Ricardo  Mello, Manhattan & Miami Real Estate Broker (Manhattan Miami Real Estate)

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Rainmaker
2,574,016
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I will attempt to answer this as soon as I can pick myself up off the floor. 

Keep in mind, all real estate in local.  Low balls just don't work in my market when a modest 3 bedroom home listed at $950K sells for $1.2M.  
I am sure there are agents in the Rain that work in markets where lowballs can be effective. 

"Reasonable" is in the mind of the person doing the reasoning. We can run the numbers and crunch them all day long and it does not mean someone else will see it.   

May 20, 2018 09:05 AM
Rainmaker
455,178
Dan Tabit
Northstone Real Estate Inc. - Sammamish, WA

Give them everything else they want.  With every transaction I ask the listing agent, "Beside the price, what else is important to your client?"  

Sometimes it's a few things, like staying in the home until school is out, or taking some plants, or wanting the home to go to someone who will appreciate what they did in the garden....  Once I know the intangibles, I discuss with my buyer and make sure we hit as many as we reasonably can.  

May 20, 2018 09:41 AM
Rainmaker
557,024
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Actually I will email you an article I wrote for Yahoo News a million years ago about how to make an irresistible offer. I gotta find it.
Everything's about give and take. Can you give something of value to the seller that would offset the lack of dollars in your deal?
Can you make your deal hard as a rock? Non-refundable earnest money? Waive inspections, waive financing contingencies, waive appraisal, come in with extra cash if it doesn't appraise?
(I advise buyers against such things unless they are absolutely married to the desired outcome, come what may)
SOMETIMES those things make a difference. But timing is important.
If you're in a market where others are going to come in higher than you and offer similar assurances, then your timing is off and you need to attempt that offer in a different market or cycle.

May 20, 2018 09:19 AM
Rainmaker
916,725
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

If you make a low-ball offer you had better be able to justify it.  Not every seller has an agent that can talk their seller off the "offended" cliff. Then your offer goes in the trash and they vow to never accept ANY offer from you or your buyer.   Having a good relationship with other agents is a big key.  I find presenting offers in person helps but that is not always (now days maybe rarely) possible.  I suggest you make a reasonable offer instead of wasting everyone's time. 

May 20, 2018 09:06 AM
Ambassador
2,479,638
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

In our current marketplace, no amount of cajoling will turn a lowball into a successful sale.

However, sharing the data that helped your buyer arrive at the price offered in a different market, will quite often work. 

May 20, 2018 09:46 AM
Rainmaker
277,715
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Cash with no contingencies and quick close.  And include a personal letter from your buyers in which they let the seller know about them and how much they love the seller's home.

May 20, 2018 09:37 AM
Rainmaker
3,681,828
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Ricardo,

I agree with Carol Williams.  It depends on the marketplace, and market conditions.  There is a difference between a low ball offer and what we referred to as "bottom fishers".  Those are the offensive ones.  I had one of those, and he insisted on being part of the presentation.  

My client crumpled the offer into a ball and threw it at him.  And since he was an influential real estate developer, he told everyone he knew about this agent's stupidity.  The agent moved to SF and now works as a barrista.

May 20, 2018 09:24 AM
Rainmaker
559,049
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

A Low-ball offer gets you kick out of competing for a property in my area.  

May 20, 2018 10:42 AM
Rainmaker
2,855,323
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Lots of questions. Lots of listening. Pro1 a conversation with the listing agent. Being in "tune" with your market.  The right combination of timing and events. 

May 20, 2018 09:42 AM
Rainmaker
8,831
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Broker

Based on Carol Williams comments,  I thought it would be better to rewrite the question by adding "reasonable" in order to keep the discussion a little bit more PRO 

May 20, 2018 09:14 AM
Rainmaker
643,948
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

There ae overpriced properties on market, so I always figure value by doing the same thing I would do is a listing agent. If i come up with $450,000.00 as a suggested list price if i was sellers agent, but the current list price is $539,000.00, then an offer close to $450,000.00 is not really a low ball offer. It's only perceived as lowwball by listing agent and sellers.

May 20, 2018 10:33 AM
Rainmaker
4,213,792
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Candice is right.... when you want something, you give something in return..... i.e., if you want a sale contingency in your offer in a buyer;s market, you give the seller the full price or above it.... 

in this market, you don't have a shot with a lowball offer because there are 10 other offers on the table with good terms and conditions and an above list price!!!!

May 20, 2018 10:14 AM
Ambassador
2,017,420
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     In our present market:

          Target a property that has been on the market a long time. 3 or 4 months minimum.   Cash offer, enough to pay the mortgage, the commission and closing costs, and have a few grand left over.  Short inspection contingency, we just want to be assured that the house is structurally sound.  With respect, this is not the price that you are asking, but it is a cash offer, and you can put this behind you and walk away with money in your pocket.  

   

May 20, 2018 11:52 AM
Ambassador
2,702,380
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I honestly try to get my buyers to make an offer that reflects market value by doing a CMA at the time of the offer.  Inventory is thin and you have no chance otherwise.

May 20, 2018 11:40 AM
Rainmaker
2,600,106
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

It is up to the seller. Sometimes a letter of explanation will help and sometimes a letter from a loan officer about maximum qualification. Each situation is different!

May 20, 2018 11:35 AM
Rainmaker
4,552,751
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Have a well qualified purchaser with no contract conditions.

May 20, 2018 11:09 AM
Rainmaker
480,826
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

All cash, no contingencies, close within 7 days, sellers can take whatever they want.

