Perfect your ‘lowballing art!’- Buyer’s guide to the art of offering below list price and actually getting it!

By Tamra Lee Ulmer

At times it is frequent to make a low ball offer to the seller. However the skills that people apply while making the offer determine whether the person will get the offer or not. A common strategy in low balling is by;

Wring a low ball offer to the seller.

A buyer should clearly write down the reasons why he wants the offer to him. Prior to writing, buyers first find out the reason why the seller intends to sell the house. That way it becomes easier to note down why you want the offer and why the seller should work with you. It is important to show the seller and the listing agent that you a confident to go through the process. In order for them to work with the seller or win the offer, then the buyers shorten inspection period and even reduce contingencies. A well written offer eliminates any form of doubt from the seller’s side.

Divert attention ensuring it is not based on price.

It is discouraging to the seller when the buyers put all attention on the pricing. Buyers should skillfully ask for the offer with other reasons such as repair credits, closing cost credits and longer escrow account periods. Depending on the property on sale the buyers might decide to go physical on the offer by basing the offer on the physical condition of the house such as furniture or other appliances. If the buyers receive the deduction then he can still have the higher offer. In other instances the buyer indicates problems associated with the house such as if it needs a new roof and have a clear estimate on the amount of  money you will use to resolve the issue.

Respond to counter offers.

It is common for the buyer to receive counter offers with a relatively higher price. Buyers should however not get discouraged for these. They are encouraged to counter the counter offer so that till they get to a more favorable price listing. There are times when the buyers and sellers have a lot of counter offer till they get to an appropriate price for both parties. After both people agree on one price, Buyers make the purchase process quick before the seller changes his mind and gets a person ready to pay for the3 home at a hi9ghetr price.

Know the kinds of negotiation and the state the value creating moves

A buyer should clearly know the reason as to why they are negotiating. One can have a personal interest towards lowballing or to create a win-win situation. After identifying the type of negotiation, they then create value added moves. For example some homes are normally overpriced with up to one hundred dollars and even more. There are instances whereby a house is priced at say $600,000 and upon speaking to a broker; the buyer realizes that the home is of more price than the actual value. The reason is because sellers base their pricing on the home value some years back while buyers compare the prices on homes sold in the neighborhood a few years back. With that in mind one is able to come up with a clearly written low ball offer.

Make them perceive that it was the sellers idea to say yes to the home.

Most people do not like to be persuaded into doing something. For this reason it is a brilliant idea that the buyer makes the seller to think that they are persuading the buyers for something they are not really into it so much. For instance when the seller ask you pick up the closing costs so that they close the purchase process, if the buyer is not comfortable they can back out and if especially the offer is not considered. Statements which declare refusal leads to compliance which enable the buyer and seller to meet and come up with the right prices for the home or rather resolve issues affecting them.

Negotiate from a win-win perspective.

It is a common mistake with new real estate agents to negotiate as if they intend to wrestle sellers and their listing agent. Such instances are annoying and lead to adverse effects on the interest of the buyer. During negotiations on a low ball offer buyers and sellers and their agents focus on problems arising on the house and how to solve them. The real estate agent then is supposed to show the seller on how the low ball offer will be beneficial to him and how the buyer will benefit too. The method is friendly to both parties and with good communication skills winning the offer is easy.

Meet the seller in person.

As a buyer, it is crucial to have met the seller in person before making an offer. Thus buyers invite the seller for a cup of coffee at the time the seller is available and negotiate in person. Doing this makes a particular buyer mare likely to buy a particular home since sellers are able put a face on a given offer as opposed to other offers received which particular buyers never met the seller in person.

Other tips on winning a low ball offer are to base the low ball offer on the truth. Point out issues associated with the home that are factual. Truth sets both parties free and they are able to stay informed and make quality decision. Basing the low ball offer on the truth gives the buyer confidence and seller can easily take the offer.