Tips on Bidding Low
A slow housing market like this one gives the buyer an advantage in real estate transactions. With inventory soaring and buyers remaining cautious, a seller is often more receptive to a price that is substantially lower than what they would have gotten for their property four or five years ago. However, this does not give a potential buyer carte blanche to make a bid that is drastically lower than the listing price. Asking for a deep discount runs the risk of offending the home seller to the point where they may walk away from negotiations entirely. Think it through, and follow these tips before you consider bidding too low.
- Is this a motivated seller? - Some sellers may be more motivated to accept a lower offer than others. Try to find out as much as you can about the seller's situation. Are they relocating to another job in another city? Are they paying mortgages on two homes? Has their house been on the market for a long time? There are many factors that could cause a seller to consider a lower bid.
- Build a case - Tossing a substantially low bid onto the table without any fanfare will often make it appear as if you're insulting the seller, or you're not serious about making a deal. Either perception could end negotiations for good. Get the facts and plead your case. Look at the selling prices of similar homes around the area and research the amount of inventory currently on the market. Write a letter to be included with your offer that specifically plots out how and why you came up with your number. A seller is certainly more willing to entertain a lower bid if they can see good reasoning behind it.
- Prepare for rejection - You're not the only one trying to get the best deal out of this situation. The seller also wants to come out ahead and there will always be a point where your bid is just too low for them to accept. However, a rejection does not always mean that hope is lost. Be polite and present your facts and eventually you may coax the seller into a compromise that is beneficial to you both.
If you have any questions about buying a home in Central Florida, or Central Florida real estate in general, please feel free to contact me or email me directly. You can also call or text me at (407) 421-1052!
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