How do I submit a significantly lower offer than the owner asking price and not offend them?

In Buying Property - Asked by Ashley S. - Oct 2, 2008
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Answer(s)

David B.
Broker/Agent
Beverly Hills, CA

If your price is justified, than submit your offer with comps to support your price.

Oct 3, 2008
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Matt D.
Owner/Investor
Franklin, TN

You can also submit 2 offers, 1 that is a higher offer with contingencies and a 2nd one that is lower w/ little to no contingencies. See which one they bite on.
The bottom line is the seller's motivation to accept your offer. We had a similar situation this week, the seller owns about 15 properties and is content to let their property sit on the market for 6-12 months--no rush--they can hold out for a long time waiting for their higher price to come in.

Oct 8, 2008
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Richard G.
Tavares, FL

All too often emotion is related to real estate transactions. It is up to you if the effort involved is worth the time in submitting a low ball offer which you think might not fly. However, you often do not know the seller's motivation and an offer of 50% cash with a quick close might be just what the seller needs right now.

Oct 9, 2008
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Phil B.
Broker/Agent
Wilmington, NC

I wouldn't worry too much about insulting them. Odds are if they are insulted by any offer, even one they won't consider, they are too emotionally involved. Business is business and buyers make the market.
That said, there are lots of ways to figure out what might insult whom.
Do some research. Run the owner's name through the county tax/property records database. Look at how may properties they are into, if a builder how many completed properties they have sitting. Also look to see how much in hock they are to the banks of the subject and other properties. Look for tax or other liens. Prior or recent foreclosures. If it's just a single personal residence, check time on the market and other information. Even driving by to see if they have a newer luxury car will tell you if they're shelling out alot of cash and need out. Finally go by the courthouse and run their name through both civil and criminal indexes. Civil judgments mean money owed and criminal ones mean lawyer fees owed. There are lots of other ways to gauge their vulnerability and the bigger the beggar the less choosy they can be. All depends on how much work you want to do, but I regularly do this type of thing when working with a buyer to determine a good offering price. In some cases the biggest insult is making no offer. Personally I have no problem presenting low ball offers to my sellers either. We can always counter with a few thou under asking to let them know we're not biting but we'll deal. Nothing venture nothing gained and you can't get a deal until you get someone with offer to talk to.

Dec 13, 2008
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Gregory G.
Broker/Agent
San Francisco, CA

Ask them how they are arriving at their price first and if possible get some direction from their agent.
.
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
greg@nnnbrokersusa.com
http://www.gregorygarver.com

Jun 12, 2011
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