May 20, 2018 10:52 AM
Rainmaker
1,465,419
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

You have some great answers.

May 20, 2018 10:32 AM
Rainmaker
1,154,733
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Ricardo Mello Thanks for the question; you have received several good answers.

May 20, 2018 10:21 AM
Rainmaker
851,923
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Simplicity in terms and flexibility on closing dates usually win.

May 20, 2018 10:09 AM
Rainmaker
2,334,035
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Ricardo Mello it depends on the property, the area, and if it is appropriate.

May 20, 2018 09:53 AM
Rainer
78,068
Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

I taught a new agent class the other day and showed them how many "expired" properties "leave" the market per month. This was in reponse to an agent saying their buyer can't find a property for their first time home buyer. I then pulled up homes on the market from 30-90 day and 90 to 180 days. There are 200 properties on market for 30-90 days. Of those 200 homes 26 had price reductions from $20,000 to $120,000! "Low Ball"? "Reasonal low ball?" They are already there for the taking in our market. And if you don't think we're a "hot" market our Month's Supply of Inventory is 1.7 months with a Days on the Market of 38 days!   Homes on the market for 90-180 days numbered 87 days with some price reductions raning from $150,000 to $29,000. 

May 20, 2018 01:33 PM
Rainmaker
1,449,655
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

"Lowball" implies below value, under market, take advantage of seller.  With that definition in mind I say ... in most markets and most situations, don't waste your time. 

May 20, 2018 12:53 PM
Rainmaker
469,456
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
RE/MAX Valencia, Stevenson Ranch, Santa Clarita

We received an offer that would be considered a low offer and close to a low-ball offer since the buyer wasn't going to budge.  The longer we didn't receive an offer the closer the the sellers were to working with them. These sellers needed to be in escrow within a week or they would lose their new home purchase.  We received an offer just in time.  The strategy of making an offer and sitting tight works for someone with patience and no urgency.

May 20, 2018 12:52 PM
Ambassador
3,550,975
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

A lowball offer won't work in our market except perhaps at the high end, although it's hard to know what you mean by lowball or what your market is like. Cash and a quick close, with few contingencies, could possibly work depending on the seller. Have you had a conversation with the agent to find out what's important to the seller about timing, etc.?

May 20, 2018 12:48 PM
Rainmaker
299,835
San Mateo County Broker Associate Mayra Espinosa
Realty ONE Group Alliance| Call 650-996-8961 - San Mateo, CA
Helping Families Buy & Sell Homes San Mateo County

It depends on the current market. Here in California especially in the San Francisco bay area and silicon valley, all homes are selling way above asking with no contingencies. In this market, there are no reasonable lowball offers, prepare a CMA and show it to your buyers, so they are informed of what is going on in today's real estate market, then you should submit a competitive offer, not a lowball offer. Otherwise, you are wasting your time.  Good luck with your lowball offer.

May 20, 2018 12:06 PM
Rainmaker
1,188,604
Bob "RealMan" Timm
Alliance Real Estate - Minot - Minot, ND
Bob Timm, Broker Associate, Alliance Real Estate

The times I have been successful Ricardo Mello I've attached kind and gentile explainations to the offer so that the Seller has to see it. Telling (verbally) the Sellers agent that this or that sucks never flys.

May 20, 2018 05:24 PM
Ambassador
3,349,442
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Wait for the market to shift.

May 20, 2018 05:10 PM
Rainmaker
483,322
Mike & Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

If it has been sitting on the market for some time. needs work and has a funky floor plan then sure...go lowball it.

Every else better be a good offer...

Eve

May 20, 2018 04:34 PM
Rainmaker
782,847
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Validate it with comps or don't bother in a seller's market.

May 20, 2018 01:36 PM
Rainmaker
1,328,103
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

I'd like to know the answer as well, haha. 

May 20, 2018 01:25 PM
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

In a hot market, lowball offers are not what enthuses sellers... they want a good price and no contingencies... and guess what... more often than not they get them!

May 20, 2018 01:01 PM
Ambassador
1,341,731
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Don’t ask for anything but price. Keep it simple.

May 20, 2018 12:20 PM
Rainmaker
646,936
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Invalid question.

Reasonable and 'lowball' do not exist in the same action simply be definition. Lowball means EMBARRASING to buyer and offensive to the seller.

Reasonable suggests the offer reflects the condition. That is different than the profiteering objective of 'lowball.'

How does one make lowall predation work?

Disguise it as a quick and easy solution to the seller who has one nerve left and the government is standing on it. 

May 21, 2018 04:12 AM
Rainmaker
3,954,205
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

They do not work

May 21, 2018 04:02 AM
Ambassador
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Ricardo Mello - they don't go hand in hand, Ricardo.

May 20, 2018 11:17 PM
Rainmaker
594,267
Richard Bazinet /MBA, CRS, ABR
AZuRE Team - Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

'Reasonable' and 'lowball' are an oxymoron. 

Assuming that a 'lowball' is an offer below market price, then it takes a seller willing to sell at less than market price, meaning willing to leave money on the table. 

Why a seller would want to do that, I don't know. 

May 20, 2018 10:19 PM
Rainmaker
3,549,307
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I tell my clients that if all the plan on doing is lowball offers they need a ne agent

May 20, 2018 08:28 PM
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Lowballs don't work in my area either. Reasonable and lowball usually aren't used in the same sentence.

May 20, 2018 07:52 PM