You should not be afraid if you have identified a single family home you want to buy, but your budget falls short. You can go ahead and make your lowball offer as long as you have sweetened it. Here are a few sweetening tips that have proven useful in the past:
Go Easy On the Contingencies
A few contingencies to protect your money won't hurt. For example, it makes sense to include an inspection contingency if you are buying an old home and you have a few suspicions. However, you should trim your contingencies if your offer isn't exactly close to the listing price. Imaging making a lowball offer and then weighing it down further with every little contingency you can think off (including your spouse's nod). Those are the kind of purchase offers sellers rarely look at more than once.
Go Easy On the Requests
In addition to the contingencies, you shouldn't make too many requests either if your offer is too low. This is not the time to ask the seller to throw in a few appliances, share the closing costs or make cosmetic repairs. Come on, you are already in the seller's bad side by making a lowball offer, do you really want to worsen it by requesting the inclusions?
Capitalize on the Seller's Motivation
One of the best ways to sweeten a lowball offer is to find out why the seller is selling the property and customize your purchase offer to help the seller realize their objectives. Find out whether:
Once you have zeroed in on the motivation and offered the seller a solution, the seller may ignore other higher offers that don't offer any solution to their main problem.
Have a Good Reason for the Low Offer
Lastly, you should not leave the seller guessing at the reason for your lowball offer. Give them a reason, and the reason should be good and respectful. A good reason is not that you don't have the money but really want a home right now before the baby arrives. A good reason is not that you can only afford a so and so mortgage. Begging or making a sob story isn't likely to sway the listing agent and this is the person you will be dealing with. Instead, come up with a reason why the listing price seemed high to you. For example, you can look at the features of comps that your target house lacks and highlight them.Share
1 May 2018
I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.