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?
-Has the seller recently corrected negative feedback?
-What are the average days on the market for homes like the listing?
-What is the list-to-sell price ratio for the sold and pending comparable sales?
-Has the seller recently rejected offers? If so, what was the reason?
-What else can the listing agent tell you about the seller’s situation, preferred deal terms like closing and possession dates, etc, which can help you put together an acceptable offer?
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.
Coming in lower than the list price on a home that’s been on the market for 24 hours, has wall-to-wall showings, an open house planned this weekend, and all the comparable sales sold for higher than the list price does NOT warrant a lowball price.
See the difference?
LIKE and SUBSCRIBE AND PLEASE LEAVE A COMMENT: https://bit.ly/3NXGxNb
FREE REAL ESTATE SALES TRAINING AND COACHING: Enroll NOW, FREE Real Estate Coaching and Training: https://bit.ly/3aUimkh
EXP REALTY EXPLAINED:
Tim and Julie Harris are one of the TOP EXP REALTY Sponsors in the world.
We would love to be your sponsor at eXp Realty.
Text TIM HARRIS directly to be sponsored by Tim and Julie Harris 512-758-0206.
Our EXP Realty site: https://bit.ly/3NJTPwB
FOLLOW TIM AND JULIE HARRIS:
Nations #1 Daily Real Estate Training Podcast: https://apple.co/3xJgofx
eXp Realty: https://bit.ly/3NJTPwB
HARRIS Real Estate Coaching: https://bit.ly/3tvp0DI
Our #1 international best-selling book: https://amzn.to/3tzHymr
Free DISC Personality test for Realtors: https://bit.ly/3aUimkh
MORE REAL ESTATE TRAINING VIDEOS YOU WILL LOVE:
Peter Schiff Interview: https://bit.ly/3aXC1zN
EXP Realty Explained: https://bit.ly/3mGBVyV
Housing Bubble Popping?: https://bit.ly/3MK62A7
Housing Crash Survival Guide: https://bit.ly/3zxoyZD
5 Must Know Success Rules For This Market: https://bit.ly/3QeSbVv
Real Estate Agent New Mortgage Rules: https://bit.ly/3zCjSld
FAMOUS REAL ESTATE AGENT INTERVIEWS:
100s of interviews: https://bit.ly/3Qk85he
Fredrik Eklund: https://bit.ly/3NMDOpE
Ryan Serhant: https://bit.ly/39fx6tx
Jade Mills: https://bit.ly/3tvZQVC
WHO ARE TIM AND JULIE HARRIS?: https://bit.ly/3mGOWbU
“Our real estate journey began 30 years ago and we knew early on that we wanted to share our playbook to success. We’ve had the pleasure of transforming thousands of careers achieving success and financial freedom. We know what it takes and we’re looking forward to meeting you so we can jumpstart your growth!”
#1 Coaches in the Business by Inman
#1 Coaches Agent Magazine 2022
#1 Podcast for Real Estate by FitSmall Business.
#1 Residential Real Estate Podcast Motley Fool
#1 Best Selling Real Estate Book: 500+ 5 Star Reviews, HARRIS Rules. amzn.to/3tzHymr
EXP Realty Top .05% eXp Influencer. Alpha Group EXP Realty
Copyright 2022, All Rights Reserved Tim & Julie Harris® Real Estate Coaching exp realty teams brokers exp realty coaching exp explained real estate investing real estate leads real estate market