In today's real estate FAQ's episode you'll learn tips for getting a lowball offer accepted!
Let's begin with some basic how to buy a house questions that come up frequently.
Nearly every buyer always asks, "can I offer less money for the house," when they are ready to write an offer.
When buying a house, the list price and terms of the contract are negotiable. To weigh the odds of what is considered a lowball offer on a house, begin with understanding if the current market is a: sellers market, buyers market, or balanced market. Depending on the type of market will determine the likelihood of getting an offer accepted on a house, especially one quite a bit under list price.
The next question that usually pops up is, "how much should I offer on a house below asking price?" That's a great question! Real estate lowball offer mistakes occur when a buyer first doesn't understand the current market conditions and trends. Working with a savvy buyer agent, when a home buyer gets ready to write an offer, the agent will double check value. If higher than reasonable then the offer should be less than asking price. If the list price and valuations check out, then it's matter of motivation on behalf of the seller and the market conditions. (i.e. are multiple bids occuring? how long has the house been on the market?)
So, how to make lowball offers on a home successfully? First, understand the market conditions. (Yes, I'm driving this point home because it's critical to your success!) Next up, find the homes with the longest days on market that you like best. Next, schedule with your trusted real estate advisor to check them out asking your agent to "comp" the property before viewing the home. Ask your real estate agent if the home is overpriced, underpriced, or at the right list price. Chances are, if a home has a many days on the market over the average in your area, the price isn't right and the seller must come down if they hope to sell.
So, what percentage is considered a lowball offer. If the home is priced correctly, anywhere from 3%- 5% under list will definitely be low. If the home is overpriced then anywhere from 7%- 10%+ will be considered a lowball offer.
Here's the deal... In practice, me and my teammates have assisted home buyers get as much as 15% off the list price on occasion even in a seller's market. While it's certainly not the norm, every property, buyer, and seller thus negotiations are unique.
To balance that fact, if a buyer wants to consistently be unreasonable by making lowball offers on correctly priced homes or underpriced homes and not listen to the prudent counsel or learn how to make a successful offer, then I will consider the buyer unmotivated to buy a house and simply fire the client.
Please understand that when real estate agent's represent home buyers, we are looking out for your best interest and will assist you in getting the deal possible for the current market on both price and terms that help you get the home you want. Depending on your motivation to get the house, days on market, price, and market conditions, terms needed (i.e. buyer closing costs, home warranty, etc...) will determine the best way to make an offer on a house.
Be realistic, be smart, and listen to your trusted real estate advisor whether you'll be able to get your lowball offer accepted or not. Sometimes it does work out.
To get the most of this video, watch it start to finish and share your questions & comments, about when to walk a way from a home purchase with our community below. Thank you.
To get honest information the next time you're buying a home or selling a house contact a great local trusted real estate advisor.
If you want help finding one of the best real estate agents in the nation, a CRS please let me know. I'm here to help!
If you want to know more about Las Vegas real estate or buying a home in Las Vegas, please let me know. I'm happy to help!
Thank you for watching! =)
Enjoy an amazing day!
-Your Real Estate Geek, Andrew Finney
USMC Combat Veteran/ Real Estate Consultant
Call/ Text: 702-710-0287
BHHS, Nevada Properties
7475 W. Sahara Ave. Suite 100
Las Vegas, NV 89117
Certified Residential Specialist (CRS)
Accredited Buyer's Representative (ABR)
Sellers Representative Specialist (SRS)
Military Relocation Professional (MRP)
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