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.
- That is what the buyer thinks the house is worth.
- That is the amount the buyer is qualified for a loan.
- May need to have that price so that the mortgage payment is equal to the rental income.
- 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
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.
Contact James Wexler (480) 221-8080 for all your Phoenix AZ | Scottsdale AZ Real Estate needs