Buyer's Market Brings Lowball Offers
Lowball offers come with the territory. Buyers read headlines, see sale numbers dropping and automatically assume the bottom is falling out of the marketplace, which isn't true. They don't read the whole story.
In Sacramento's four-county area, for example, property values have risen 110% between January of 2001 and August of 2005. Over the past 18 months, prices have softened and fallen 10%. Does that mean the Sacramento market has tanked? I don't believe so. It means sellers who have owned their home since 2001 have watched their home values double without lifting a finger to remodel or do anything to increase their equity.
But it also means these sellers can't expect to get the price they could have received a year and a half ago. If a home was worth $300,000 in 2005, it's probably worth about $270,000 now. So either sellers conform to the marketplace or they won't sell because fewer homes are selling.
No doubt about it, buyers are getting good deals in most areas of the country right now. But if you're planning to submit a lowball offer, think about . . . read more
Ready to Know More About Negotiations? Click below:
Technorati tag: lowball offers
Comments
Elizabeth, You’re not alone on low ball offers. Listed a house at the bottom of the comps. Lots of activity. Today we received a low ball offer. Countered back at a reasonable price. In this case the seller is right to counter at the price she did.
On the other side of the coin, I have a buyer who is making offers for what comps support. He’s not low balling. He just refuses to pay too much. Seller has unrealistic expectation of getting an inflated price. So, still looking.
Some people refuse to understand that not every deal is poised for lowballing. Many sell at list price when the price is right. The wise know the difference. The fools spin their wheels. There are a lot of fools trying to buy real estate today. And they’re rude on top of it. Double no-no.