How to Mess Up a Lowball Offer on Real Estate
Years ago when my dad died my sister and I went back to the house we grew up in. It was an ordinary house, a tract house. It sat in the middle of a neighborhood where every 3rd or 4th house was the same floor plan. My father took care of the house, for the most part maintained it and he took pride in it. One of his best friends was the next door neighbor – a Realtor.
So we got the house cleaned up, cleaned out and listed in short order. We took comfort in knowing the Realtor lived next door and would keep an eye on the property. The agent was also vested in the sale, after all he lived next door. The agent wanted the highest and best price, the sale would reflect on the neighborhood. He wanted to protect his and everyone elses property values. We listed the house in the middle of average current listings. We weren’t looking to make a lot of money on the house, we were looking to get back to our lives.
An offer came in, a really, REALLY low offer, a low ball offer. And they wanted a huge tree removed. We countered back at full price and wouldn’t remove the tree. The offer was so ridiculous there was no point in negotiating. Some time went back and the same people came back with a slightly better offer but still way off what we were asking. In the long run the same people came back four (4) times.
My sister and I knew these people wanted the house, why else would they come back four times? They showed their hand by writing so many offers and increasing the offers in increments. Eventually the same buyers wrote us a full price offer and the tree stayed.
How could they have gotten the house for less than asking or list price? They should have written a reasonable offer to begin with.
Ask your agent what percent houses sell for in your area. In Canon City most houses sell for between 95% and 97% of asking. But it’s not unheard of for a property to sell for more than 100% of list price.
Don’t insult the sellers, they know you want a bargain. But do you know they want full price?