"The house is listed for $150,000, let's offer $110,000 and see what they say." The worst thing that they can say is no, right? WRONG!!! The worst thing that can happen if you lowball like this is you lose the house you really wanted in an attempt to get the deal of the century! I have seen this happen so often lately and lowball offers are not getting buyers and sellers to work together very well. When you are ready to present an offer to a seller, whether they are a bank or a homeowner, take these important steps in make sure that everything works out the way you'd like it to.
- LOOK AT THE NUMBERS! Your agent will sit down with you and show you the comps for the area. This will tell you what homes have sold for within the 4 to 6 months and will help you choose a number that is most likely to be accepted.
- BE REALISTIC. Yes a home is only worth what a buyer is willing to pay for it but it's possible that you may not be that right buyer. If you are not willing to offer within the range that homes are selling for in that area, and the home is in the right condition for that market, then maybe that home isn't the one for you. Remember, there is a seller on the other side who needs to sell their home and they may not be able to go as low as you'd like them to.
- BE PREPARED TO WAIT......especially on a short sale. When a short sale is placed on the market, the bank has already completed a market study and priced it at that number in order for it move quickly. Though the seller may be willing to take any offer that will help them move on, the bank has the final say and they may take a very long time. There is also no guarantee that they will accept the terms that the seller did. Your best bet, stick to the numbers and make sure that your offer is as close to true market value as possible. This will increase your odds of getting the home.
Once you have done your homework and you have your trusted agent by your side, making an offer will be a breeze. You should be able to find the right home for you at the price you want and feel like you got a deal :). In the end, everyone is happy!