Can you offer less on the house? Lowballing and negotiating like a pro in Newburgh, by Sandra Cotthaus.

Can you offer less on the house? Lowballing and negotiating like a pro in Newburgh

By Sandra Cotthaus

Most buyers hope to find a house at a price lower than the listing price. However, making a lowball offer does not always turn out well. The seller feels insulted, leading him to sell the house to other potential buyers. In making low balls, the buyer must have a real estate agent to help him, while the seller, on the other hand, has a listing agent. They are professionals in the real estate market, and using them makes the process smooth for both parties. Low balling like a pro necessitates specific strategies such as;

1. BEING UPDATED ON THE CURRENT MARKET

CONDITIONS

It means that the buyer does due diligence to determine the price of houses in neighboring areas. Mainly the process is carried out by a real estate agent who is more experienced in work. It is also good to note the current market trend. In a seller market, it is less likely that houses sell at a lower price than the listing. However, there are chances of the seller reducing the prices if the house has stayed in the market for more than six months. Buyers are discouraged from making counter offers which may lead them to lose an offer.

2. BE RESPECTFUL OF SELLERS.

Buyers are urged to respect the sellers even if they feel a house is overcharged. Buyers are also encouraged to follow a local real estate market protocol. Notably, making meager offers upsets the sellers increasing the chances of selling the property to more willing buyers. When presenting an offer, the buyer and the real estate agent should show their appreciation of the property rather than present an offer that is halfway done and is rude to the seller or the property in question.

3. HAVE YOUR AGENT CONTACT THE

LISTING AGENT.

A listing agent usually represents a seller, and communications should be through the agent. A real estate agent represents a buyer.

Communication is supposed to be made by the real estate agent to the listing agent long before asking for a low ball. The real estate agent also learns more about the seller at this stage. He seeks to know why the seller is selling the house and if other offers have been rejected. The information is usually handy in deciding whether a low ball is necessary and how to ask for it.

4. HAVE YOUR FINANCING IN ORDER.

It is always advisable that a buyer has all the finance in order as it attracts the sellers to the offer. It involves pre-approvals from the bank and a good deposit into an escrow account.

The more the buyer deposits, the more likely it is for him to get a chance to own the property.

If the buyer is a cash buyer, the chances of owning the house are highest. Finance checks also mean the buyer is in good terms with a bank or lender. The buyer should make sure that he makes offers on what he can afford to pay for and not what may lead to debts in the future.

5. ELIMINATE AS MANY CONTINGENCIES

AS POSSIBLE.

When asking for a low ball offer, the contingencies should be kept at a minimum.

It would not be logical to ask the buyer to make changes to the property and still sell the house cheaply. During an inspection, the buyer expects to do an information-only inspection. If there are any problems related to the house, then the buyer is the one to repair them. The buyer asks for the cost of repairing the house and incurs the cost at later stages. The buyers are advised that the lowest offers are not always the best. The house could have major problems.

6. EVALUATE THE QUALITY OF A HOME

Buyers assess a home’s quality through the help of a real estate agent: one checks where the house is located and the house’s age and design. However, chances of getting a low ball are minimal for newly built houses.

One makes the offer for dwellings located in a noisy place or with old roofs, and the request can be accepted. One gives the seller reasons why he thinks the price should be reconsidered. One can, for instance, tell the seller that there are old roofs that need to be replaced or walls that need to be taken care of by painting. It tells the seller that one is observative and that genuinely the home is overcharged

7. PROVIDE OTHER BENEFITS TO THE

SELLER

A buyer is encouraged to look for means to meet the seller’s need by providing a closing date in the interest of the seller. Other benefits include giving the seller a cash offer.

When asking for a low ball offer, the buyer is not supposed to ask for any prices less than 25% of the listed price of a house.