A Lowball offer is an offer for a property that is much lower than the seller expects and, if presented correctly, can still be successful. If you decide to make a lowball offer, make sure you have enough reasons to justify the offer so that the seller doesn’t immediately reject it and think twice. Buyers who are lucky enough to buy a home in a buyer’s market are in the enviable position of being more likely to get a low offer accepted. In a seller’s market, there is not much scope for such offers, as it is the seller who decides the price, and obviously the seller is certainly not going to lower his price.
There are many reasons why you may choose to make a low ball bid. Many properties that are considered outdated, due to the long duration they have been on the listings, are a perfect target for lowball deals. Also, in a very cold market, like the current one, lowball offers can be successful. If you are buying a new home on a seller’s market, the best thing you can do to find sellers who may be receptive to a low offer is to see sellers of overpriced homes who stay with excessive days on the market. Another important reason to make a lowball offer is when you have enough cash to propose a cash deal. Although it does not matter to the seller whether you are taking out a loan or not, ultimately the fact that you get the full amount in cash, in one case, has an impact on your decision making.
When you make a lowball offer, to ensure that you are successful in the offer, there are some simple steps you can take to influence the seller to accept your offer. Find out the seller’s motivation to sell the property and make your offer highly personalized to suit your needs. Also, give some concessions, like shortening the inspection period or allowing the seller to stay for a month after the sale. Such acts can actually influence the seller to accept your offer, although these actions are fraught with minor dangers. Also, if your offer is rejected, never be discouraged and try to counter the rejection with a slightly improved offer, although still in the lowball category. And ultimately, make sure you’ve done your homework right and present facts and figures that justify your offer. Bad market conditions or the absence of development in a certain area can be cited as good reasons for the lowball offer.