Updated: Jun 20, 2019
With a continued lack of inventory in most price points, buyers are often faced with no other choice but to make an offer above asking price just to have a chance at beating out the competition for their dream house.
But when is it okay to go the other direction and make a lowball offer? To be clear, most agents warn against extremely low offers (typically more than 15% below listing price) because you might offend the sellers and risk having them not even respond to your offer, even if the home’s been on the market for months.
Not sure where to start? These three signs will help you determine when the time is potentially right for a lowball offer.
1. When the home is obviously overpriced
2. When the home has bounced on and off the market
3. When the home is outdated or in need of major renovation
When it comes to writing lowball offers, there is no one right answer for every situation. With the help of your agent, determine that price, consider the circumstances surrounding the sale, and use this information in the manner which will best achieve your goals. While lowball offers are becoming more frequent, the lowball offers based on value and not just asking price alone are the ones that are going to deliver the winning pitch.
Contact us for more information about the home buying process – we’re here to help!