We’ve all heard about and seen the low ball offer. In fact, just about every buyer these days says those famous words: “I want a deal.” Some get the unbelievable deals and some don’t. Some are master negotiators at getting low ball offers accepted, and some just try to no avail. So why are some people successful at negotiating a low ball offer and some are not? Let’s take a look at some common strategies that successful low ballers use to get the deal done.
1) Information is power. Low ball buyers do their homework and they get their agent to help them acquire as much information as possible. They look at listing history like how long it’s been on the market, how many price drops there were, and what was the last purchase price of the property.
2) They know the neighborhoods. Low ball buyers have done research on neighborhoods and know where they can get the best deal. They may have been watching certain homes for a long period of time just waiting for the right opportunity to make an offer. Maybe the home owner has had four or five price drops and the research that the buyer has done on the neighborhood tells him that the home is a good value. Once more, the longer it’s been on the market, the more anxious a seller gets and might take a low offer in a weak moment.
3) They hire a good negotiating agent. What I mean by that is an agent that is not afraid to roll up their sleeves dig for information and ask the hard questions of the listing agent. The buying agent is probably the most important person in this equation because ultimately, they have to sell the low offer to the listing agent and seller. If your buying agent can’t make a good case for your low offer with data, documentation, and a persuasive argument, you won’t win the low ball game.
4) Besides the low price, is the rest of the offer incredibly attractive? Some sellers will get past the low price if there are other reasons to accept the offer. For instance, are you paying cash and no loan approval is necessary? Are you looking to close quickly, without an inspection and without an appraisal? All of these factors, while they may seem small, add up to make your offer more attractive.
5) Last but not least, low ball buyers are unemotional and have buying power. If they can’t make a deal on your home, they don’t care. They have two or three more on the list that they can buy. Once more, since they can pay cash, they move more quickly and fluidly without the hassles of lending requirements and excess paperwork.
If you are a low ball buyer, then you know this already. But if you are looking to get into the game, then this is low ball buying 101. If you have any questions, feel free to contact me at the information below.
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