Thinking of Low Balling?

The Austin housing market is one of the best in the nation and even have areas that are technically still considered a seller's market. Still there are deals to be made and coupled with interest rates at historical lows, it is enticing many to buy.

As an Austin area agent, I have sometimes come across situations where buyers will make an offer substantially lower than the asking price on a property in hopes of the seller being caught on a good day or even in a desperate situation. In Real Estate this is called "Low Balling."

Low balling does happen and can work, but usually the successful individuals that employ this strategy typically have:

ALL cash
can close in 7 days
are not afraid of major repairs (most lenders will not lend on distressed properties)
are seasoned investors.

Since most buyers do not have these kinds of resources to utilize, the average buyer will need to tailor their negotiations to be property specific. In Austin, it is rare that a low ball offer will result in anything other than frustration and ill feelings among several parties.

The best way to negotiate a good price for a home is to work closely with an agent that is familiar with the desired area. They will be able to assist you on how to make an informed and financially savvy decision.

As an agent, I have been able to provide my clients with cost saving strategies resulting in offers that have included:

seller paid closing costs
reverse offers
offers where the sellers are required to make repairs prior to closing
inclusion of non-realty items (grills, washer/dryer, refrigerator, etc.)

These results all ended with one very important thing: keeping more money in the buyer's pocket.

There have been times when I have seen sellers refuse to accept additional offers from someone that has made an unreasonable initial offer (a low ball offer). If a buyer is a pain from the very beginning, good chances are that it will only get worse.

To make things as simple as possible, I tell buyers to think back to when they were children on a playground. Then I ask, "Would you go up to another kid, kick them in the knee, then expect them to play with you?" The answer is - probably not.

Date: Wednesday, March, 25th 2009 @ 04:19:58 PM
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