What's The reasonable Lowball Offers You Have Made On Average?

[Hendra Wijaya]

Hi REIs,

I have been trying to understand the strategies on making offers. I would like to know, based on your experiences, what is the range of lowball offers you've made that tend to get accepted when it comes to motivated sellers?

Like for instance, if a property is valued at 1 million dollars, what percentage would you consider a reasonable lowball offer? $600,000 (60%) or even lower than that?

Thank you in advance and have a nice day!

[Taylor L.]

It's not about the asking price vs the offer, it's about the reasoning behind the valuation. Occasionally you will run into a seller whose property is worth $600k, but they're asking $1 million. You can lay out the logic of your offer, negotiate, and so on. However, if the property is actually worth $1 million and you're offering $600k, you're just wasting your time and energy, hoping to run into a sucker.

It's all about addressing sellers' pain points. By addressing their pain points, you put yourself in a position to get a better price.

Lowballing for the sake of lowballing is just going to result in frustration and a lot of lost offers.

Focus on solving their problem - maybe they're in a tight spot and need a quick sale? In that case, you may be able to get a more attractive value by offering a fast cash close.