I wrote this in response to another blog post on another blog. I felt I should share it here.
It seems some Realtors and Sellers get really bent out of shape when a buyer makes a lowball offer. I admit that it can be an insult but many times it’s a wake up call to the seller and listing broker.
If you are not lowball offering in this market you as a buyer’s agent are not doing your job….PERIOD. If you think it wastes your time or insults the seller too bad for you the buyer’s agent and your client. Some situations I admit it is totally uncalled for but in many cases when you run the numbers for the property it’s the only offer I will advise a buyer to make. I can easily make that recommendation with good conscience.
Funny but some sellers STILL do not realize that values are down for everyone including them and not just their next door neighbor.
I recommend running the numbers for each neighborhood in a buyer or seller’s area so you can show them just how much of a percentage drop has really happened in their neighborhoods and areas. Nobody cannot argue with factual numbers. When the real facts are submitted with an offer or presented at a listing appointment it really brings clarity to the situation and alleviates a lot of headache.
Here are two situations I was recently involved in where I advised my buyers to make low ball offers.
- We just offered $850,000 on a $1.225 listing. Got it for $925,000. Yeah the lowball was worth it and my client was stoked. I took the time to run the numbers and truly figured out what the property was really worth. As a result it saved my buyer $300,000 off the asking price.
- Another client just got a rental for 50%….YES I said 50% of asking price. He is one happy investor right now. We offered 55% of asking price to see what would happen and they countered back at 50% of asking. Of course my buyer took the deal.