Back HomeTips on getting the lowest price for a home when buying
Buying a house is one of the biggest purchases that you’ll ever make in your lifetime. That’s why buyers will naturally want to get the best price on the property they want.
One of the ways that allow buyers to save on their home purchase is by making a lowball offer. This is a risky strategy in any negotiation but it lets you buy the house for much less than what the seller is asking for.
The trick to making a smart lowball offer is to keep things reasonable. Otherwise, you risk offending the seller and losing out on the home. That’s why you always need to provide good and solid reasons when asking for a lower house price.
Follow these tips below for making a guilt-free lowball offer when you’re buying a house in Texas:
Check how long the home has been sitting on the market
An opportunity to make a lowball offer comes when you find out that the home you’re eyeing has been on the market for too long. On average, homes that are in high demand would sell within weeks. But if the property hasn’t had any takers for more than three months, the seller will be more open to entertaining lowball offers.
Evaluate the home’s condition
Homes that need to be updated or are in need of repairs give you plenty of room for negotiation. Whether it’s replacing the roof or fixing doors and windows that won’t close properly, major structural repairs such as these are a good reason to ask for a lower home price. Sellers may also be more open to accepting a lower offer instead of spending more on the additional repairs.
Consider the time and season
Time is also a factor in whether making a lowball offer is a good idea or not. If spring is the most ideal time for sellers to put their home on the market, on the other hand, the holidays (especially around the fourth quarter) are the best times for buyers to search for great deals. During these times, there is less real estate activity, less competition, and more room for negotiation. Some sellers may also be in a hurry to close before the start of the new tax year.
Research the current market
It’s not uncommon for sellers to overprice their homes. If you’re aware of the fair market value of the home, you can ask for a lower price. Asking for not more than 10% to 15% below the list price is acceptable. Just remember to be respectful when presenting your reasons. However, if the home is priced fairly or located in a sought-after neighborhood, you may have to think twice before making a lowball offer.
To learn more about the current market in your preferred area, take a look at comparable sales here. Also known as comps, comparable sales tell you about the pricing of recently-sold homes that are similar in location, age, construction, condition, and features to your home of choice. Check out the type of the market, as well. A buyer’s market makes the best climate for issuing price negotiations.
Ask your agent to communicate with the seller’s agent
The best way to know if the seller would consider your offer is to have your agent work with the seller’s agent. Through your agent, you can learn more about the seller and why they are selling the house. Are they moving to a different area because of a new job? Are they selling the house for financial reasons? Knowing the seller’s motivation helps in creating an offer that meets their needs. The seller’s agent can also give you clues on how low the seller is willing to go.
Find ways to make your offer appealing
Since you’re making a lowball offer, you can compensate for it by shortening the inspection time, reducing or removing contingencies, and making sure that you are already pre-approved for a mortgage. For the seller to accept your offer, you need to show that you are serious and ready to buy the home.
Avoid being aggressive
Aggression gives the perception that you’re only in it for the best deal, and this is a common mistake made by some buyers who use this approach as they pitch a low ball. Win with intelligent and mindful reasoning instead.
Work with an experienced real estate agent
The process of buying and negotiating for a house in Texas can be intimidating, especially if it’s your first time. That’s why working with a knowledgeable real estate team like Berkshire Hathaway HomeServices (BHHS) Caliber Realty can help make your buying experience a smooth and positive one. Give them a call at 979.694.8844 or send an email to sales(at)bhhscaliber(dotted)com.
