Because of the recent problematic economy, the real estate market has become flooded with available homes. This definitely places the advantage in the buyer’s court, but some buyers are seeing the troubled market as their chance to get the home of their dreams for a lot less than they would have spent in a healthy real estate market. This is leading many buyers to present lowball offers to sellers who may have had their home listed for months. Some buyers are taking advantage of the fact that sellers are having a hard time getting the asking price for their homes. They feel that if a seller really wants to get rid of their home, they will take any offer presented. While this may be a viable method for making an offer on a home, there are some ways to handle this situation so that the seller doesn’t feel taken advantage of.
The first thing buyers need to do before making an offer on a home is to get an understanding of the market in the area they are looking. This can be done by asking their real estate agent to perform a full comparative market analysis. This will help buyers know the fair market value of homes in the areas they are interested in buying in. This will also give the buyers and their agent’s information on how long the property has been on the market and an idea as to how badly the seller wants to sell his home. Taking all of this information into consideration will help the buyers and agent decide on a price they feel is fair to the seller.
The next thing you and your agent should do when preparing an offer is to explain why you are bidding low on the home. Starting the negotiations off with a lowball offer may set the mood for the entire deal, but if you can explain to the seller why you are offering less than their asking price they may be inclined to consider your offer. When making a lowball offer that may be based on the condition of the home, it is important that you carefully explain any problems that you may have noticed with the property during your walkthrough. If you have had an inspection done on the property that has disclosed some problem areas, be sure to include those in your explanation.
When a buyer submits a bid that is lower than the asking price it is important that they include other elements in the deal that may appeal to the seller. Including a quick closing in the deal may go a long way in getting the deal done. It is also recommended that you have the money for the home available at the time the offer is made. Delaying a deal because you do not have the agreed upon funds handy can cause the seller to reconsider the entire deal.