Offering under asking?

Question

Had a client score a deal 30K under asking. It was listed for 1 week. I sent it to my client and told him let's lowball. We offered under.

Some agents despise throwing out lowball offers, I've found it's always worth the try. A few reasons why I think it's worth doing and what we thought of going into it.

- It was priced high out the gate. Looking at comps compared to the ARV there was not enough margin at their asking. Too much work for a homebuyer and not enough meat for an investor.
- Worst case a seller can say is no. Best case they accept. In the middle they counter. End of the day you are seeing if there is a middle ground, win for all parties.
- Price is not the only factor. For this one we were flexible on the close date to offset offering under. They needed flexibility to move.

I am not saying throw out crazy lowballs on 100 properties for fun. Have reason on the situation. Some sellers care more about certain terms. Some sellers need to sit on the market longer.

If you are going to offer under build rapport and a relationship with the listing agent or seller. Offer with good faith, have attractive terms and be willing to negotiate.

Ryan Brown · Answer

Caleb, I agree. A low offer with a reason behind it is just good negotiating.

One way to find the right properties is to look at how long a home has been on the market and how long the seller has owned it. Every Friday, I put together a list of Louisville homes that have been on the market for 90+ days and have had the same owner for at least 10 years. A long-time owner has usually built up a lot of equity, so they have more room on price than someone who bought two years ago. And after 90 days, many of them are more open to an offer than they were the first week.

That doesn't mean every home on the list is a deal. But it's a good place to start looking for sellers who might accept a reasonable offer under asking, especially if you can also offer something they need, like your flexible close date.

If anyone's looking in Louisville and wants to see this week's list, feel free to message me.

Ametria Chaney · Answer

Caleb, this is exactly how I coach buyers too — the offer isn't an insult, it's a data point. The key line in your post is "have reason on the situation." A low offer with comps attached and a clean pre-approval reads as professional; a low number with nothing behind it reads as a fishing expedition, and listing agents treat those very differently. The other thing I'd add: put your best terms forward alongside the price. Flexible close date, strong earnest money, minimal contingencies you can live with — those cost the buyer almost nothing and they change how the seller feels about the number. Price gets the attention, but terms get the signature. Worst case is a no, and a no with a counter is just the start of the conversation.

Caleb Brown · Answer

Agreed! Lowballs need to be justified

Michael K Gallagher · Answer

the main thing I took away here is that you knew from data and stats that it was overpriced and could defend your clients position, that's the way to do it in my experience. lowballing with a defense and logic makes you look like a profesional, lowballing just to see and at a % of list that a guru told you to aim for makes you look like an amateur.

Offering under asking?

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