REAL ANSWERS
What do you think of low-ball offers?
A low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price. The term often scares real estate agents as well as sellers because such offers question whether the home is priced properly.
Some experts contend that while any offer can be presented to the seller, a low-ball offer can sour a prospective sale by discouraging the seller from negotiating at all. Moreover, unless the house is way overpriced, the offer will probably be rejected. Some persistent buyers overcome these odds by making a raft of low-ball offers until they succeed.
Generally, “a seller’s advertised price should be treated as only a rough estimate of what (the seller) would like to receive,” write Ralph Warner, Ira Serkes and George Devine in their book “How to Buy a House in California” (Nolo Press, Berkeley, 1993). Most real estate experts encourage buyers to learn about the seller’s motivation so that they can get the best deal possible.
Also, learn what comparable homes have sold for in the area so that you can determine whether the home is priced right.
Resources: “How to Buy Real Estate for at Least 20% Below Market Value” by John T. Reed (John T. Reed Publishing, Danville, 1993).
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