{"id":1886,"date":"2018-12-22T07:37:30","date_gmt":"2018-12-22T12:37:30","guid":{"rendered":"https:\/\/equipeforbesteam.com\/?p=1886"},"modified":"2019-09-28T12:07:56","modified_gmt":"2019-09-28T16:07:56","slug":"tornades-autres-catastrophes-naturelles-devoirs-de-courtier","status":"publish","type":"post","link":"https:\/\/equipeforbesteam.com\/en\/immobilier\/tornades-autres-catastrophes-naturelles-devoirs-de-courtier\/","title":{"rendered":"Lowball Offer Basics: 5 Things To Know"},"content":{"rendered":"

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There are many scenarios where a lowball offer on a home can be a great buying strategy. You might find yourself in a buyer\u2019s market, or face-to-face with a fixer-upper in need of some serious TLC, or dealing with a very motivated seller \u2013 all potential opportunities to get a home for less than asking price.<\/p>\n

RE\/MAX Canada polled our Facebook followers as to their bidding and buying strategy, and 75 per cent of respondents came back with a resounding \u201cbid low!\u201d<\/p>\n

While there\u2019s no hard and fast rule when it comes to making a lowball offer, there are some things you can do to improve your chances of success. First and foremost, trust your real estate agent\u2019s professional opinion on whether or not to come in at a low price, and exactly how low you can go.<\/p>\n<\/div>\n<\/div>\n

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5 things to keep in mind when making a lowball offer<\/h3>\n

1. Understand the market.<\/strong>\u00a0If it\u2019s a buyer\u2019s market, you\u2019ve got less competition and more negotiating power. In a seller\u2019s market, homes are more in demand, and the chances of a successful low bid are less likely. It\u2019s a matter of simple economics. Trust the market conditions more than the home\u2019s listing price, when making your offer. Have your agent do a comparative market analysis, for insight on what other homes in the area have sold for recently, and go from there.<\/p>\n

2. Days on market.<\/strong>\u00a0How long has the home been listed? If you\u2019ve been keeping an eye on the listings, you\u2019ll notice if a home keeps appearing in your feed. As days turn into months, desperation mounts and depending on the situation, the seller could be more likely to accept a low offer. It could be market conditions that have the home sitting on the market without any nibbles, or it could be the home\u2019s condition. There may be room to come in low, but also a reason to. Have the home inspected, to ensure any problem areas can be fixed, and at what price.<\/p>\n

3. Sweeten a low bid with a clean offer.<\/strong>\u00a0When a quick sale is the seller\u2019s objective, a great complement to an albeit low offer, is a clean offer. The seller likely already feels like he or she is making concessions on price, so removing conditions such as financing clauses will help. To help you stay limber at the offer table, ensure you get pre-approved for a mortgage before you start shopping. You\u2019ll already have been approved for financing, and you know exactly how much you can spend. Removing this condition could tip the scales in favour of a quicker sale.<\/p>\n

4. Understand the seller.<\/strong>\u00a0Knowing the seller\u2019s reasons for listing their home could help inform your strategy. Maybe the homeowner has already bought another home, and needs to upload this one to avoid paying double mortgages, double property taxes, double utilities, you get the idea here. Perhaps the owners have inherited the property, and have no interest in keeping it. A new baby, a new job, or a slew of other factors could also prompt the need for a quick and clean sale.<\/p>\n

5. Make it low, but make it fair.<\/strong>\u00a0Don\u2019t risk offending the seller or the listing agent by coming in with a totally unreasonable offer. Ultimately, every seller wants a fair price, just as every buyer wants a bargain. Don\u2019t waste the seller\u2019s time \u2013 or yours \u2013 with an offer you know won\u2019t be accepted. Be fair, and be prepared to offer reasons for your discounted offer. It could be the market conditions, the home\u2019s condition, the location of the property, the length of time the home has been on the market, or something else entirely.<\/p>\n

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Your success of bidding low will depend on a number of factors, including your strategy, demand on the market, and the seller\u2019s sense of urgency to sell. Work with your real estate agent to ensure your strategy considered your offer from all angles.<\/p>\n<\/div>\n

Source: Remax.ca<\/sup><\/p>\n<\/div>\n

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There are many scenarios where a lowball offer on a home can be a great buying strategy. 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