Low ball offers are fairly commonplace at present. When looking to buy a home, some buyers are looking at listing age and then making low ball offers on those homes that have been on the market for lengthy periods. Offering 25% below listing price is rarely acceptable – you’re just asking for a refusal.
When making an offer, there are two approaches you can take. You can make an offer that is realistic, affordable, and yet not ask the seller to drop his price too far. If a home has been on the market for an extended period of time, it is important to look at two things – how much they have already reduced the price and the value of similar properties sold recently. Your offer should reflect that data.
The second option is the low ball offer. This is generally a ridiculous offer, and in most cases the home buyer is not expecting the low ball offer to be accepted; rather, they are expecting the seller to counter with a price that is below the current listing price. The problem with this approach is that most sellers are already on the margin when it comes to how much they are willing to sell their home for. A low ball offer is just as likely to be rejected with no counter offer made. This does make the process a complete waste of everyone’s time.
Making an offer is a serious issue. Honest offers that reflect current market price are always going to get a serious review. What often prevents sellers from dropping their prices is their own financial situation. They need to sell the home at a price that at least satisfies their current mortgage – anything lower and it could force the sale into a ‘short sale’ situation, and neither of you want that.
If you’re in the market to buy an Owner Financed home in Austin or other Austin real estate, sellers are in a tight squeeze. While low ball offers may result in a lower counter offer, if a seller has little room to move, they will dismiss the offer out of hand. Make your offer realistic and you may have a better chance of acquiring that home at a price that both you and the seller are happy with.
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