Home Buying in Tennessee>Question Details

Valerie, Home Buyer in Tennessee

What's typically considered a lowball offer?

Asked by Valerie, Tennessee Sun Sep 14, 2008

How to avoid offending the seller with a low offer? The house is slightly overpriced, but about $10,000 over what other homes in the neighborhood are selling for...

Help the community by answering this question:


There is not a standard answer for this. Low ball Offer is all in the eyes of beholder and the specific situation of the property. You should consult with your agent, have the agent do a market analysis, find out how long the house has been on market, history of the house, the motivation of the sellers, ..etc. Then you will have a better chance to decide the best offer to make.

Sylvia Barry
Marin Realtor
0 votes Thank Flag Link Sun Sep 14, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA

Twenty different agents could answer this question with twenty different answers but simply put: a low ball offer is one that is lower then the sellers asking price AND substancially below the commonly accepted market value.
0 votes Thank Flag Link Sun Sep 14, 2008
Lowball offers are all relative. I've received $475K on a $569K that got worked out and last week I received a $300K on a $400K with it being the first week on the market. Ultimately, it's our job to present all offers, no matter what.

When an offer is given, a seller has the right to accept, counter or reject. The worse case scenario is you are rejected then lose all footing for future negotiations. Sometimes a home is overpriced because a seller has taken out too much equity credit out of the home and simply doesn't have the money to walk away at the lower price.

Obviously, this seller has his/her/their home ON the market but not IN the market.
0 votes Thank Flag Link Sun Sep 14, 2008
Valerie: If you were my client here's what I would be doing with you. I would be pulling the most recent comps (comparables) that have sold within the last 6-12 months. Then pull the comps that are active. I'd get the average for both.
Second: Based upon those figures, I would discuss with you what the property SHOULD sell for and write the offer up using that figure and include a copy of those comps to backup your figure.
Third: Your agent should specifically request to present your offer to the sellers in person (of course with the seller's agent present) in order for your agent to ensure that the seller's understand totally where your offer figure was generated from.
Buying a home, as well as selling a home is an emotional situation for all parties involved. Realize that there is truth in the statement that a home is worth whatever a buyer will pay for it. If you really feel this is the "IT, the ONE and ONLY, the DREAM HOME COME TRUE", then the bottom line figure is going to be what you are willing to pay for it,,,,or walk away from it. That answer has to come from you.
GREAT QUESTION! Keep us posted please on your decision.
Tina Evans, Principal Broker
Web Reference: http://tinaevans.net
0 votes Thank Flag Link Sun Sep 14, 2008

That is almost like saying.. "What's better? Vanilla or Chocolate. Some properties are listed with little to no room for negotiation; while others are listed with 10-30% room for concessions and flexibility. When making an offer, you could attach the comparable SOLD properties to justify your offer.

Most sellers really don't care to see these statistics and data. They want what they want- if they can afford to hold on- that is what they will do!


0 votes Thank Flag Link Sun Sep 14, 2008
If you serious just make your offer.
Several people have given you advise. Again you need to sit down with your realtor and make the offer.
You'r offer will either get excepted or a counter offer will be placed..
Web Reference: http://www.lilorealtor.com
0 votes Thank Flag Link Sun Sep 14, 2008
You never can predict what willinsult aseller when making an offer. When emotions come into play, all commion sense isout. I have had sellers take fits over an offer of $5,000 lower so you never know. They key is to determine what other properties are selling for, include a letter with your offer or even listing sheets of sold properties on why you are making the offer you are. Then put in writing the offer to the seller. This way you are straight up and what happens happens. A low ball offer is one that is considered way below market price. Most offers are usually 10% under asking price and meet 1/2 way. In your situation it will be how much they want to sell and if they dont owe more than your offering price. good luck with the offer Valerie
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Sep 14, 2008
It has been on the market for about 90 days and they have dropped the price once already by $9000, but this still leaves it's list price $10,000 over what homes around it are selling for (in the $79.9 range). I'm just not sure what a good first offer would be as far as how low under asking price is a typical place to start.
0 votes Thank Flag Link Sun Sep 14, 2008
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