Are 'Low Balling' Buyers Killing Your Deals?

PART ONE of a 2-Part Series: Are 'Low Balling' Buyers Killing Your Deals Let’s talk about lowball offers. What constitutes a ‘lowball’, when is it appropriate or not appropriate, and how can you encourage your buyer clients to stop insisting on offering a price that’s unlikely to result in an offer? What is a lowball offer? Let’s define what it is since the term is thrown around all the time. By definition, a lowball offer is an offer that is significantly below market value. Huge News! Tim and Julie Harris are providing 250 live mastermind meet-ups in 2024. Chances are there is an event near you. Best part? These events are free! Grab your spot now: https://app.getriver.io/tim-and-julie This is where the problem can start because, in practice, agents and their clients consider an offer to be a lowball if it’s significantly below the asking price. Asking price and market value are not always the same thing. This brings us to the first step in your Anti-Lowball Action Plan. STEP ONE: Revisit your client’s qualifications. Maybe that’s why they want to come in low! Review your buyer’s qualifications before putting your offer together . Speak with their lender to ensure you’re fully understanding their situation, especially as interest rates and lending standards change all the time. So do buyer’s credit scores, ratios, and downpayment funds. Even cash buyers can have their situations change depending on where their funds are coming from. Some buyers are ‘lowballing’ because that’s their loan limit, and/or the limit of their comfort level. Their decision to lowball is based on their situation, not their opinion of the listing price, even though they’ll say to you that they believe the home is just overpriced. Are you showing homes that are actually out of the buyer’s realistic price range? If so, it may be time for a strategy change. STEP TWO: Determine if the listing is priced correctly. Welcome back to America's #1 Daily Podcast, featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? https://whylibertas.com/harris or text Tim directly 512-758-0206 IMPORTANT: Join #1 Real Estate Coaches Tim and Julie Harris's Premier Coaching now for FREE. Included is a DAILY Coaching Session with a HARRIS Certified Coach. Proven and tested lead generation, systems, and scripts designed for this market. Instant FREE Access Now: YES, Enroll Me NOW In Premier Coaching https://members.timandjulieharris.com Determine the actual market value of the subject property. It may not be the same as the current list price. Do your own comparative market analysis (CMA), before making the offer, to determine value based on comps. Look at recently sold comparable, and pending sales, as well as how the house stacks up versus the active competition. Is the listing priced right or isn’t it? Note: an offer that’s less than the list price of an over-priced home is NOT a lowball if it’s based on comparable sales. Attach your comparable sales with your offer to justify your offer price. REAL ESTATE LEADS, LEADS and more LEADS: Question: What is Tim and Julie Harris's favorite PROBATE LEAD PROVIDER? Simple, https://alltheleads.com/harris Review the pertinent facts that can affect the price. -How long has the listing been on the market? -Have there been price changes? -Has it been on and off the market several times over months or years? Ready to become an EXPIRED Listing Agent? As promised, here is the discount link for the EXPIRED LISTING LEADS: https://www.redx.com/affiliate/tim-and-julie-harris/?aff_code=670699 How does the property look versus the competition? Coming in lower than the list price on a home that’s been on the market for several months, with no competing offers, condition issues, and slow or no showings might be appropriate. See the difference?