If you are looking around for a home, and have found one that you love, it is often worth the risk to see if a low offer might be approved. Many lowball offers enter you into negotiations where you can buy the house for much less than the listing price, even if your first offer isn't approved. Here are some things to keep in mind if you want to attempt a lowball offer.
Be Pre-Approved for a Home Loan
One of the most important things to do if you want to give a lowball offer is have all your finances in order. Make sure you have a good percentage of the house price to leave as a deposit and contact lenders to get pre-approved. The seller doesn't want to wait around for you to get approved for a loan when you aren't even offering the listing price. If you want to increase the chance of them approving your low offer, give them a reason to. If you're already pre-approved, they know the transaction will go smoothly and might accept it. If you can offer cash, you have an even better shot.
Get Help from a Real Estate Agent
Having a real estate agent regardless of the type of offer is a good idea, but it is especially good for lowball offers. The agent knows the market and how to handle these types of offers. They will have good strategies for the right way to word the offer letter to increase your chances of having the offer approved. While you can do this on your own, you definitely will have more luck by hiring a professional to assist you.
Know the Local Market Value
Don't just give a lowball offer because you found your dream home and it happens to be more than what you have. You need to be realistic when giving the offer and do your research. You should only be giving an offer lower than the listing price when you believe the house is currently overpriced. You know this by learning more about the local market value. Look up the value not just of this home, but other homes in the area. If the listing price is average for the neighborhood, you don't have a good chance at having your offer approved. Try to raise it a little before submitting the low offer.
Don't Disrespect the Seller
When you submit the lowball offer, don't disrespect the seller by telling them their home isn't worth the listing price. This is a common mistake made by people that haven't made this type of offer before. Telling the homeowner about all the ways their home is in disrepair or that there isn't a good school system in the area isn't going to push them toward accepting your offer. This is why you should go through a real estate agent and gain professional negotiating power.
Searching for a home a hundred miles away from where I was previously living was hard. There was no way for us to take a trip up to see every single house that we found online to see first-hand the condition that it was in and how big it truly was. I had to find a real estate agent that I could trust to help us find several houses to make a trip up to see in a single day. I created this blog after going through the buying process and making the move. It is my hope that if you are buying a new home far from your current one, that the tips here will help to make it an easy transaction for you.