These all cash offers are often low ball, but have the benefit of a quick close, and no loan contingency to the seller. If you are a buyer who is financing a property, and coming in at a much lower price, you will be in competition. Be aware, and be patient.

Posted on October 29, 2011 at 9:28 am
Nancy Low | Category: Buyers

Comments are closed.