This morning, I came across a Wall Street Journal piece written by Amy Hoak on “How to Make a Lowball Offer.” When I saw the article, I was curious see what information they can provide to Boston Real Estate Blog readers.
So, is there a right way to low-ball an offer?
I agreed with most of what the article points out, such as finding the right real estate agent who isn’t hesitant to presenting low-ball offers to other agents, especially ones they know or have done business with before or they’re nervous of developing a certain reputation.
Another point the aricle makes is that you need to know the market, which would include recent sales data.
“Sellers want to know why you’re coming in so low. Include recent [comparable sales in the area] or issues with the property that validate why your offer is so low.”… Don’t be too harsh with your criticism, however – that can also work against you,…
The main point is that low-balling shouldn’t be taken by either party as an offensive statement. Obviously, the potential buyer liked the home enough to be willing to spend time and to submit an offer, even though it may be signafcantly less than what the owner wants. Most sellers I’ve worked with have set a firm price in his or her mind. They shouldn’t be insulted by a low offer, but see it as an invitation to dialogue and counter offers. As the saying goes, and it could be true for both parties – nothing ventured, nothing gained.
Click on the link to read the full article. Wall Street Journal piece written by Amy Hoak on “How to Make a Lowball Offer.”
