The Biggest No-No...

When buying a home, obviously there are a lot of things that can go wrong. Sometimes, those things are unavoidable but other times they are brought on ourselves. For instance, maybe you end up committing to a home you really can’t afford, or you end up with a money pit that eats through your savings account faster than Tom Hanks can fall through the floor. 

There is one home-buying strategy, however, that real estate agents the world over caution against, and it might not be what you think. 

What Could It Be? 

The unnecessary lowball. 

It’s true! Because so much buying and selling information is public or available at your realtor’s fingertips, buyers usually only see one side of the home’s story and think that they can lowball an offer just for the fun of it. What even is a lowball, anyway? Generally, this is an offer submitted on a home that is wildly or drastically below asking. Oftentimes these offers are made as a means of starting negotiations but sometimes people make them to send a message. Don’t do this. 

Decisions on pricing a home involve a lot of complex data and information from the current state of the market, local comps, and the condition of the home. It’s always worth remembering that the price on the tag often reflects upgrades or renovations made over the years. 

Unless a home listing specifically states that the price is non-negotiable, sellers usually anticipate offers. The rule of thumb, though, is not to offer less than 90% of the list price. There are, of course, exceptions to that rule but by and large, it comes down to respect. If you respect the sellers and are opening negotiations in order to start a legitimate and realistic conversation, then don’t lowball. 

An extreme lowball could backfire and will likely just result in a flat out refusal. Both the buying and selling can be stressful so remember to be kind!