A few years ago, if a Buyer told me, “I want to submit a low-ball offer just to see what the Seller says,” I’d say… “Go ahead, IF you’re not serious about buying the home.”
Back then, we had SO MANY buyers shopping because of the Tax Credit (and great rates), it was practically a bidding war for hot listings. If a low-ball offer crossed the table, chances were, it was NOT taken seriously. Sellers knew a “serious” buyer would pay what they were asking.
Today’s market is very different. Because of the shift in real estate and the flood of foreclosures, Sellers are competing vigorously with their neighbors to get their houses sold. Sellers who are listing their properties today, have to price their properties competitively to attract the buyers looking at deeply discounted, foreclosed properties.
Buyers are always looking for the best deal, no matter the product. When house-hunting, their deal-finding senses are even more enhanced. Today, when a Buyer is ready to make an offer, if they aren’t talking about a price-cut, I’m going to suggest it! I already know that listings are staying on the market longer than Sellers want and they are ready to move on.
When I show a house, I look at what has sold in the community in the last six months. If I think my Buyer-Client can grab a bargain, I’m going to encourage it. Yes, I’d make more money if we made higher offers… but I’m looking at the long run. Good deals make happy clients…and… happy clients mean more referrals. That’s a happy trade-off for me!
If you’re already working with a REALTOR®, ask for a CMA (Comparative Market Analysis) before making an offer. Your real estate expert will show you how low you can go on your offer. GOOD LUCK!