Strategies For Getting A Property Under List Price

Many house hunters dream of finding a hidden gem: a great house at a low price. While this occasionally happens, it's more common for buyers to try to create their own discount by making an offer below the list price. A lowball offer, significantly lower than the listing price, is often rejected by sellers who feel insulted. While most agents encourage sellers to negotiate, an offended seller may refuse to engage.

Tips for Making a Successful Lowball Offer

1.Know Your Goals

If you truly love a house, avoid making an extremely low offer that might scare off the sellers. Assess what mortgage you can afford and the house's value. Consult your real estate agent to determine if a lower offer is reasonable. If your goal is to find a bargain, consider offering around 25% below the asking price and see how the seller responds.

2.Understand Market Conditions

Stay informed about the local real estate market. In a seller's market with high competition, lowball offers are less likely to succeed. Conversely, in a buyer's market, or for homes listed for several months, sellers might be more willing to negotiate.

3.Respect the Sellers

Treat sellers with respect, even if you think the house is overpriced or in poor condition. A low offer should be accompanied by an expression of appreciation for the property, which can help smooth the negotiation process.

4.Leverage Your Agent

Have your agent contact the listing agent to discuss your offer and gather information about the seller’s motivations and past offers. This can inform your strategy and make your offer more compelling. An experienced buyer’s agent will be able to ask the listing agent the right questions so that you can make an appealing offer even if it is under the list price. 

An offer below the list price isn't always the best strategy, but in the right context and with the right approach, it can lead to significant savings. Stay informed, be respectful, and work closely with your real estate agent to increase your chances of success. If you are ready to begin your home search, be sure to give our team a call today! We can help you find the perfect home and negotiate an offer that makes both parties happy.