Dallas Real Estate – Low Ball Offers
buyers who are in a position to invest in a home in this buyers market are in the advantageous position of being more likely to get there low ball offer accepted. But whether the market is a buyer’s market, a seller market or some in between, lowball offers can result in big savings to a buyer if they are presented and negotiated properly. Let's take look at what NOT do when making a lowball offer: 
Common Mistakes Made by Lowball Buyers· Unqualified to Pay More. Don't tell the seller your price is fair because that's how much the lender has qualified you to buy. Sellers don't care what you can or cannot afford to buy. If you can't afford to buy the house, that's not the seller's problem; it's yours. · I’m Paying Cash so my Offer is Better. It's all cash to the seller in the end. Most buyers don't seem to realize that. If a property will appraise at selling price and the buyer's credit is acceptable, a conventional loan transaction will close just the same as a cash deal. Consider it a wash. One of the main advantage to offering cash for a home though, is that it removes the financing contingency, the right for a buyer to walk away if a loan isn't approved. But most loan contingencies follow the same number of days as other contingencies. It's not really a big selling point. · Walking Away. Some buyers get all bent out of shape and walk away from their transaction when the seller counters their offer at more than the buyer was prepared to pay. Maybe the counter was the list price. Maybe less. It really doesn't matter that much. The point is the doors of negotiations have opened up.Strategies for Getting the Lowball Offer Submitted· Find out the Seller's Motivation. If you don't know why the property is being sold, you will need to find out what the seller’s needs are or won’t close the deal. · Write a Straight Forward Offer. Dot T's and cross I's. Shorten inspection and option periods, waive reduce or some contingencies and submit proof of funds of a pre-approval letter from a lender. Don't give the listing agent a reason to question your ability to close. Appear decisive, qualified and ready to close. · Always Counter the Counter Offer. It goes without saying that the first counter is only an invitation for the buyer to offer a second counter offer. · Take Attention Away From Price. There are many other considerations than the sales price. It's a good move to change tactics and ask for other concessions such as seller paid closing cost, repair credits, longer escrow periods, etc. · Give a Logical Reason Why Your Lowball Offer is Fair. Don't insult the Realtor by handing over a list of comparable sales from the . Show them that you have done your due diligence. Make notes on each sale that compares it to the property that you are making an offer on. Maybe the higher priced homes had remodeled kitchens or bathrooms. If the home you want to buy is not updated, then knock off a reasonable figure reflecting the remodeling work from the seller's list price.When Your Lowball Offer is Rejected Don't pack up and go home with your tail between your legs. Just be patient and wait. Sellers have their reasons for rejecting offers. Maybe you made an offer on a new listing, when the seller thinks that a really great offer is just around the corner. Let them sit out on the market for awhile. After a month or two has gone by, resubmit your same offer. Just cross off the date, but leave enough of it so the seller can see how long it's been since you last made an offer. Then write in the new date and resubmit. Will a low ball tactic work for you? In most cases no but if you have the time and patience you can find a great value in a Dallas home that meets all your needs.
Common Mistakes Made by Lowball Buyers· Unqualified to Pay More. Don't tell the seller your price is fair because that's how much the lender has qualified you to buy. Sellers don't care what you can or cannot afford to buy. If you can't afford to buy the house, that's not the seller's problem; it's yours. · I’m Paying Cash so my Offer is Better. It's all cash to the seller in the end. Most buyers don't seem to realize that. If a property will appraise at selling price and the buyer's credit is acceptable, a conventional loan transaction will close just the same as a cash deal. Consider it a wash. One of the main advantage to offering cash for a home though, is that it removes the financing contingency, the right for a buyer to walk away if a loan isn't approved. But most loan contingencies follow the same number of days as other contingencies. It's not really a big selling point. · Walking Away. Some buyers get all bent out of shape and walk away from their transaction when the seller counters their offer at more than the buyer was prepared to pay. Maybe the counter was the list price. Maybe less. It really doesn't matter that much. The point is the doors of negotiations have opened up.Strategies for Getting the Lowball Offer Submitted· Find out the Seller's Motivation. If you don't know why the property is being sold, you will need to find out what the seller’s needs are or won’t close the deal. · Write a Straight Forward Offer. Dot T's and cross I's. Shorten inspection and option periods, waive reduce or some contingencies and submit proof of funds of a pre-approval letter from a lender. Don't give the listing agent a reason to question your ability to close. Appear decisive, qualified and ready to close. · Always Counter the Counter Offer. It goes without saying that the first counter is only an invitation for the buyer to offer a second counter offer. · Take Attention Away From Price. There are many other considerations than the sales price. It's a good move to change tactics and ask for other concessions such as seller paid closing cost, repair credits, longer escrow periods, etc. · Give a Logical Reason Why Your Lowball Offer is Fair. Don't insult the Realtor by handing over a list of comparable sales from the . Show them that you have done your due diligence. Make notes on each sale that compares it to the property that you are making an offer on. Maybe the higher priced homes had remodeled kitchens or bathrooms. If the home you want to buy is not updated, then knock off a reasonable figure reflecting the remodeling work from the seller's list price.When Your Lowball Offer is Rejected Don't pack up and go home with your tail between your legs. Just be patient and wait. Sellers have their reasons for rejecting offers. Maybe you made an offer on a new listing, when the seller thinks that a really great offer is just around the corner. Let them sit out on the market for awhile. After a month or two has gone by, resubmit your same offer. Just cross off the date, but leave enough of it so the seller can see how long it's been since you last made an offer. Then write in the new date and resubmit. Will a low ball tactic work for you? In most cases no but if you have the time and patience you can find a great value in a Dallas home that meets all your needs.
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