Jul 29, 2021
You’ve just made an offer. You’re very excited about getting a response back and hopefully getting it accepted. However, the offer is quite low, also known as a low ball offer. We had so much to say about submitting an offer as a buyer and what happens specifically when you make a lowball offer that we decided to continue this topic today. If you’re making offers we know you want to make a deal, it just depends on how will you get there.
If you are buying and you have a timeline in terms of when you need to move out of your current home, a rate lock on a mortgage, or your rental is ending then it can be tricky when making low ball offers. They typically don’t work unless the property has high days on market, needs a gut, or has something very undesirable like facing a brick wall. In order to make low ball offers work, it’s best if there are some comparable sales that actually support the offer and it’s best if you have time and patience. Disciplined buyers who are not in a rush and really don’t have a great reason to move often can do this. There is a chance of experiencing property fatigue as at some point you might get sick of the process. Sometimes you need to have a few of these experiences to then come up in price. Also, with rates so low coming up in price if you are financing does not equate to much.
If you are an investor you might consider an undesirable apartment in a very desirable neighborhood and you might only be thinking about the end price but again tenants won’t necessarily want to rent the space and when you sell it you won’t make as much.
If you enjoy this podcast, please tap on the stars below and consider leaving a short review on Apple Podcasts. It will take less than 60 seconds, and it makes a difference in helping us bring you more content.
Subscribe to The Real Estate Broads of New York on Apple Podcasts, Google Podcasts, Stitcher, Spotify, or wherever you listen so that you never miss an episode, and let us know if you have any questions or topics for future episodes you'd like us to discuss.