Lowballing is essentially offering a price below a seller’s asking price. Look at it this way, if a broker is asking for a certain price on an item and you offer a lower amount in an effort to price him down – that’s lowballing.
Now in the Boston condo for sale market, the buyers who typically make lowball offers are: Real estate agents, real estate investors, real estate wholesalers, house flippers and property developers.
Real estate agents, for example, are responsible for brokering real estate transactions. In the negotiations process, they may implement lowballing strategies to get the best deal for their buyer client.
The same goes for all of buyers in real estate. The end goal is to get better prices so that they can make money on transactions.
In real estate, investor buyers and their agents are the ones who mostly use lowballing. They’re simply trying to get the best price or cost on a house not only for themselves, but also for their clients and investors that they represent.
Some questions you may want to ask yourself before making an offer on a property include:
- What are the values of the other houses in the neighborhood?
- At what prices are comparable homes offered?
- What are similar homes selling for?
- Are area prices rising or falling?
Luckily, Ford Realty agents can provide you with all this information in a comparative market analysis (CMA). The key is to understand values better than anyone else, so instead of making an offer that offends the seller, you make an intelligent lowball offer with market data to justify your proposal.
Also, watch out for other Boston condo for sale buyers, they could beat you to the punch and steal your good deal if you don’t stay on top of these questions and move quickly.
“Allow other people to speak first; the important factor is not who talks… it’s who listens.”