The Art of Making Lowball Offers That Won’t Put Sellers on the Offensive
Making lowball offers might seem like a great way to get a good deal on a home, but it’s more nuanced than throwing out any old number. We’ll tell you why.
As a first-time homebuyer, you might toy with the idea of making a few lowball offers on homes that interest you. After all, who doesn’t like to save money? But there’s a trick to making a lowball offer: you can’t make the offer so low that it offends the seller.
In this article, we’ll help you better understand this homebuying technique and whether lowballing your offer is right for your situation.
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What are lowball offers?
A lowball offer in real estate is when a buyer makes an offer significantly below the seller’s asking price. Buyers typically do this to get a great deal, especially in a buyer’s market where inventory is high. However, if the offer is too low, it can tick off the seller and shut down negotiations before they even start. Some sellers may counteroffer, while others might reject it outright or ignore it.
Typically, lowball offers are somewhere between 10% and 30% below asking, but that can change depending on the market, the home’s condition, and how long it’s been sitting on the market. In a buyer’s market, where there’s more inventory than demand, the offer might be more acceptable. But in a seller’s market, where homes are flying off the shelves, a lowball offer could cost you the property.
Regardless of the current real estate market, there’s a right way and a wrong way to make a lowball offer.
