As more and more homebuyers enter the market due to low, low interest rates many still want to make low ball offers. That is understandable. You are a homebuyer trying to find the sellers bottom line. But how low can you go? That is always the question.
Erick Blackwelder my brother-in-law real estate partner shares his thoughts and experience on this subject. Many home buyers believe they can offer $20,000 - $30,000 less than what a home is listed for.
As interest rates remain low, and the more home buyers that enter the marketplace, inventory levels will most likely remain low. That means more competition for you. If you are hoping you can make a low ball offer and that a seller will accept that. For your plan to work, you will need to look at homes that others have rejected. You will need to look at homes that need repair, or short sale homes that can take months ( sometimes a year) to go to closing or you could try making an low ball offer on an overpriced home that has been sitting on the market for quite sometime. You success will depend on the type of financing you have been pre-approved for. CASH is KING. The stronger your down payment and your terms are for the seller the better your chances are of getting a low ball offer excepted.
TFP- (Tip From Peg)- For Sellers. It is important for you to remember that we must sell your home three times. We need to sell your home to the market, then to the buyer and then to the bank through the appraisal process. Homebuyers use all types of financing and some buy with cash. When you have a CASH Buyers traditionally the offers will be one to two percent lower than a financed purchase. Curious to know how many homes were sold by cash in Prince William County Virginia? Check out the stats for September Most homebuyers need to finance a home loan. In our area conventional financing, FHA Financing and VA financing are the norm.
For more helpful tips and local Woodbridge Virginia real estate information visit http://ErickandCompany.com
" You would want to hire me as your REALTOR®, if you're looking for a high energy, positive, take charge,knowledgeable person that is passionate about helping you get what you want! "
That's me! I'm easy going, and prefer to communicate by email, text and I use the latest technology to not only to stay in touch with you, but to market homes for sale as well and to negotiate.Still not sure I'm the right local professional for you? Check out my LakeRidgeVARealEstateNews blog or head on over to my LakeRidgeVAHomesForSale.com website to learn how I have others just like you sell or buy a home in the local area.
Read Success Stories Here
To search for home currently Active Sale right now Start Here
The area's I service in Virginia are Lake Ridge, Woodbridge, Manassas. If you live outside these area's let's talk. If you have found my information helpful and you like what you see, chances are if I cannot help you, I know another REALTOR® who can.
Tip: when reading any blog post, pay close attention to the date post was written as homes sell quickly. Call author for up to date information.
Do you need help? Have a question? Contact me now
Note: This real estate blog is written by me Peggy James and it is is my opinion and may not reflect the opinion of Exit Choice Realty 14067 Crown Ct, Woodbridge Virginia 22193.
I have been blogging since 2008 and I am a full time REALTOR® .
As a buyers agent I look at the tax value of the home and run a CMA of the solds in the area. I will suggest to the buyers to offer 10% less and see if we get a counter back. I also suggest that it is okay to counter back the counter from the sellers.
If I am a listing agent I want TOP Dollar for my sellers....Oh my..... shoe is on the other foot....
Carol- Wow, good luck with that one. What home buyers don't seem to understand is that the banks know the value of the home and the bank received insurance on the loss of the home. So they can afford to sit on a home as long as it takes until a serious buyer comes along and will pay fair market value or at least an offer that makes sense. Even in REO properties I would imagine their needs to be a win for the buyer and a win for the bank ( terms)
Richard- Any agent who does not look at the comps when making an offer is someone I would caution home buyers to shy away from. And the offer all depends on what's happening locally. Are their a lot of distressed properties around, have their been a lot of sales where sellers did not have to pay closing costs, or where sellers got close to their list price? Again what buyers have to learn is that the sellers did not just pick the list price out of the sky. They sat down with the listing agent ( maybe several before listing) and determined a starting point. It's not rocket science, however in order for real estate to sell it has to be a win/win situation in most cases.