There are times when it makes actual sense to make a low-ball offer, but you must know when these opportunities present themselves. You cannot take a hackneyed approach to making an offer on a property and just low-ball every home owner you visit. The fact is that most low-ball offers are not even considered by sellers, especially not right from the start.
Smart buyers wait, and they pick and choose the time to make a low offer very carefully because they understand that there are other things that must be considered. There are many buyers who are thinking that sellers are salivating and waiting for any offer that might come along, and that just not the case, not even in a soft and still readjusting market.
Therefore, before you go ahead and submit that drastically reduced offer you are considering, step back and take a look at the owner's situation. If you have not considered where the owner stands at this time, then you have not considered the most important aspect of making a low bid. When you make the low bid, you have to consider the seller as much, if not more, than you have considered the market.
Analyzing and understanding the market is fine, but not understanding where the owner stands psychologically makes your analysis moot. However, if you are ready to exploit certain openings when they arise, you are more likely to have your reduced offer accepted by an eager owner, which leads to what you must really consider.
You must look into just how motivated the seller is, and how badly he/she is looking to sell the property and move on. If you find that a house is empty, then the owners will probably have moved into their new home already, which means that the property they are selling has costs and expenses, especially if they have a mortgage.
In this instance, you may find owners who are highly motivated to get rid of a property that is costing them money every month. That does not mean that they will give the property away, but it does mean that they will probably take your offer seriously.
Another instance when you may find highly motivated sellers is when there is a divorce, and the divorce has been particularly rancorous and spiteful. The soon-to-be ex spouses might be willing to take a low-ball offer just so they no longer have any sort of attachment that will remind them of their ex. This is an excellent time to step in and make a considerably reduced offer.
There is another opening when the home has been listed for more than three months and the price has not changed. You will find that this becomes particularly beneficial if the sellers have not seen any real activity during those ninety days because they will probably be considering coming off their price anyway.
If you step in with the right offer, it may just be that the sellers are willing to accept and be done with the sale. However, do not expect people to give away their homes, and make a reasonable offer, even if it is a low-ball offer, and your likelihood of success will increase.
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