Lowball Offer – How to Make and Respond to Them

Lowball, an offer for a property that is significantly under the sellers asking price, are usually made for numerous reasons. Usually viewed in a negative light, most believe that a lowball offer is an insult or a reflection of the actual property value. A lowball is usually what the buyer is able to offer, and if necessary, allows the seller to get rid of the home quickly. However, if you are to put a positive spin on a lowball offer, and are not afraid to negotiate, it can be a great starting point for a home sale or purchase.

Do You Know When to Make a Lowball Offer

It is important to discuss with your Chatham Ontario realtor when it is appropriate to make a lowball offer. Lowball offers are normally made on homes which feature motivated buyers. Those who are likely to accept a lowball offer are those looking for short sales, desperately need the money from a home or who are moving. When making a lowball offer, it is important that you do not take advantage of a person, but instead show comparables of a home that is overpriced. When comparing Chatham Ontario real estate, you may want to consider making a low ball offer on a home that has been on the market for a long period of time. It is important to ask your Chatham realtor when it is appropriate to make a lowball offer and what the circumstances are.

Getting the Most Out of Your Lowball Offer

There are 3 important factors to consider when making your lowball offer.

  • Read the Fine Print: It is important to carefully analyze the fine print and insure there are not any other inclusions, less conditions, or paying closing costs. You should read the Chatham Ontario real estate contract closely with your Chatham Ontario realtor, as the deal might be more or less appealing than you may originally think.
  • Be Open to Negotiation: Throughout the home buying process, it is critical that you do not reject an offer immediately. Give the negotiation process a chance, as some of the best deals tend to begin with lowball offers, and may be your best chance at a sale.
  • Make Your Case: You must always have a reason when you are making your lowball offer. You must be respectful and illustrate why you think that your offer is fair or how a compromise may be made. Having factual information in a well written offer of your explanation will not only be of great assistance to your Chatham Ontario realtor, but also will provide the seller with more information so they will be less likely to immediately reject the idea.
  • Do not start at your top price: If you are looking to back a lowball offer, do not start at your top price. It is necessary that there is room for a counter offer to move up, and if you immediately offer your maximum price it will quickly kill the sale.

Accepting a Lowball Offer as a Seller: When is the Appropriate Time?

Once you have listed your home a price, you want to insure that you get as close as possible to that set price. However, some scenarios may require you to sell your home in a quicker time frame then you originally thought. Although it is important that you get appropriate value for your home, a lowball offer may be the beginning of negotiations. Although you may not get your exact asking price, you will be able to negotiate with your Chatham realtor in order to reach a price that makes both you and the buyer happy.

If you are looking for a home, or you are putting your property on the market, an experienced realtor is an invaluable asset to have on your side. If you're in need of advice, don't be afraid to give me a call - I'd be happy to help!