We were taught in training, that if you low ball an offer too low, it will insult the seller/agent. I completely agree with that

However, this duplex is at least 12K over priced, 127k, i have previous sold data where the house sold for in 02' for 115k. No major improvements have been done, and the rent hasnt changed much. I think the investor is just wanting to get out of the deal for a quick profit.

I want to make an offer of at least 118k. I would probably give him 120k for it, but just to see what he says. I dont want to make him mad so that he doesnt do business with me at all. Any suggestions?

To avoid offense, in your cover ltr. stipulate your research and comparables and invite them to offer closer comparables which you have been unable to find.... as you want to be sure that the property appraises. :rolleyes:

Write it up with seller paying for appraisal and the due dilligence period does'nt start till after receipt of the appraisal. Buyer is not out any money till you have a firm appraisal.

hrmm.. What exactly do you mean by the due dilligence?

Due dilligence is the period in which the buyer has the right to have an inspection, go over disclosures from the seller, and review CCR's amongst other things. With in this period, if something is unsatisfactory to the buyer, he has the right to rescind his offer.

$118K -- and never mind $120K -- certainly isn't what can be called a lowball offer. It's much less than 10% below the $127K asking price.
Moreover, if the comparables suggest that the real value is only $115K, you'd even be overpaying!
A lowball offer would be $80-90K or even less than that. You have to be at least 25% away from the list price before anyone can properly think you're lowballing them.

Duncan

There is a danger of course on insulting the sellers, they won't be satisfied until they've gained justice, which may be a higher price than your willing.

Remember that it's not about asking, but rather market value. Determine market value and go in with an offer that provides some negotiating room. In this way you are serving both needs and can truley reach a win/win, assuming seller motivation is not strictly to sell high. The sellers may not be ready, but neither will you to overpay unless you have reason (in respect to market value).

Yes, you'll need to take in your comparables, market analysis, etc. and be prepared to challange them on their numbers, but that's the fun of this industry.

low ball offer without offending?

Try presenting the offer with a genuine smile. If they frown on you, get out!
j/k

Well, you'd really have to attempt several offers to find out. Who knows you might get an accepted offer in the process.
j/k

Seriously, your offer is not what I would call "Low Ball." Write it up and hope for the best.
Good Luck!

To do yourself and your client a big favor, don't waste time. If your client really wants the property, you should do what you can to make sure that the offer is to the client's best interest. If the property is out of the range and the market is highly competitive, you need to work on a different strategy. That does not always mean price. I do not believe in "low ball". It is definitely not a good strategy when there are other offers that would seem more attractive to the seller.

If a low ball offer offends a Seller.... that is the fault of the Sellers agent.

An agent must know how to present any type offer and should / must be able to avoid having the sellers be offended with any offer... it really isn't hard... but many agents just don't want to tell their sellers that the sellers expectations are out of line or that a low offer could represent an opportunity to start a negation with an interested party.

This is true of any "low ball" offer... at least as long as it isn't more than about 30% off the low end market value.... if it is... just kill the buyers agent...... Just kidding.... I think...