Before you dive in I have a question for you to consider. What's red and smells like blue paint?
Buying your home does not have to be complicated or tricky. If you do it right, it is a pretty straight forward process.
You see, buying a home is like two people taking a walk together. If buyer and seller want to have an enjoyable walk, they must both adjust their pace, stride, and conversation with the other person in mind. If both buyer and seller approach the process in this fashion, the buying/selling process is literally like a walk in the park.
I will address the sellers and over pricing their home next time, but today I want to focus on the buyer and the dreaded ‘low ball offer’. Sure, on HGTV when you are buying an island or your lottery dream home it works. In real life it never does.
Buyers fail to realize that getting their offer accepted is only the first step in a long walk with the seller. I have been on both sides of this experience and this is what happens.
The Seller
Is angry and insulted by the buyer. Not a good way to start the walk and quite frankly I have no interest in walking with you at all.
Is either not going to respond at all, or will counter to a number at or close to the list price.
Has now determined that they dislike the buyer and don’t want to deal with them.
The Buyer
Thinks that this is just part of the negotiating game.
Does not realize that they just sabotaged their purchase (I hope this wasn’t their dream home)
The low-ball offer is a gut punch to the seller. If a buyer truly loves and wants the home, they are unlikely to repair the damage caused by the low offer and they end up losing the opportunity. You can’t un-punch someone!
How do you make the right offer then?
Obviously use comps for recently sold homes that are in the same neighborhood and have the same features, number of bedrooms etc. If you feel that the home is overpriced, then it is perfectly ok to offer a lower amount. However, try this approach. Make your offer the highest that you would pay for that home to the point where if the price were even just $1 higher you would be ok with passing on it. Make your offer and don’t budge. If the seller accepts, great. If they don’t, then you can at least sleep at night knowing that you did not overpay for a home.
Too often buyers miss out on a great home because they tried to steal it first. All they are left with is regret and sleepless nights. In many cases an angry wife. Don’t be that guy.
Oh, and for the record, red paint. Red paint is red and smells just like blue paint. Don’t overcomplicate or over think things. The answer is usually simple.
Every scenario is different so if you want to talk offer strategies, I am here to help. I have done this hundreds of times and I know I can help you get your offer accepted.