Top Tips For Lowballing When You Buy Your Next Homecheck out my disclaimer policy
What is lowballing?
First of all, let’s take a brief look at lowballing. It’s a process where you as the home buyer offer well under the seller’s asking price, and, as a rule, it is usually an unsuccessful tactic. Unless the seller needs to move out quickly or hasn’t found a buyer for a long period of time, it’s likely that a lowball offer will be met with disdain.
And rightly so, of course. After all, if you know your home is worth x amount of dollars, why would you settle for less? However, lowballing can work – you just need to know how to play the game, which we are going to take a look at right now.
Understand the home buyer market
First of all, whenever you are looking for a house for sale, it’s important to comprehend the local market. At this stage, real estate agencies can be incredibly handy for you, as they will be able to tell you the basics of local evaluations, services, crime rates and all kinds of other important factors. You should also check local statistics and do some investigations yourself on home buying websites. The idea here is to find out whether the home that you like is priced reasonably – if it isn’t, you might have grounds for offering slightly lower straight away.
The more you know about a home for sale, the more proof you will have when it comes to making a small offer. A thorough home inspection is an absolute must, and you should also consider getting an engineer’s report. These investigations will reveal anything that is wrong with the home and will, in the future, cost you money to fix and repair. While these services will cost you a few hundred bucks each, ultimately they could shave tens of thousands off the seller’s asking price.
Have a good offer
Don’t forget, it’s not just the asking price that a seller looks at when they are trying to strike a deal. There are other elements at play, here, that you can use to your advantage as a buyer. For example, if you don’t have a chain involved and can buy pretty much straight away, it can be tempting for the seller to take this faster option. You should also have all your finances in order, too, with your loan qualification letter ready to present and give the seller the confidence they need to settle.
As a final point, buying a property outright with cash is not always going to result in a seller accepting a lowball bid. But make no mistake about it, no matter what the asking price, a seller will always be tempted by a cash offer from a home buyer, simply because it is a quick and easy sale.