Considering a Low Ball Offer? 3 Things to Consider First

Over the past few years, home prices have dropped dramatically but with the improving economy the housing marketing is on the rise and inventory is tight. With prices being so low, buyers often make low ball offers on homes in an effort to get a good deal. Well that may have been a good idea several years ago, but these days tossing a low ball offer isn't just bad form; it can also offend a home owner into rejecting your offer.

Today, buyers must realize that there are several factors that are taken into consideration when making a competitive offer on a home. Here are 3 things to consider on making an offer on the home you want – without upsetting the homeowner. 

  1. Understand the market and the value of the home. To determine the value of a home, appraisers look at comparable homes that have sold recently. Work with your real estate agent to see what homes have sold in the last few months and notice the difference between the list price and the sale price. Understand that factors like square footage, lot size and age can affect the price. This knowledge can help you make a fair offer on a home. 
  2. Consider how long you have been looking for a home. If you have been searching for the right home for several months, don’t blow your chance on the right home by making a low ball offer. Typical home searches can take up to 12 weeks, if you make an offer that is rejected and you've offended the home owner, you’re now back to square one and have to search for another home which could take even longer. 
  3. Don’t insult a homeowner. Most homeowners are emotionally attached to their home. They have invested a lot of time and money into their home and have raised a family in this home. The value a homeowner place on their home is not only sentimental but priced according to market value. Don’t risk losing out on the home by placing too low of an offer and insulting a homeowner. 

Even if your goal is to get a counteroffer and settle on a price in between, starting off with too low of an offer can jeopardize the process and a seller can refuse to work with your offer at all. Put yourself in the seller’s shoes – how would you feel if you got such an offer?

Contact a Buyers Agent with the Expert Real Estate Team to help you make a proper offer that will work for you AND the seller. Call us today at (864) 895-9791.