Friday, February 08, 2013

Low Ball Offers No Longer a Negotiating Strategy in 2013

Just saw a story on Foxnews giving tips for home buyers in the current market.  The one tip that caught my eye was the "look for the home with the most price changes."

When discussing pricing with sellers I advise against intentionally pricing high only to lower the price later.  

When the prices were falling during the past five or so years many sellers learned the sometimes costly lessons of chasing a falling market.

However, the housing market in Brevard County, Florida is shifting.  Prices are steadily rising while inventory is shrinking.

Now my advice to buyers...avoid low ball offers.

With many sellers now receiving multiple offers, an offer of 75-80% of  list price will likely not receive a warm welcome by very many sellers!

Low ball offers often do not even receive a counter offer and may even alienate a seller from accepting another higher offer.

In 2013 the key characteristic of any offer to purchase a house or condo is....

A serious buyer will make a reasonable “let’s talk offer.”