“Many buyers attempting to lowball a bid can come off insulting and ridiculous. A home carries a lot of emotional attachment for some people. An unbelievably low offer can seem disrespectful. It can also make a seller give the cold shoulder to any negotiations.”
The offer goes to the listing agent who doesn’t have to present it if they feel it is “Frivolous” If it gets presented then it wasn’t. Nobody comes to your birthday party to tell you what schmuck you are for low-balling their property. Low-balling works best when trying to get a deal, not a house that you are attached to, but the two aren’t necessarily completely mutually exclusive.
Common sense should be the only limitation on the offer. If the owner owes more than the offer,and it is not a short sale, or if the neighborhood is “on fire” as far as sales go it isn’t likely to work. Properties with market time,especially short sales and REO’s should be easier candidates. So should fixers with lots of time on the market.I don’t know what the rest of you think an extreme low-ball is but I don’t think 20% is out of the question for something that meets some of the good candidate criteria,. Just don’t expect to get the first one and there will probably be a counter offer if any response at all(hopefully). The odds of getting the entire low-ball are not always good but it is better than paying anywhere near list and nothing is binding on the counter. 1 page non-binding letter of intent is a good way to start. Some lenders require a “in house” proceedure for offering on Reo or Shortsales so it might be better just to make verbal offers to the listing agent and tell that person to talk to the lenders rep. If they won’t it wasn’t likely to be worth going through the procedure. Its like going fishing.
Disclaimer: It is probably better to wait until the market corrects more first.
