“The Art & Risk of Offering Less” Part 3 – Buyers in Kitsap County WA
May 3rd, 2009 by Rich Jacobson
This is the 3rd and final installment in a series entitled “The Art of Offering Less” and deals with the unique nuances associated with tendering an offer that is lower than the asking price.
In the 1st article we discussed the market dynamics that tend to encourage or breed low offers.
In the 2nd article, we shared various strategies for Buyers to achieve success with low offers.
In this final part, we’ll talk about the risks that are inherent with making low offers.
Obviously, the biggest risk you run in offering less is leaving the door of opportunity open for another Buyer to come along and rain on your parade. By this I mean, that while you and the Sellers are negotiating the price, and countering back and forth, another Buyer can come along and offer something more attractive. This effectively puts you in a defensive posture, and usually results in you having to sweeten your offer. As a result, you typically end up paying out way more money than you would have if you had simply offered a reasonable amount in the first place.
Therein lies the true secret of writing a low offer – determining that ‘magical’ initial price that doesn’t insult the Sellers, but yet is still within reason so that it attracts their interests and serious considerations.
As a Listing Agent, I always counsel my Sellers to consider each and every offer as a serious offer, regardless of whether it’s low or not. Unfortunately, not all Sellers are properly represented or counseled. As such, there are those who take low offers as a personal insult and refuse to respond back to the Buyers. At the very least, you should always counter back to an amount you feel is more reasonable.
Just because the market has slowed and the inventory of available homes has increased, don’t assume that every Seller is desperate and willing to consider a lowball offer. Many Listing Agents are now counseling their Sellers to price their homes very aggressively right out of the gate in order to effectively compete against short sales and foreclosures. Be sure to work with a Buyer’s Agent who has an intimate knowledge and understanding of your local market, and can provide you with accurate comparative analysis/justification for home valuations.
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Rich Jacobson is a licensed real estate professional providing knowledgeable empowerment and relentless representation for his clients of residential properties and vacant land throughout all of Kitsap County WA and portions of Pierce, Mason, and Jefferson Counties. You can also find him at KitsapLife.com and Crabbing in the Hood, or e-mail: kitsapagent@gmail.com
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Tags: buyers market, home buyer tips kitsap washington, Kitsap County WA real estate, making a low offer, Silverdale WA Real Estate
To a certain extent, I guess I can appreciate the point they’re making. When real estate dynamics shift to a Buyer’s Market, there is indeed a tendency for some Buyers to hesitate or take a longer time to reach a decision. I don’t know if that’s necessarily a bad thing. Although you do run the risk of possibly losing out if another Buyer makes a move first.
