3 Common Buyer Misconceptions About Making Low Offer

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You’ve found the house you want! Now is the time to make an offer the seller can’t refuse. If you are thinking of making a low offer,  think twice. 

Why? It’s a sellers market, which means it’s a competitive market right now with other buyers bidding for the same house. If your competition outbids you, they will get the house. 

Offer a low price, but don’t expect to be closing on that home anytime soon. 

Here’s 3 things thing to re-consider before you make an low offer:

“I want to submit a low offer.”

Before you want to submit a low offer on a house, check the Comparative Market Analysis (CMA) that can be provided to you by your Realtor.  A CMA will show you market data for similar homes in the area and will help you determine what offer priced based on this range that would be reasonable.

Take a moment to analyze why you want to submit a low offer.

“I found online that this house should be worth way less than the seller is asking.”

It’s easy to get a false idea about home values based on certain automated valuation databases available online. Online information is often based on a limited set of facts about a house, such as square footage and number of rooms. Important factors are missed such as: desirable school district or the location of a property.

Ask your Realtor how these online valuations work before you make a decision based on them.

“Why is the appraisal lower than my offer?”

If the appraisal of the house comes in low, talk with your Realtor before using the appraisal as a basis for your offer. Your real estate agent can explain the appraisal process and it’s implications.

Simply put, before you submit a low offer on home, talk your real estate agent. Find out the reason behind why you are thinking about making a low offer. Then do more research to get down to the bottom of what the home is really worth.

 

Joe Moshe
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Joe Moshe

Joe Moshe is the Broker/Owner of Charles Rutenberg Realty Long Island, offering 100% commission to Agents. With over 1000 agents, it's one of the fastest growing, most progressive real estate brokerages on Long Island.
Joe Moshe
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