Can an offer be to low?

Question

Mom always said that the worst they could do is say NO.

Do you think an offer can be too low?

Can it hurt your reputation to offer to low?

Thanks

Jacob Sampson · Answer

Too low in who's opinion?  That is a relative term and different for every seller.  I think the right move is to run the math that makes sense to you and offer based on those numbers.  Certainly there are people who get emotional about the property they are selling but a sellers response to an offer has little bearing on whether the offer was fair or not.

Nick L. · Answer

@Nick WatkinsIt depends on your strategy.

If you have a scattershot approach like @Jake Thomasthen for sure, just make a bunch of drive-by lowballs and wait until you get lucky.

If you have a more targeted approach like @David Neelythen making unrealistic offers is just going to piss off agents and sellers. I was once brought a first-look opportunity by an established local commercial agent. I made a lowball offer that she openly considered a waste of her time. Guess who is no longer on her list of first look investors?

Jake Thomas · Answer

@Nick WatkinsI make offers every week on properties that have been listed for an extended period of time to see where the seller is at. Typically an agent will come back and say they have already rejected offers higher or they will counter and you will see if the seller wants to play ball. Just last week I offered $80K on a $130K property and the sellers came down to $100K in a day. Still too far apart but you don't know till you try. Give me a shout if you need help. I am a local agent here in GR.

Joe Villeneuve · Answer

You make the offer based on your numbers working out for you.  High, low, or just right is immaterial.  This is REI...not a nursery rhyme.  Your Mom was right...but she left out the most important part of that statement:

"For every question never asked (or offer never made) the answer is always NO...so ask the question (make the offer)"

Can an offer be to low?

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