Is a low offer a good idea?
When making the choice to purchase anything large, we all want to get the best deal we can. Why over-pay if you don’t have to right? When house shopping, it’s only natural to considering offering the least amount as possible to see if you can score the deal of a lifetime. Is making an offer below the value of a home a great idea? It depends on a few factors.
The situation of the seller is one factor to consider before making an offer. If the seller is motivated and ready to get rid of the home, they are more likely to at least counteroffer, rather than reject the low offer immediately. The seller could be motivated to get rid of it quickly for many reasons. They may need to move quickly, need the funds from the sale, or other personal reasons. Whatever the situation is, the seller wants to get out quickly and will consider low offers. However, if the seller has the time to wait for the right price, they may quickly reject your offer and end any further negotiations. If this is the case, you don’t want to start out low in hopes to meet somewhere in the middle. The low offer could automatically burn any bridges and the option to have the home is gone. Our Southern Utah real estate agents can find out how motivated the seller is for you.
Your situation and personal circumstances have a lot to do with it as well. If you would rather get a great deal, then find the home you love, a low offer isn’t such a bad idea. The worst thing that could happen is the buyer says no and you move on to the next house. Not many people are in that position though. Once you begin house shopping and find the one you love, you generally don’t want to keep searching and making offers. If you are interested in the home and don’t want to lose it, you may want to reconsider putting in a low offer.
You could also consider putting in a low offer if you, and other real estate professionals believe the house is not listed for market value. If the home is in need of a number of costly repairs or maintenance, it may be necessary to make a low offer. When in this situation, it’s very important to work with an experienced, knowledgeable real estate agent.
Finally, the terms of financing can also help determine whether or not a low offer is accepted. A seller may be willing to take a cash offer with a lower price, rather than waiting for the financing to go through.
When thinking about offers, it’s extremely important to consider all options before writing it up. Our experienced, knowledgeable realtors can help you every step of the way.