Mistakes Buyers Make with Lowball Offers

After the financial crisis five years ago, there were definitely deals to be had. But the economy has recovered a bit and housing inventory is tightening up, especially in metropolitan areas such as New York City, San Francisco and Atlanta. 

 

Assuming that someone’s going to be thrilled that you make an offer on their house (even a lowball offer) is not the case. When bidding wars break out, sometimes buyers have unrealistic expectations and end up being the one who lost.

 

Here are the most common mistakes that buyers make with lowball offers.

 

1.  Aggressive negotiating - This will usually get you nowhere.  There is no reason to start negotiations with a wildly lowball offer and to make outrageous demands.

 

2. Refusal to pay asking price. The idea that you should never pay the asking price isn’t realistic. Sometimes the house is worth exactly what the seller has priced it at. It's OK to pay that price.  

 

3. Ignoring the needs of the seller - Sometimes buyers are shocked to find that a seller accepted an offer for a lower amount than they had submitted.  Most buyers assume that price is the only consideration.  The truth is often a seller is more concerned about how much time they will have to move out, once the sale is completed.  In another scenario, a seller may take an offer where a buyer is not asking for any repairs even after the inspections are done.

 

Bidding wars can be invigorating or devastating for a buyer. You can end up the winner or you can be the loser. The sellers and the seller's circumstances should be taken into consideration at all times during the negotiation process, the more you understand their needs, the greater the chances are you will end the winner.

 

Nancy Puder is a real estate broker at Signature Properties, a prestigious real estate firm in Arroyo Grande, CA. You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!