presenting low-ball offer

9 Replies

folks... last time I was in this situation I was getting very nervous, when I tried to dial seller's phone, by the time I get to the seventh digit I would just quit. finally, I mustered enough courage and told her my number. and when she accepted I flipped over from my chair and spelled the coffee. hardly believed it!!.
once again I am in the same situation.This time it is a bigger investment. I think I know what is my homework: CMA, House condtion, select the listing that are suitable for me, etc. but how do you drive the seller to come to accept your low offer. what is your strategy (excuse the spelling). I would like to here from you as pros any suggestions and recomendations please.

It is what it is. You come up with the numbers that work for you and make that offer. If the numbers work for them you have a deal. Something to remember in real estate everything is a wish. The list price is the owner saying I wish that can get this much. The 1st offer is the buyer saying I wish that I could buy it for this. Reality is somewhere in the middle. If the price gets to high you have to walk. Don't be afraid of insulting the seller. I tell my clients if we get a low offer remmber the people that looked at the house and did not make an offer well they did not want it at any price.

There are some basic negotiating techniques that you can tactfully use to help open the seller to a lower price, such as pointing out repairs, talking about slow market conditions, or anything negative about the property or market. The bottom line with low ball offers is that not all sellers can or are going to accept your low offer. Its a numbers game, so focus on making enough low offers to sellers with equity(equtiy so they CAN accept it if they want to) to get one accepted.

Little more insight into this subject... I am dealing with FSBO, it is not in the market yet. I dropped a business card size card with a note if he want to sell and he called me. I discovered that this would estate sale with proceeds from the sale divided between at least 3 family members. any thoughts and recomondations? can you share your experience regarding presenting a low offer and how did he come to accepted? help me bring this fish to the shore :cap:

My STRONGEST recommendation is to not get attached to any deal. The sellers might be set on a near retail price, so remember its a numbers game.

I say that I am currently attaching myself to one down the street from where I live. Now I am attaching myself to the numbers. They are asking 25K when its worth 45K for me. I am foaming at the mouth trying to get a contract but its a complicated divorce situation. I think I need to follow my own advice.

Usually low ball will get no response or rejected flat out.
However, a good rule i have used is trying to shave off at least 10% from the sale price.
In some seller's market, this is harder to do and might be less.
however, in a buyer's market i would start with a 15% reduction...
after a counteroffer, you know that the seller is willing to talk more on price rather than just rejecting your offer period.

Its something i been doing and been sucessful...give it a try.


BINGO...accepted offer at 295K repairs about 70K resale value according to comp 450K. Not to get attached with property R. Webber was good recomondation in playing hard ball with seller. thanks to all of you

Sun, I couldn't make money only shaving 10% off of list price. Normally even when the property is in dire need of repairs a realtor will start out asking full ARV for it. Eventually they discount the property down enough to compensate for the repairs needed, but I still need more room than that to profit from the deal. In a rehab situation I use up 10% in just holding costs and paying a realtor to resell the property, not including financing costs, closing costs, repairs, and most importantly my profit. Depending on your market, I'd recommend 70% of the ARV minus repairs be your maximum offer on a rehab deal.

I must admit I am not an experienced investor like most of you here. however, having an interest in REI and working for the brown co. gave me a good sense of knowledge about the different areas -Chicago- and houses value. I for my part I was being conservative in my numbers it could sell for a higher price. the worst that can happen is that I will break even and that is very very unlikley. But to help me understand... what should be a resale value to make this investment worthy to you?

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