Question Details

Bubble Winner, Home Buyer in Minneapolis, MN

Lowball Offer (Townhome)

Asked by Bubble Winner, Minneapolis, MN Tue Aug 12, 2008

What exactly is considered a lowball offer in this market? 10 to 15% lower than the asking price or even 10% below the lowest price on a house contained within a comparable sales analysis? What I am trying to ascertain is what a reasonable offer might be without being a nonserious bidder who is sort fishing for an outright steal. While I understand it's difficult to make generalizations with the multitude of variables coming into play such as closing costs, seller motivations, cumulative days on market, time frames, etc, I assume that with this deteriorating market, lowerball offers are becoming a lot more prevalent with the buyers having the upper hand. Specifically as a first-time home buyer, I am trying to get some insight with this relating to townhomes, which in themselves seem to hold their price a little steadier (especially in EP) than other single or multi-family homes from what I've been seeing though.

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Brian is correct with all of his statements, in many instances when a client of ours wants submit a low ball I usually contact the listing agent fact find prior to submitting and offer, Knowledge has power.
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1 vote Thank Flag Link Tue Aug 12, 2008
I think you are asking a great question, and let me start by explaining "fair market value". Fair market value is established by what the consumer is willing to pay at any one time for the purchase of a property. Typically, a real estate professional will use a recent history to assist in determining fair market value.

Having said this, a "lowball" offer is purely a matter of seller perception, and buyer's motivation. There really is no determining factor of what may be viewed as a lowball offer with any one seller. Keep in mind that, even if you submit an offer that is lower than asking price, you may have included certain terms and conditions in your offer that strengthen your offer and may be attractive to the seller, even though you have not met them on asking price.

If you are considerably lower than asking price, and have not built anything into the offer to appeal to the seller, they may or may not consider the offer depending on how motivated they are to sell.

In any instance, if you are struggling with your decision, you should consider consulting a real estate professional in your area to represent you as a buyer's agent. They can help you negotiate the best price, in the shortest time, with the fewest hassles. If I may be of any assistance in recommending one in your area, please do not hesitate to contact me!
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1 vote Thank Flag Link Tue Aug 12, 2008
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