Making offers: when to lowball someone?

[Shane Sams]

So, when do you do something crazy like offer 50% for a property?  Or offer way below market value?

Do you do it just to kick off a negotiation?  Do you do it when you feel like the property is way overlisted?

What about when you know they have a ton of equity or have the property paid off and can take almost anything?


Also, how do you feel about lowballing people in general?  Is it a strategy that has its place?  Does it hurt your reputation as an investor, or set you up as a hard negotiator?

Would love to hear any tips, tricks, or lessons learned on starting out LOW!

[Brian Pulaski]

Honestly, I run my numbers and let them tell me what I can offer. I have offered under 40% of the asking price once. I had some info and was actually the highest bidder... ended up with the bank lowering the price and my best and final was 61% of the new lower price, but someone was willing to pay more.

I have bought houses with "low ball" offers and lost houses offering above asking. Just simply work your numbers, go in where you are comfortable and don't over pay.