Lowballing on-market houses for brrrr

Innovative Strategies
7yFollow

Lowballing on-market houses for brrrr

Teddy Grooms
Rental Property Investor · Tucson, AZ · Member since 2019 · 18 posts · 2 votes

Has anyone had any success lowballing on market houses for brrr?

0Reply
15 views

Most Popular Reply

Kelly DeWinter
Member since 2018 · 259 posts · 159 votes
7y

yes, I do it all of the time , the worst a Seller can say is No, The best a Seller can say is Yes. Any offer at least starts the negotiation process. I even submit offers repeatedly as a house sits on the Market. I bought a condo for 43K after haveing 3 previous offers at the same price turned down.

2Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Kelly DeWinter
    Member since 2018 · 259 posts · 159 votes
    7y

    yes, I do it all of the time , the worst a Seller can say is No, The best a Seller can say is Yes. Any offer at least starts the negotiation process. I even submit offers repeatedly as a house sits on the Market. I bought a condo for 43K after haveing 3 previous offers at the same price turned down.

    2Reply
  • Teddy Grooms
    OP
    Rental Property Investor · Tucson, AZ · Member since 2019 · 18 posts · 2 votes
    7y

    @Kelly DeWinter I honestly didn’t expect this type of reply, it’s something I’ve been thinking about for a while! Thanks for your reply. I’m excited to give this method a shot.

    0Reply
  • Kelly DeWinter
    Member since 2018 · 259 posts · 159 votes
    7y

    @Teddy Grooms I forgot to add their List price was 67K. I seriously just ignore the List price on foreclosure,REO,fixer upper and distressed properties. I run my numbers and make the offer based on my numbers, and not the list price

    1Reply
  • Teddy Grooms
    OP
    Rental Property Investor · Tucson, AZ · Member since 2019 · 18 posts · 2 votes
    7y

    That is brilliant! Thanks so much for the reply! 

    0Reply
  • Mike M.
    Rental Property Investor · Member since 2018 · 42 posts · 10 votes
    7y

    @Teddy Grooms

    I recently hesitated to lowball on a potential rental property but my wife said, “the worst they can say is no”. So, I offered $80k on a home that was listed for $96k and had been on the market for >200 days. They countered at $84k. I’m sure my realtor cringed at my $80k offer but she submitted it. So far so good.

    0Reply
  • Teddy Grooms
    OP
    Rental Property Investor · Tucson, AZ · Member since 2019 · 18 posts · 2 votes
    7y

    @Mike M. That seems like a great deal!

    1Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    7y

    @Mike M.

    I don’t consider a $80k offer on a property listed for $96 to be a low ball.

    I took a property back through foreclosure in which all told I was in for about $215,000. I had an appraisal that said the value was $600k. ( the property was a very specific user type in poor condition in a rough area). My broker recommended listing it at $599k and see what happens. I ended up accepting $300k with $60k down and financing the balance myself.

    Most great purchases are made by offering and negotiating a price seriously below list price. Only a few are offered at a discount to market price.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Mike M.
    Rental Property Investor · Member since 2018 · 42 posts · 10 votes
    7y

    @Don Konipol

    Well, as a “Pro” and “Specialist” I’m sure you have many examples that beat my rookie “lowball” example. As this was my first “deal”, I’m fairly proud of the fact that I was able to negotiate 12% lower than asking on a 1.5% property. Just trying to prop my fellow and future RE investors up. This is why I rarely post on forums...

    2Reply
  • Tanya Rooney
    Flipper/Rehabber · Roseville, MN · Member since 2018 · 73 posts · 38 votes
    7y

    @Teddy Grooms heck ya!! I have an awesome agent that will put in offers for me no matter how low. A lot of times I see an investment property or a flip and think well I can make it work at that high of a price, so I’ll figure out the price it does work and if it’s a flip I want I will still offer on it. Sometimes I get counters at asking price. Sometimes I get counters in the middle. I think trying it is a great idea. Eventually you’ll get one! My first flip was on the market for about $135k. I offered $108k, I think we settled on about $115k. A few days before we closed I had to lower my offer because of what it appraised at and they agreed to lower to $107k to close the deal. You just never know what you can manage to get done!! :)

    Happy hunting!!

    2Reply
  • Melissa Jolley
    Rental Property Investor · Niceville, FL · Member since 2019 · 89 posts · 62 votes
    7y

    I am an agent myself and love this strategy. I did have some investors offer below asking on a home that I knew would get multiple offers once. I wanted them to get it because it was such a great opportunity but they brushed me off and there were a crazy number of offers. I like to go in low on a property that others have overlooked. I find that it works best then. It is so funny because I will call the listing agent of a property to feel them out and they will say "we have a couple offers coming in" or something. This always happens when they have been on the market for a long time.  I am thinking "reallllyyyyy?"

    0Reply
  • Teddy Grooms
    OP
    Rental Property Investor · Tucson, AZ · Member since 2019 · 18 posts · 2 votes
    7y

    @Don Konipol

    Thanks for the reply! I love the way you structured that deal!

    0Reply
  • Marco Lopez
    Real Estate Agent · San Antonio, TX · Member since 2019 · 27 posts · 6 votes
    7y

    Most listings require POF letters. This is no problem when using traditional finance as they provide you one after you are pre-qualified.

    However, I'm curious how y'all are getting POF for the HML, PML, or cash offers?

    Secondly, are y'all writing all three of these offers as a cash offer or conventional financing?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free