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.