Why Lowballing a Seller Can Backfire
When you’re buying a home for sale in Lakewood or Long Beach, it’s up to you to determine how much you want to offer the seller.
Your Realtor® will caution you against “lowballing” in most cases – and here’s why.
What is Lowballing?
Lowballing is a slang term that refers to offering the seller a price that’s much lower than what he or she is asking. For example, if the seller is asking $500,000 for the home, and you offer $400,000, you’re lowballing.
It’s not lowballing if the seller is asking for $500,000 and you offer $490,000.
If you give the seller a lowball offer, he or she has a couple choices. The seller can:
Counter your offer
Tell you that your offer is insulting and refuse to deal with you
Wait for another offer to come in and not respond to you at all
Why Wouldn’t Your Realtor Want You to Lowball?
Sometimes you can make an offer for much less than a home’s asking price. This can work, especially if the home is grossly overpriced – but in some cases, all you’ll do is insult the seller.
Common Mistakes Buyers Make
When you lowball because you can’t afford to pay more, you’re doing the wrong thing. Put yourself in the seller’s shoes – if you’re selling your home and someone comes along hoping to sell it for less than what you owe on it (or less than you know it’s worth), you’re going to say no without hesitation.
Don’t think that because you’re paying cash, you’re entitled to lowball, either – in the end, the seller’s loan gets satisfied, so he or she doesn’t care how you’re paying.
Pro tip: If you do put in a lowball offer, the seller might counter it. You can look at that as an open door to negotiations, which can help put you in the position to get the home for less than list price in the end.
Are You Selling a Home in Lakewood or Long Beach?
If you’re selling a home in Lakewood or Long Beach, we can help. Call us at 562-882-1581 to find out how we’ll market your house to all the right buyers so you can sell it quickly and at the right price.