What’s a Low Ball Offer?
It can be hard for home buyers to grasp the idea that not every home is overpriced, not every seller is willing to negotiate and a low ball offer could leave you on the losing end of negotiations – if they even get started. But what is a low ball offer?
Everyone you ask will have a different opinion.
Sellers think anything below asking is a low ball.
Buyers believe that offers with a certain percentage of the list price are fair, not low.
And agents are just looking at the neighborhood comps, wondering how to bring both buyers and sellers to a mutually agreeable price.
The real answer?
Low ball offers are those that are significantly below asking price, when the price is right. If a property is overpriced, an offer based on actual sales in the area is not a low ball offer, no matter what a seller thinks.
Offers that are significantly below neighborhood values for similar properties are low ball offers. Just because a property needs repairs, improvements or is out of a potential buyer’s price range doesn’t mean that it’s overpriced.
What are your odds of getting a low ball offer accepted?
That completely depends on the seller’s motivation. But if a property just came on the market and is priced right for the location and condition, your odds aren’t any better than a snowball sitting on the sidewalk in August.
On the other hand, if it’s overpriced, has been on the market for an extended period of time and has had multiple price reductions? Give it your best shot. At the very least, it will open the door to negotiations.