The Art of Low Balling Revisited

Tuesday, September 23, 2008

As a follow up to my lastes posting I wanted to relist this old post from 2008.
There are many things to consider when offering a seller a low ball offer. Some homes are not susceptible to low ball offers and one would just be wasting there time trying to submit a low offer on these homes. Homes usually sell for around 96% of there asking price, but there are some homes out there that can be low balled and be thankful for even getting an offer at all. Here are some things to look for when considering a low ball offer:
Length of time on the Market: If a home has been on the market for four months or longer chances are the seller is becoming somewhat frustrated and is looking to move on.
Previous Purchase Price: Unless the property is outside of the Realtors area of expertise he or she more than likely can tell you what the sellers paid for the property and when they bought it. This information can be pulled from PVA records or from the MLS (Multiple Listing Service). If the sellers purchased the home for significantly less than the asking price I would say this is another sign that you can low ball them.
Motivation to Sell: Some people sale there home just because they like another home in the area and would like to move but don’t necessarily have to. These people can’t be low balled. But if you walk into a home and it is vacant or there are moving boxes around, this home may be ready to low ball.This isn’t a full proof recipe for getting a home below market value but homes that meet all of these qualification are totally vulnerable to be low balled. A good realtor can usually get you all this information and a shameless realtor like myself would be happy to deliver your low ball offer.

How to be a hard core negotiator!

In every Real Estate transaction there is a natural conflict between the buyer and the seller. The seller obviously wants to get top dollar for their property and the buyer wants to low ball them and try to steal the property. In this market sellers have less leverage than buyers during negotiations but still have the ability to be hard core the trick for both sides is to be willing to walk away from the deal if the other party doesn't see things your way. Each party needs to get a figure in their head for a target price and sticking to that figure as their bottom line.

For sellers in this market that figure may be unobtainable if that's the case they need to be prepared to pull their property off the market and wait until the economy rebounds until their property will fetch the desired price.

For buyers you must remember to make decisions with your head and not fall in love with a property and make an emotional decision. There are plenty of properties on the market and plenty of deals to be had so be patient and make sure your getting a home with some equity in it. Again the trick is getting a price in your head that you would be willing to pay for the home and come in with your initial offer being just below that figure. I like to make it where if the seller would come down and meet you half way you would be at your target figure. Again, if the sellers wont come down to your price move on to another property. Chances are they will contact you later hoping you will come back.

Coming out of Hibernation.

Its a near year and a new selling season is right around the corner. So I've come out of hibernation for the winter a little early this year and plan to hit the ground running in 2011. Statistics tell us the 75% of homes are sold in the first six months of the year so if your thinking of buying or selling you may want to start getting ready to enter the Real Estate market soon. interest rates are still low but they can't stay low for ever and I have a feeling they will slowly start to rise this year. So if you or anyone you know plan on buying or selling a house give me a call!