Lowballing 101: How to Avoid Insulting a Home Seller when Making a Low Offer for Their House.
Buying a home is a huge step for people who are ready to make an investment in their future. Getting a great deal on a home is just as important and knowing how much to offer could be confusing. It is important to make sure the home seller is not insulted by a low offer and is ready to negotiate to make sure everyone wins.
Make a List of Necessary Improvements
One of the best ways to validate a lower offer on a home is to list improvements that need to be made to the property. If the home needs a new roof or a new heating and air conditioning system, these are reasons to offer less than the asking price. Sometimes a home may also need new flooring, paint, or matching appliances which all cost money. The buyer can make a lower offer stating the additional expenses of making sure the home is move in ready.
Explain Any Issues with the Location
Another option when considering a lower offer is to point out problems with the location. If the home is on a busy street or close to something equally undesirable, the buyer has legitimate concerns. In the offer, list the potential problems of living too close to fast food restaurants, train tracks, or airports. A less desirable location could equal a great buy on a new home.
Provide Pricing for Comparable Homes in the Area
A knowledgeable real estate agent can help compare homes that have sold in the area. When you are writing up a lower offer, look at the lower priced homes that have sold in the same neighborhood. A seller will quickly realize that if he wants to sell the home, he will need to accept a reasonable offer or risk letting his house sit on the market for weeks or months.
Consider the Seller’s Reasons for Selling
Finally, the seller’s situation can also be key in getting a good deal on a home. If the seller is anxious to sell because of a job relocation or if he has already bought a new home this can be the perfect reason to make a lower offer and take the home off the seller’s hands. Without insulting the seller, the buyer can make an offer for less than the asking price and agree to a quick closing.
The Right Agent Can Make a Huge Difference
I’ve been successfully representing buyers in South Orange County since 1976 – almost 38 years! In that time I’ve been able to negotiate some excellent buys, for most of my buyer clients. If you are thinking of buying your next home, I would be honored to be considered as your agent.