If you are a home buyer and purchasing a home in a buyer's market, then you are very lucky. Here, you have the chance to grab a low-ball offer. In a buyer's market, there is huge home inventory and the number of buyers is less. So, it is relatively easy to obtain a low-ball deal. On the contrary, in case of a seller's market, it is difficult to obtain a low-ball offer as there is low inventory. Anyways, if you can grab a low-ball deal, it helps you save a lot of money and finally become the owner of the house. Anyways, home buyers commit some common mistakes while making the low-ball offer. Here, we discuss about some of these mistakes -
1. Not correctly understanding the pulse of the market
Before making the correct low-ball offer, it is important to correctly gauge the pulse of the market. Your real estate agent should make a thorough comparative analysis of the real estate market so as to find out the fair market value of the property. In case it is a buyer's market, the real estate agent should encourage the home buyer to make a very aggressive offer. Chances are there that the home buyer may obtain that offer. Again, if it is a seller's market, where the inventories are down, an aggressive offer will not be accepted. Here the home sellers are most likely to stick to their asking prices.
2. Not properly justifying your low offer
It is an art to justify the offer which is well below the seller's asking price. Your agent should properly explain the reasons behind making the low-ball offer before the seller. Your agent should not be too harsh in criticism. This may jeopardize the deal.
3. Not selecting the right property agent
Not selecting the right real estate agent while making a low-ball offer may sometimes prove out to be very costly. Sometimes, agents are unwilling to offer a low-ball offer which can offend the lenders. Many real estate agents are more interested to complete the deal and get their commission. They are not much interested in clinching the best deal for the home buyers.
4. Not making an easy-going offer
When you are making a low-ball offer, you need to ensure that there are some attractions for the home sellers. There should not be any contingency or impediment attached in the payments made to the seller. For instance, a home buyer should not have to sell a house so as to purchase the house for which he/she is bidding on. Home buyers should have to ensure easy and clean payments to the home sellers.
Sometimes the home seller may be a bank. Bank is the seller when the property is a foreclosed one. The bank may accept a lower offer in case the home buyer makes an all-cash offer. Bank may not be interested to work with a home buyer who takes out a mortgage loan to purchase the foreclosed house.