I’m looking to buy a condo in Northern NJ and it’s been on the market for over 6 months. The original asking price was $860K and it’s been lowered four times in the last 6 months to $810K. I want to make an offer of $650K. There was another condo in the same building that sold for $650K last year when the interest rates were 3.1%. Now the interest rates are 7.3%, so my realtor says prices in the area have gone up a lot and my offer is too low.
While I’m not sure my realtor is right in saying prices have gone up that much, I can understand why they might be hesitant to make a lowball offer. After all, if the seller accepts it, then the realtor will have to work for a lower commission. However, it’s worth remembering that the condo has been on the market for 6 months now. And it’s not like I’m trying to take advantage of someone—the seller can accept whatever offer they want, just like I can make whatever offer I want.
I remember making a lowball offer years ago and my realtor said it would be an insult to the seller. But I said, “What do we care? They’re not our friends.” To her credit, she made an honest presentation of my offer. They didn’t accept it, but they made a generous counteroffer that we accepted and everyone was happy.
Ultimately, I think it’s worth making a lowball offer on this condo. If the seller doesn’t accept it, then they don’t have to and there’s no harm done. Worst case scenario is that they refuse further offers from you—but best case scenario is that you get a great deal. So I think it’s worth taking the risk.