You’re a buyer buying real estate during the housing crisis and you want the best deal possible. Realize that everyone in your same shoes wants the same great deal. How do you accomplish the best deal possible? The answer is not to send through a low-ball offer because you will likely lose!
Let’s put things into perspective: you have a property listed and worth $250,000, and a buyer offers $180,000, it’s very easy for you or any other seller to respond with “no way, Jose” and then keep the property listed. If, Jose offered $230,000, there might be a forward conversation to negotiate.
Sometimes, when buyers throw ridiculous offers out there, sellers refuse to deal with them any longer, because they don’t take them seriously.
After looking at available homes for several months, Jose knew this was a GREAT opportunity. He made another offer, this time at $200,000, but this time around Jose found he was among others interested in the property Jose upped his offer to $230,000, and waited for the a response for days. It still wasn’t enough to secure the deal. Darn it, Jose didn’t get the house. The worst part is he would have gladly paid $230,000+ for the house, but instead, he chose to try to low-ball offer lost.
It’s not a great deal if you lose the house you want to buy. Jose probably would have been successful with $230,000 out of the gate, and happy with the end results. And, he would have saved his family from the stress. Jose is still looking for a home for his family.