Tips on Bidding Low

With a inventory higher than it's been in years, the buyer certainly has the upper hand in this housing market. Faced with a sea of competition, sellers have been forced to slash prices if they hope to have any chance of making a sale. It's tempting for a buyer to use this current market to their advantage and make drastically reduced offers. This is understandable, of course, everyone wants to get the best deal possible, but it can be risky. An offer that is much lower than the listing price runs the risk of offending the seller or making the buyer look like they're not serious about making a deal. Follow some of these tips for bidding low:

 

Gauge the Seller's Motivation
There are many outside factors that could prompt a seller to accept a lower bid on their home. Perhaps they're moving out of state for a new job. Perhaps they already bought a new home and now have two mortgage payments every month. Perhaps their home has been on the market for months. Try to get as much information as you can about your seller's situation before you make an offer. Often, the more anxious they are to sell their home, the lower the price they'll be willing to accept.

 

Plead Your Case
Don't just toss a low number onto the table and hope your seller responds favorably. Do your research and build a case. Look at the amount of inventory on the market. Look at the recent selling prices of comparable houses in the area. Give the seller a clear and logical reason for the number you chose. It is a lot easier to coax a seller into your way of thinking when you have the facts on your side.

 

Prepare Yourself for Rejection
Ultimately, everyone wants to come out on top of this deal and your offer may be too low for your seller to ever consider. If your offer is rejected, don't give up hope. Be polite, be open-minded and be well-informed. With the facts on your side and a little civility (not to mention, help from your friendly neighborhood Realtor) you and the seller may be able to come to a compromise that benefits the both of you.