When it comes to buying a house, many people feel that the realtor’s opinion is the most important. But when it comes to making an offer, the buyer is ultimately in charge. Realtors may not always agree with a buyer’s offer, but in the end, it’s the buyer who pays the price and makes the decision.
Realtors often discourage buyers from submitting lowball offers, which are offers that are significantly lower than the asking price. But why do they feel so strongly about this? Is 10% below asking price considered a lowball offer? And does submitting a lowball offer affect the realtor’s reputation?
First of all, the answer to whether or not 10% below asking is a lowball offer depends entirely on the market and the house in question. In some markets and for some houses, 10% below asking is considered a lowball offer, and in others it isn’t. It’s important to do your research and understand the market you’re in before you submit an offer.
When it comes to making an offer, an investor once gave me some advice: in slower markets, if your offer doesn’t embarrass you, you’re not going low enough. This means that if you’re willing to explain and defend your offer, then it’s likely not a lowball offer.
That being said, submitting a lowball offer can still be a risky move. Sellers are often offended by offers that are significantly lower than their asking price, and they may be less likely to negotiate if they feel like they’re being taken advantage of. Additionally, realtors may be hesitant to submit a lowball offer because they are concerned about the effect it might have on their reputation.
At the end of the day, it’s up to the buyers to decide what offer they want to submit. Realtors may not always agree with the buyer’s offer, but they should respect the buyer’s decision.
In my own experience, I saved 70k on my house after my realtor scoffed at my offer. I had to tell him that I respected his opinion, but I was the one paying for the house and ultimately it was my decision. The shock on his face when the seller accepted was the highlight of the whole process.
In conclusion, whether or not 10% below asking is a lowball offer depends entirely on your market and the house. Realtors may not always agree with a buyer’s offer, but ultimately the buyer is in charge. It can be a risky move to submit a lowball offer, but if you’re willing to explain and defend your offer, then you may be able to get a good deal on the house.