Arizona Home Talk

By: Ellen James Martin, UNIVERSAL PRESS SYNDICATE 

…To succeed with a lowball offer, Davis says, would-be buyers must be respectful of the home’s owners. They must also stay within a reasonable range of the true market value with their first bid.

“Usually, you can shave no more than 10 to 20 percent off the market value of a property and expect to prevail. You’ve got to be fair and reasonable, not ridiculous. Also, you should be open to a reasonable compromise price,” Davis says.

Despite the seller’s counteroffer, the young couple still got an excellent deal — nearly $13,000 off the home’s current market value, as estimated by Davis.

In a typical real estate market — where sellers don’t outnumber buyers as they do now — lowballing usually backfires. That’s because most owners find their pride punctured by a low offer. Expecting they’ll have other options, they simply refuse to deal with bidders they consider opportunistic.

“Real estate is very, very emotional, especially if the owners have lived in the place for a long while and someone comes around offering a lot less than their house is worth,” says Davis, author of “A Survival Guide for Buying a Home.”

The difference now is that many sellers are taking a more sober, dispassionate view of their real estate. Due to the realities of the market, more are inclined to consider a low offer, Davis says.

But it takes skill and forethought to turn a lowball offer into a winning bid. Here are several pointers for bargain-minded purchasers:

SEE TOMORROW’S POST!