In a market where the number of available homes and, consequently, the number of sellers, exceeds the number of buyers, no offer can be ignored. However, in the today’s rebounding housing market, making low-ball offers just does not work. In many cases, buyers who make a low offer do not even receive a counter-offer from the seller and may miss out on the property altogether as the seller is more likely to pursue a more realistic buyer.
According to an article by Ken Harney of the “Washington Post”, “a low-ball offer – generally 25 or more off the asking price – allows buyers to see if they can land a great deal, even if they’re willing to pay more.” When the market dictates that home buyers can get great deals on property, many of them feel that they don’t have anything to lose by making an offer well below the asking price. However, as more and more “low-ball” buyers miss out on property because they are making offers that sellers will not even consider, they’re tactics begin to change as they evolve into more aggressive buyers.
Can the buyers really be to blame when they make a low-ball offer? Not really. Buyers are still seeking the best possible price on pieces of real estate– and to each their own. Harney states that “in some cases, a seller isn’t offended by a low-ball offer, but their counter-offer shaves only a little bit off their original asking price.”
The rising median sales price and the decreased inventory for homes and condos in the state of Florida indicate that low-ball offers are going to see less and less success. For instance, in Charlotte County in March 2012, the average Selling Price as a % of List Price for all Single Family Homes was 93.4%. (View reports or conduct your own report at Statistics Report, Southwest Florida Homes )
Harney went on to say that “rolling low-balls at sellers may have been an effective approach between 2008 and early 2011, but in 2012’s environment – at least in rebounding markets – it could be counterproductive if you truly want to buy.” Sellers want buyers who are realistically willing to buy. While it is in the buyer’s power to make an offer below the asking price, it may not be advisable to make an offer so low that it knocks them out of the running for a piece of real estate without so much as a counter-offer from the seller. It is important for the buyer to beware, but it is even more important for the buyer to be smart.
If you are interested in listing your home with Suncoasteam Realty, would like buyer representation or if you have any questions regarding a particular piece of property, please contact Jim Mulligan at Suncoasteam Realty, 941-235-7474 or email to firstname.lastname@example.org.