How Low Of An Offer Should I Make?

You almost can’t help reading the news or browsing the Internet these days without hearing about how many home owners are still extremely desperate to sell their homes and about how banks are willing to sell homes for less than they loaned on them. So how low should you be making your offers?

You should always try to get the best deal possible and it is always worth negotiating to see how great of a deal you can get. However offering too little could mean offending the seller and result in them being unwilling to counter offer or continue any further negotiations with you. Your real estate agent can help guide you as to what the fair market value of a property is and get a feel from the seller or their agent as to what they will be likely to accept, though they do have to walk a fine line to avoid breaking ethics and state real estate laws.

The two most important factors that will help you get the best deal on a new home are firstly understanding the seller’s needs and motivations and secondly backing up your offer with facts and figures.

Not all sellers are most concerned about getting the highest price for their home. Today most home sellers are more concerned with getting enough cash to move somewhere else and be confident that whichever offer they choose will go through to closing without any issues or hold ups. Often offering a quick closing and having few contingencies can be much more attractive than a higher price and a closing date months away.

It is hard to argue with numbers and facts. So when making an extremely low offer make sure that you back up you price with figures. This not only means pointing out how many other low priced homes are for sale but highlighting how much money you will need to invest in the property to do repairs as well as how much they have to lose by passing up your offer and taking their chances in the current market.

While you want to be sure that your offer is submitted in the best possible light and your points given careful consideration it is often better to not to present it yourself. Too often feelings can get in the way of smart decisions so let the facts talk and have your real estate agent take care of negotiations. They are professional sales people and know how to motivate a seller to action. If you do not have an agent, then negotiating by fax or email can also give you time to give careful thought to any counter offers and avoid making spur of the moment commitments you may regret later.