What’s a Low Ball Offer?
It can be hard for home buyers to grasp the idea that not every home is overpriced. That not every seller is willing to negotiate a huge percentage off of their listing price. Or even that a low ball offer could leave them on the losing end of negotiations – if they even get started. But what is a low ball offer?
Everyone you ask will have a different opinion.
Sellers think anything below asking is a low ball. After all, they are often positive that their home is the best in the neighborhood.
Buyers believe that offers within a certain percentage of the list price are fair, not low.
And REALTORS are just looking at the neighborhood comps. We spend our time wondering how to bring both buyers and sellers to a mutually agreeable price that leaves everyone happy at the end of the day.
The real answer?
Low ball offers are those that are significantly below asking price, when the price is right. If a property is overpriced, an offer based on actual sales in the area is not a low ball offer, no matter what a seller thinks.
Offers that are significantly below neighborhood values for similar properties are low ball offers. Just because a property needs repairs, improvements or is out of a potential buyer’s price range doesn’t mean that it’s overpriced.
What are your odds of getting a low ball offer accepted?
That completely depends on the seller’s motivation. But if a property just came on the market and is priced right for the location and condition, your odds aren’t any better than a snowball sitting on the sidewalk in August.
On the other hand…is it overpriced? Has it been on the market for an extended period of time with multiple price reductions? Give it your best shot. At the very least, it will open the door to negotiations.