Get Your Low-Ball Offer Accepted

By
Real Estate Agent with wexzilla.com

It is a Buyer's Market. Period.

Most homes are sitting months on the market waiting for any offer; no less a low ball offer.

There are good reasons to make a low-ball offer.get your low ball accepted

  1. That is what the buyer thinks the house is worth.
  2. That is the amount the buyer is qualified for a loan.
  3. May need to have that price so that the mortgage payment is equal to the rental income.
  4. May want to flip the house. Buy Low Sell High.

Keep in mind, low ball offers are not likely to get accepted. You are looking for that one seller in a hundred (and they are out there) who for whatever reason , just wants out.

There are a few things you can do to get a low-ball offer to work.

  • Cash Offer -cash is king to sellers who are well aware of the difficulty borrowers are facing when trying to get a loan approved.
  • Unconditional offer - Do not make your offer contingent on the sale of a currently owned home.
  • Quick Close of Escrow - time is money. Each day is added interest that is being paid be the owner
  • Personalize the offer with a letter or introduction - sounds strange. Yet, sellers are human too. And people like to see something they love go to someone they like.
  • Choose the right home to make offers (check liens) - if your low-ball offer will put the seller in a short-sale position, Don't waste your time. Move on to another house.
  • Look for listed homes with remarks like Desperate seller of ‘very motivated' -you will be surprised to see how many sellers advertise their levels of desperation. - These are homes that will have the most room to negotiate.
  • Waive request for Repairs; DO NOT waive inspection contingency - Make sure you keep your right to inspection. If something is unsatisfactory to you, cancel the escrow. However, you are getting a great price, do not nit-pick over minor aesthetic repairs.
  • Do not request seller contributions -The seller is already reducing the price and will question your ability to close a loan if you need their help in seller concessions.
  • Make lots of offers -you may be outbid or you will more likely get no resp
  • Patience

Remember, there are a variety of emotions tied to home ownership. People will be insulted. Expect anger and hurt feelings.

However, it is your money and you have the right to decided what something is worth to you. And, the seller has the right to say ‘yes' (hopefully) or No.

Make sure you work with a savvy, experienced real estate agent who can assist you with finding the right homes, at the right price with the circumstances that the seller will look closely at your offers. Otherwise, you are just throwing darts blindfolded.

_______________________________________________________

Copyright ©  James Wexler *Get Your Low-Ball Offer Accepted *

Contact James Wexler (480) 221-8080 for all your Phoenix AZ | Scottsdale AZ  Real Estate needs

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Show All Comments
Rainer
9,201
Barbara Romeo
Homesmart Elite - Fountain Hills, AZ
ABR, GRI, Professional Real Estate Consultant

 

great tips. Though, I am not sure if there is anything such as a low-ball offer these days. Any offer is a good offer :)

November 15, 2008 11:34 AM #1
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

Barbara - you are right. Which is unfortunate for sellers. any offer from a ready , willing and most importantly, "Capable" buyer is a good offer

November 15, 2008 12:16 PM #2
Rainmaker
152,334
Debra Kukulski, Broker Associate
RE/MAX Unlimited Northwest - Cary, IL
SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

Good buyer tips, James and I agree that it is so important that the buyers are represented by a GREAT, SAVVY Buyer's Agent!

November 15, 2008 02:23 PM #3
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

Debra - thanks for adding me as an associate. Look forward to networking with you. If anyone is looking for a real estate expert in Northern Illinois, call Debra Kukulski

November 15, 2008 03:09 PM #4
Rainer
52,256
Daniel Wexler
ReMax - Fountain Hills, AZ

james,

many clients will waive a request for repairs. It seems nitpicking. However, as you point out, never waive the inspection contingency

November 15, 2008 04:12 PM #5
Rainer
59,229
Jason Mitchell
Realty Executives - Scottsdale, AZ

wexler and wexler

if you want a low-ball offer to work , convince the seller you can and will close escrow, show cash reserves, income, credit whatever you have to do to persuade them of your ability to qualify for a loan and close quick

November 15, 2008 04:35 PM #6
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

 

Daniel -

Always retain inspection contingency , even if you have to shorten the length, but at least have that option to make sure everything is in good order

November 15, 2008 04:45 PM #7
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

Jason Mitchell -

you are right, ... too many loans are falling through these days even for many truly worthy borrowers , so convincing a seller you can close is great advice

November 15, 2008 04:46 PM #8
Rainer
19,256
Mike DelVero
Liberty One Lending - Tempe, AZ

james -

I help buyers with a pre-qualification package that they can submit along side an offer to substantiate the ability to get a loan . Sellers seem to like it

November 15, 2008 05:57 PM #9
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

 

Mike Delvero - good idea and a great service offered to your borrowers.

I am sure they appreciate they effort and market awareness and the listing agents must really appreciate seeing an offer with that type of information supporting it

November 15, 2008 06:00 PM #10
Anonymous
Anonymous
Nick Nathan

I have been a modestly successful real estate investor over the years by making cash offers with no contingencies and a 5 day inspection , earnest money goes hard afterwards,

it is aggressive, but sellers respond well to these offers even at low-ball prices

November 15, 2008 06:26 PM #11
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

 

Nick Nathan - you are recommending good advice. However, I am glad you qualify it by saying, Only for experienced real estate buyers

I dont think you are recommending first-time homeowners to waive contingencies and earnest money going hard (non-refundable).

I would not recommend that strategy unless you have the serious experience and risk tolerance you have.

November 15, 2008 06:34 PM #12
Rainmaker
1,477,020
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Authentic Feng Shui Expert

James, What wonderful ideas.  I do know some buyers might be insulted but it's very true, people also DO need to sell!  And if you get that 1 in a 100 you've gotten a terrific deal!

November 15, 2008 07:10 PM #13
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

Carole Provenzale - People need to sell much more then they need to buy. As a result, if you need to sell, take the offer (if it is within reason) , you may never see another one higher. If you can stay in the home, dont sell. You dont need a realtor to tell you now is not the best time.

November 15, 2008 08:19 PM #14
Ambassador
390,646
Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
Realtor - Charlottesville Virginia Homes and Horse Farms

James - Buyers right now are looking for a deal.  Good post on telling them how to get it.

November 15, 2008 09:30 PM #15
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

 

Pam Dent - I think buyers can turn a low ball offer into a good deal not only for themselves but a fair and reasonable deal for sellers who truly need to sell.

November 16, 2008 12:03 AM #16
Rainmaker
473,731
Harrison K. Long
Coldwell Banker Previews, Irvine, South OC - Irvine, CA
business, REALTOR , GRI, Broker

James ... I like your article on GET YOUR LOW BALL OFFER ACCEPTED. However, I am confused that you indicate the article is copyrighted ... but yet allow for reblogging.  What?  Harrison

November 16, 2008 02:48 PM #17
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

 

Harrison Long - thanks for reading, not sure of the legalize, .... but, I am not too picky about who reblogs or uses my content as long as there is mention/citation/author credit to me as the original content 

November 16, 2008 04:21 PM #18
Rainer
3,095
Nicholas Rausch
Prime Time Lending - Scottsdale, AZ

Does anyone really take conditional offers. Maybe, if some amount of earnest money is non-refundable. otherwise, it makes non sense

November 16, 2008 04:27 PM #19
Rainer
207,933
James Wexler
wexzilla.com - Scottsdale, AZ

 

Prime Time Lending - I dont know too many people who will take conditonal offers ont he sale  of another home. unless, you demand some amount of money non-refundable should the other sale not go through. Though, it is pretty hard for sellers to demand anything in this market. especially, non-refundable money

November 16, 2008 04:33 PM #20
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