Is it ok to make lowball offers as an investor?

[Vinh Nguyen]

Hi, 

I just finished listening to an episode on biggerpockets and the guest (investor) on there said she often makes lowball offers and hoping one would stick. I do love that idea; however, my question is does that come off as disrespectful to the seller's agent, especially if done repetitively? any other repercussions? Thanks! 

[Joe Villeneuve]

You can make offers at any amount you want.  There's a difference between a lowball offer and a ridiculous offer though.  Don't worry about making an offer that might offend the seller...how do you know what they consider offensive?  Some think any offer under their ridiculously high Asking Price is offensive.  Some list ridiculously high to test the waters...or because their agent told them they could get that ridiculous amount...just to get the listing (they know the price will end up being lower...but they got their listing).

Make your offers based on your numbers that generate the numbers that gives you the deal you need.  Don't make offers that you think you need to make just to get the property.  The property isn't what's important.  The deal is important, and the two are NOT the same thing.