Buying a house at the lowest price possible is the goal most people have when purchasing a new home, but it can be hard for a seller to agree to an offer if it is too low. If you want to buy a house for a really cheap price by offering a lowball offer, you will need to be cautious, especially if you really want the house you are looking at. Here are some tips to help you understand when to make a lowball offer and how to increase the odds of convincing the seller to accept it.
Look at the length of time it's been for sale
When a house is fresh on the market, it is not a good idea to throw a lowball offer at the seller. The seller may be in no hurry to sell the house if it was just listed, and the seller might not even consider your offer or countering your offer if it is too low. On the other hand, a seller might be a lot more willing to accept your offer or counter it if the house has been up for sale for a long time. Talking to a real estate agent is a good way to gauge a seller's need for selling quickly.
Back up your offer with details
Any offer that is less than 90% of the price the seller is asking is considered a lowball offer in most cases; however, you could offer even less than this percentage if you feel the house is worth the value you are willing to pay. The problem is that the seller might not agree, which is why you may want to have information that backs up your claim. This could include the following types of details:
- A list of comps in the area – Comps are homes that are similar to the one you are looking at, and these homes are those that have recently sold on the real estate market. If the comps prove that similar homes sell for less, you can use this to prove your point.
- Details of work the house needs – If you can prove that the house needs thousands of dollars of work to make it livable, it may help you prove that your offer is close to the true value of the home.
Making an offer on homes for sale can be tricky, especially if you find the perfect house. To learn more about the home-buying process, contact a real estate agent today.