Posted on: 23 August 2017
Shopping for the right home is not usually an overnight event. It usually takes time to look at a lot of different homes to find the one that is right for you. As you begin shopping for homes, it's important to understand how to make an offer on the house you want to buy. Some people do not understand this enough and end up making lowball offers to sellers. Here are three reasons you shouldn't make a lowball offer on a house you want to buy.
A lowball offer is an offer that is significantly lower than the amount the seller is asking for the home. For example, if a house has an asking price of $159,000, offering $140,000 for it would be considered a lowball offer. This is $19,000 less than what the seller is asking, and there is very little chance that the seller would accept this offer.
The first thing to understand about this is how it can come across as insulting to the seller of the house. With a lowball offer, you are basically telling the seller that the house isn't worth what he or she is asking. Lowball offers can make sellers feel bad, and they can even make them angry.
The asking price is probably fair
The second thing to consider is that people do not usually just put a price on a house without doing any research. In fact, most buyers will research a lot of factors before coming up with a price to ask. They may ask their agent about the value of the home, and some sellers even hire appraisers beforehand to find out exactly what their homes are worth. The price of a house is probably fairly close to its value, which is why you should think twice before placing a lowball offer on a home.
The seller might reject it
While sellers have the right to counteroffer an offer, some will simply reject an offer if it is too low. If the seller is angry with the lowball offer, he or she might simply ignore it and not even respond to you. If you really like this house, you may end up losing out on the deal by making an offer that is ridiculously low.
When you find a house you want to buy, talk to an agent, like one from ERA Kings Bay Realty, before making an offer so you can choose an amount that is fair and reasonable.Share