Why Make a Low Ball Offer?
A Lowball offers is an offer for a property which is much lower than what the seller is expecting and if presented correctly, can still be successful.
If and when you decide to make a lowball offer, make sure that you have enough reasons to justify the offer so that the seller does not turn down the offer immediately and gives it a second thought.
Buyers who are lucky enough to shop for a home in a buyer's market are in the enviable position of being more likely to get a lowball offer accepted.
In a seller's market, there is not much scope for such offers as it is the seller who decides the price and obviously, the seller is certainly not going to bring down his price.
There are many reasons why you can choose to make a low ball offer.
Many properties which are considered stale, because of the long duration that these have been on the listings, are a perfect target for lowball offers.
Also, in a very cold market, such as now, lowball offers can be successful.
If you are shopping for a new home in a seller's market, your best bet for finding sellers who might be receptive to a lowball offer is to check out those sellers of overpriced homes lingering with excessive days on market.
Another important reason for you to make a lowball offer is when you have enough cash to propose an all cash deal.
Even though it makes no difference to the seller whether you are availing a loan or not, ultimately the fact that he shall get the entire amount as cash, at one instance, does have an impact on his decision making.
When you do make a lowball offer, in order to ensure that you are successful in the bid, there are some simple steps that you can adopt to influence the seller in agreeing to your offer.
Find out the seller's motivation in selling the property and make your offer very personalized so that it suits his needs.
Also, give some concessions like shortening the inspection period or allowing the seller to stay for one month after the sale.
Such acts can actually influence the seller into accepting your offer, though these actions are fraught with minor dangers.
Also, if your offer is rejected, never lose heart and try to counter the rejection with a slightly improved offer, though still in the lowball category.
And ultimately, make sure that you have done your homework well, and submit facts and figures which justify your offer.
Bad market conditions or absence of development in a certain area can be cited as good reasons for the lowball offer.
If and when you decide to make a lowball offer, make sure that you have enough reasons to justify the offer so that the seller does not turn down the offer immediately and gives it a second thought.
Buyers who are lucky enough to shop for a home in a buyer's market are in the enviable position of being more likely to get a lowball offer accepted.
In a seller's market, there is not much scope for such offers as it is the seller who decides the price and obviously, the seller is certainly not going to bring down his price.
There are many reasons why you can choose to make a low ball offer.
Many properties which are considered stale, because of the long duration that these have been on the listings, are a perfect target for lowball offers.
Also, in a very cold market, such as now, lowball offers can be successful.
If you are shopping for a new home in a seller's market, your best bet for finding sellers who might be receptive to a lowball offer is to check out those sellers of overpriced homes lingering with excessive days on market.
Another important reason for you to make a lowball offer is when you have enough cash to propose an all cash deal.
Even though it makes no difference to the seller whether you are availing a loan or not, ultimately the fact that he shall get the entire amount as cash, at one instance, does have an impact on his decision making.
When you do make a lowball offer, in order to ensure that you are successful in the bid, there are some simple steps that you can adopt to influence the seller in agreeing to your offer.
Find out the seller's motivation in selling the property and make your offer very personalized so that it suits his needs.
Also, give some concessions like shortening the inspection period or allowing the seller to stay for one month after the sale.
Such acts can actually influence the seller into accepting your offer, though these actions are fraught with minor dangers.
Also, if your offer is rejected, never lose heart and try to counter the rejection with a slightly improved offer, though still in the lowball category.
And ultimately, make sure that you have done your homework well, and submit facts and figures which justify your offer.
Bad market conditions or absence of development in a certain area can be cited as good reasons for the lowball offer.
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