Lowball Offers

Submitting a Lowball Offer without Calling the Listing Agent

The listing agent can provide invaluable information that will help you to write the offer in such a way that the seller is likely to accept it. If your agent doesn’t call the listing agent first, for all you know, that home might already be sold. Always call to find out how many offers the agent has received.

 Example:I received an offer yesterday on a listing that has 7 offers pending short sale approval, 6 of which are thousands over list price. The buyer’s agent submitted a lowball offer without calling. Just faxed it over. It was a waste of my fax machine paper because it won’t be presented.

Submitting a Lowball Offer With a Low Deposit

Earnest money deposits typically vary anywhere from $1,000 to 3% of the sales price. If a buyer submits an offer way below list price and sends along an earnest money deposit of $100, it makes the buyer appear as though the buyer is living paycheck to paycheck.

Submitting a Lowball Offer With A Plea For Acceptance

Sellers don’t want to read a hardship letter from a buyer and don’t particularly care if a buyer has fallen in love with a home the buyer cannot afford. Banks are even less forgiving, especially if the home is listed as a short sale or a foreclosure.

Telling a seller that a buyer doesn’t qualify to pay list price sends a signal that the buyer should be writing offers on other homes that fit that buyer’s price range and not this one. It makes the buyer appear weak and uninformed.

Submitting a Lowball Offer With Fake Comparable Sales

Unless the home is ridiculously overpriced, the listing agent has already pulled comparable sales to support the sales price before putting the home on the market. Sending the listing agent a list of sales from another area insults the agent’s intelligence and suggests that the agent is incompetent.

It also shows that the buyer’s agent does not know the neighborhood or its surrounding properties. Ideally, a buyer’s agent wants to win the listing agent’s cooperation, not alienate the listing agent.

Submitting a Lowball Offer with Concession Requests

If it’s not bad enough to irritate the seller with a lowball offer, some buyer’s agents toss in concessions on top of an already low price. Some ask for a closing cost credit, totaling 3% to 6% of the sales price. Or they ask the seller to carry the financing on a land contract.

Some sellers are willing to give a cash credit to buyers, but generally refuse to do so on a lowball offer. It’s like throwing a pie in the seller’s face with your left hand, followed by another pie from your right hand.

There are better ways to win lowball offers than making these 5 mistakes.

For additional information on submitting lowball offers, please contact:

  Tami Rapaport’s Team
Coldwell Banker Residential Brokerage

130 Dean Drive
Tenafly, NJ. 07670
Direct Line: 201-227-2045
Cell: 201–665-5558
201-567-7788 ext. 127
Fax: 201-567-3220
Email:
Tami@TamiRapaport.com

 

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About tamirapaport

I have been a Tenafly Realtor for many years and continue to offer excellent service for my friends and clients. I have been fortunate to be the only realtor to achive Platinum Level Sales Award for 8 years in a row! (NJAR Circle of Excellence 2002-2009) and in 2008, I ranked #3 out of 3,900 Coldwell Banker agents throughout the entire state of New Jersey! I love my job and my committment shows. I am also a member of Coldwell Banker International President's Premier, the top 1% worldwide of the heighest sales ranking within the company. Awards are great recognition, but my clients will tell you I get the job done! I am multi-lingual and speak fluent Hebrew as well as English.
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