For example, if the home has been sitting on the market for a long time, and you have a good indication that the seller is eager to sell, there is no real danger in submitting a lowball offer to see what happens.
However, if you are in a competitive market and a new listing hits the MLS at a great price and you know that it’s going to sell quickly, you may want to cut out the chase and simply offer your highest amount, right then and there.
Sometimes, you may even need to offer more than the asking price.
Within hours of the home hitting the MLS, I submitted a bid of $72,000 for the property, wanting to be the first and assuming that any other offers would be full priced but that few would go over.
Had I tried to lowball the seller with a $50,000 offer, they would have laughed at me and moved on to another interested party.
But for me, even at $72,000, the numbers worked great.
It was only a mediocre deal.
Related: How to Make an Offer on a Property Not Listed on the MLS As you can see from these two examples, I submitted an offer on both these properties the day they were listed, yet my strategy was different for each.
However, the more offers you make, the more deals you’ll close, and the faster you’ll reach your financial destination.
Just keep one eye on the financials and the other on the situation, and you’ll do great.