| Ok, let's get down to the nitty-gritty on making an | | | | buyer's market can mean some great deals on |
| offer on a home. This process can be quite different | | | | homes but it does not mean that sellers are willing to |
| depending on how the local market looks at the time | | | | let their homes go for less than they are worth. |
| of the offer. In a seller's market there may be | | | | There is one good way to avoid insulting sellers by |
| competition for any given home and competing | | | | low-balling their home. Ask your realtor what homes |
| offers can drive the price of a home up quickly. | | | | are being valued at in that neighborhood. Once you |
| However, the national market has definitely shown | | | | know this information you can tailor an offer that will |
| signs of moving towards a buyer's market and that is | | | | be seen as valuable and fair. |
| a whole different ball of wax. In a buyer's market it | | | | The funny thing about low-ball offers is that every |
| is possible for the buyers to go a little overboard, or | | | | now and then, they are accepted. Either out of a |
| "underboard" as the case may be when making their | | | | desperate need to sell or perhaps relocation needs to |
| offers. Just because it is a buyer's market does not | | | | be done quickly. If you can find these sellers then |
| mean that sellers are going to accept an offer that is | | | | you may be able to get away with making a lower |
| less than the actual value of the home. | | | | (yet not insulting) offer. Networking with your realtor |
| Low-ball offers are difficult things to deal with. Usually | | | | is the best way to deal with these situations as they |
| they are received with scorn by the sellers who | | | | will be better equipped to gauge the seller's situation |
| cannot believe that someone would make that low | | | | and how quickly they want/need to sell their home. |
| an offer. For instance, offering $75-100k less than the | | | | Generally if someone is desperate to sell then your |
| asking price is not likely to be well received by the | | | | realtor should be able to recognize that and inform |
| seller. Chances are that if an offer that low is made | | | | you of the situation. Just keep in mind that ever a |
| then it will be under the appraised value of the home | | | | desperate seller will bristle at getting a dismally low |
| and the seller would be taking a loss in selling it. A | | | | offer. |