A lowball offer can be a great home-buying strategy in many situations when looking for houses for sale London Ontario. You could be in a buyer's market, dealing with a fixer-upper in need of some serious TLC, or dealing with a very motivated seller – all of these are potential opportunities to buy a home for less than the asking price.
While there are no hard and fast rules for making a lowball offer, there are some things you can do to increase your chances of success. First and foremost, trust your real estate agent's professional advice on whether or not to offer a low price, and how low you can go.
When looking for houses for sale London Ontario, strategy is crucial. In today's market, lowballing is essentially out of the question. When not done correctly, it is interpreted as a sign of disrespect and a failure to take the purchase seriously, as well as a waste of time.
Things to keep in mind when shopping Houses for Sale London Ontario
Understand the market
In a buyer's market, you have less competition and more bargaining power. Homes are in higher demand in a seller's market, often due to an influx of buyers, a lack of listings, or a combination of the two. A successful low bid is less likely to occur, especially when looking for houses for sale London Ontario. When deciding whether to make a lowball offer, consider the market conditions rather than the home's listing price. Your real estate agent has most likely already performed a comparative market analysis, which provides valuable information on what comparable homes in the area have recently sold for.
Days on market
How long has the house been on the market? If you've been looking at houses for sale London Ontario, you'll notice if a particular property keeps popping up in your listings feed. Depending on the homeowner's urgency to sell, he or she may be more likely to accept your lowball offer as the days, weeks, and months pass. It could be due to market conditions or the home's condition that the house is sitting on the market with no offers. A home inspection as part of your offer is a good idea to determine if any problem areas can be fixed and at what cost.
Sweeten the offer:
When a quick sale is the seller's goal, removing the conditions is a great way to sweeten the pot of a lowball offer. The seller is probably already feeling pressured to make price concessions, so removing conditional clauses could help. Make sure you get pre-approved for a mortgage before you start looking for houses for sale London Ontario to help you stay limber at the offer table. You'll already have financing approved, and you'll know exactly how much you can spend. Getting rid of this condition could tip the scales in favour of a faster sale. Before agreeing to buy any home, it is generally recommended that you have a home inspection performed.
Understand the seller
Knowing why the seller is selling their home can help you plan your next purchase. Perhaps the homeowner has already purchased another home and needs to sell this one to avoid paying two mortgages, two property taxes, and two utilities. Perhaps the current owners inherited the property and have no desire to keep it. A variety of other factors could also contribute to the need for a quick sale.
How low is a lowball offer
By making an unreasonable offer, you risk offending the seller or the listing agent. In the end, every seller wants a fair price, and every buyer wants a good deal. When looking for houses for sale London Ontario, Don't waste the seller's or your own time with an offer you know will be rejected. Be fair, and come prepared with a justification for your lowball offer. It could be the market, the home's condition, the property's location, the length of time the home has been on the market, or something completely different.
Your low bid's success will be determined by a number of factors, including your strategy, market demand, and the seller's sense of urgency to sell. Collaborate with your real estate agent to ensure that your strategy is thought through from every angle. Houses for Sale London Ontario are experiencing a major seller market conditions. Currently supply is at an all time low and demand is extreme high.
Looking for Houses for Sale Ontario? Search MLS listings today to find you next dream home. Contact Realtown owner Yasir Khan, Sales Representative at RE/MAX.