Want to buy a new home? Here's when to submit a low offer and be successful
There always seems to be a temptation to submit a low offer on a house the day after a huge price reduction...
Compass Vice President Mike Aubrey provides insight into the inventory challenge facing the real estate market.
There always seems to be a temptation to submit a low offer on a house, apartment or condo the day after a huge price reduction, but I can think of no worse time to get a seller's attention.
There are two times in the marketing process when a seller typically has big hopes and expectations.
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The first time is when a seller is going on the market. He or she has worked for several months painting, cleaning, staging and preparing; has chosen a good agent, reviewed comparable sales and checked neighborhood open houses; and feels totally in the driver's seat.
He or she is hoping to sell their home in a week at the asking price -- or maybe above, if he is fortunate enough to have multiple bids. Then you come along and offer 10% below the listing price.
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The seller is in shock, offended and maybe even so upset that she refuses to make a counteroffer. It's rare to get a low offer accepted in the first week, but you can try.
The downside is it may not sit well with the seller, and later, she will need to understand that your offer was based on your finances and not intended to offend.
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The other time a seller's expectations are high is just after a major price reduction. Similarly, the seller expects the home to fly off the shelf with the new attractive price. You will probably need the new price to marinate awhile until the seller realizes that even with the new price, it is not a bargain and he will probably need to negotiate further.
The best time to give a low offer is when a seller comes to the realization that the adjusted price is now in the range to attract an offer and the original price was not even close.
From here, it boils down to the seller's level of motivation and how urgently he needs to sell.
Ron Wynn has been among the top 100 agents in America for over 10 years, as noted on REAL Trends/Wall Street Journal. Ron has represented over 2,200 sales totaling over $1.5 billion in sales volume in his 30-plus-year career as a real estate broker in California.