The Art Of A Lowball Offer – What Works & What Doesn’t
Lowball offers can be risky. Sometimes they work and sometimes they don’t.
Without some knowledge of the tactics that are involved in making a lowball offer, you could very easily lose out on a great Knoxville home for sale, if you’re not careful. Here is why some lowball offers work and why others don’t when buying a Knoxville home for sale.
The Price Must Be Realistic
Price is important when it comes to writing a lowball offer on a Knoxville home for sale. Obviously, a lowball offer is going to be significantly below what a home is listed for, but how you come to figure out a price is very important with the success of writing a low ball offer.
When It Doesn’t Work: Writing a low ball offer based on your fantasy of what you’d like to pay for a home. While this may sound great in your head, it’s generally a bad idea and it most likely won’t work. Without having some facts to support your number, you’re just pulling a number out of thin air and hoping the seller accepts.
When It May Work: If you’re considering offering significantly less on a home, research is very helpful. Looking at homes that have recently sold in the area or that are for sale in the area can help you determine if your price is at least in the ballpark. For example, if a home has been on the market for over a year, and it significantly lacks what other homes in the area have to offer, you may be able to make a lowball offer based on that data. Your realtor can help you with the necessary research.
The Offer Is Written Based On Facts
Lowball offers have their place. They have a chance to get accepted when there are facts involved. Sellers are much more likely to get offended if they think a buyer is trying to cheat them out of a better price, but if facts are shown to support the offer, a seller is able to see that a buyer is thinking the process through.
When It Doesn’t Work: Again, if you’re pulling a price on what you think you want to pay for a home, it’s going to be hard to get an accepted offer. You have no facts to support your reasoning and a seller is much more likely to walk away from the situation.
When It May Work: If you feel you have sufficient reasoning for offering a significantly lower price, it can help to support that data to the seller. Your realtor can prepare a list of comparable homes in the area that have sold or are for sale in your price range. Your realtor can pass these along to the list agent as support. In addition, if there are obvious repairs to be made, those can be included as well to take into account with the price.
The Market Has Proven An Inflated Price Already
If a home has been sitting on the market for a long time, the seller is likely more motivated than a seller whose home has just hit the market. Likely, this seller has received very little interest or only low offers, thus making them more willing to work with a buyer.
When It Doesn’t Work: If a home hasn’t been on the market for long, a lowball offer will likely get rejected. Also, if a seller isn’t motivated or is already bringing money to the table, they will likely reject it or try to get a higher price.
When It May Work: If a home has been on the market and received very little interest, a seller may be more motivated to work with you.
Bottom Line – Sometimes They Work, Sometimes They Don’t
Lowball offers can be risky, due to the fact that you can miss out on a great home if you offend the seller or if a better offer gets written. Using some facts to help you come up with the proper price can help your chances at getting that offer accepted, but it ultimately comes down to the seller. Some sellers will simply refuse to accept below a certain amount or they are unable to accept an offer below a certain amount.
Are you thinking about buying a Knoxville home this year? Please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at Kati@KnoxvilleHomeTeam.Com. Also, be sure to check out our Knoxville Home Search Page.