Home Buyer Mistake: Taking chances with a âlow-ballâ offer
Home Buyer Mistake: Taking chances with a ‘low-ball’ offer
Some people are looking to buy income properties and don’t care whether or not their offer is accepted. They’ve crunched the numbers and they know what they can afford in order for their investment to turn profitable. However, if you are a home buyer looking for a house, putting in a low-ball offer can be one of the worst things that you can do.
There are four things that can happen when you put in your low offer on a home:
1. Yes, the first is that they accept it. It can happen, but this scenario is the absolute least likely of the four.
2. The second scenario is that they send back a counter offer and you can see if the sellers are willing to play around with the numbers a little. If you’ve truly low-balled your offer, this is a tricky gamble and rarely pays off.
3. The third scenario is that another offer is put on the same home and yours is thrown out the window before the sellers get past reading the offer price. If this house is priced right at the get go, then this is a highly likely scenario. This can largely depend on how long the house has been on the market for. If it has been on only for a short time, this may be what happens.
4. The fourth scenario is that the sellers are so offended by your offer that they are not willing to work with you at all, even if you bring a new, more realistic offer to the table. Remember, home purchases can be extremely, emotionally charged.
Not surprisingly, we suggest that you talk to your real estate agent before you decide on a price. Your real estate agent will show you comparables and be able to give you the most accurate price range for your offer.
If you are unsure if your offer price will be insulting to a seller, flat out ask your real estate agent. That’s what we’re here for! Conversely, we will be able to tell you if what the sellers are asking for is unreasonable.
Our last piece of advice is the old adage of putting yourself in another’s shoes. If you were selling your home, and you received the offer you intend to send in, what would your reaction be? It’s one thing if the sellers are grossly overpriced and your realtor has told you so, it’s another to submit an offer just to see if you can get the house for that low.
Best of luck in your search for your next home!