First Time Home Buyer - How to Get Your Lowball Offer ACCEPTED when Buying a House
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- เผยแพร่เมื่อ 30 พ.ค. 2024
- First Time Home Buyer - How to get your lowball offer ACCEPTED when buying a house. How to negotiate a lowball offer when purchasing a house.
Real estate agent and Realtor Matt Leighton talks about the best tips, strategies and tricks to get your lowball offer accepted when you are looking to buy a house.
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00:00 - Introduction
0:51 Seller's motivation
1:47 Were the owners living there or renting
3:27 Other offers on the property
4:30 Value of the property
5:28 Credibility
6:34 Build Rapport
8:05 Ask the right questions
Looking for a real estate agent in your city? I have a network of top producing agents around the country. Send me an email and I can put you in contact with an agent in your area
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Find Matt here:
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How to get your lowball offer accepted when buying a house (negotiation tips)
0:26 - What is a lowball offer? A lowball offer is an offer that is substantially lower than the sales price that the seller has no interest in considering.
0:53 - Tip 1 - Find out the seller's motivation. The goal here is a process of elimination. You want to find a property where the seller is losing money, has to sell quickly, or is just significantly inconvenienced by holding on to the property.
3:27 - Tip 2 - Ask the following question: Have there been any other offers on the property? The reason you ask this is to figure out if a lowball offer on the property for sale is even possible. If the agent tells you someone else submitted a low offer at one point and the seller is not interested, then you know you can move on to another property. You don't want to waste your time. But be sure you are phrasing everything to sound like you respect the seller and their time (because of course, you respect the seller!).
4:32 - Tip 3 - Know the market value of the property for sale. Is the house actually overpriced? You need to do your market research to determine the fair value of the house. Study the comparable properties, use apps like Zillow, Redfin, and Homesnap to learn about what recent houses have sold for in the neighborhood.
5:31 - Tip 4 - Have credibility. Don't just throw out verbal offers and ask the seller or listing agent if they will take X amount off of the list price. Submit written offers with your preapproval letter or if you're paying all cash, be sure to have proof of funds. Listing agents and sellers will probably not take you seriously if you throw out verbal offers with no form of proof or credibility to back up your verbal offer.
6:34 - Tip 5 - Build rapport with the listing agent. You want the listing agent to be on your team when you are negotiating a lowball offer on a house for sale. You want the listing agent to be optimistic and encouraged about your offer. And you want them to be confident that you'll be able to close the deal. You don't want to attack the listing agent's price or argue with the agent. You want to be friendly and help the listing agent to see your point-of-view so that the agent can encourage the seller to accept or at least consider your lowball offer on the property.
8:07 - Tip 6 - Ask the right questions (in the right way). You want to ask strategic questions that will allow the listing agent (or seller) to explain to you why they are overpriced, or why the house has been on the market for so long. The goal here is to have the seller or listing agent admit to you that the property is taking longer than usual to sell, or that the property is priced a little bit too high. It's one thing if you, the potential buyer says that the property has been on the market for an above-average time, but the goal here is to have the listing agent or seller admit to you that the property is taking a long time to sell or that they priced the property too high.
10:30 - Tip 7 - Use the words 'fair' and 'because'. Something about the word 'fair' causes people to stop and think. When you use the word 'fair' strategically in negotiation, it causes the other party to stop and ask themselves if they (the seller/listing agent) are being unfair, and nobody wants to be known as 'unfair'. Follow up all your reasoning with the word 'because'. Have a reason for everything. Maybe you are writing the offer at that price because that is all your lender approved you for. Or maybe you're writing the offer at that price because that's the average price in the neighborhood. Have a reason for every action you take when you negotiate your lowball offer on a house.
Business inquires
matt@OrangeLineCondo.com
Matt Leighton - Arlington VA Real Estate Agent
Matt [at] Orange Line Condo dot com
Century 21 Redwood Realty
1934 Wilson Blvd
Arlington, VA 22201
• First Time Home Buyer ...
Hey if you can add in these chapters that'd be dope!
1. :51 Seller's motivation
2. 1:47 Were the owners living there or renting
3. 3:27 Other offers on the property
4. 4:30 Value of the property
5. 5:28 Credibility
6. 6:34 Build Rapport
7. 8:05 Ask the right questions
Done! Thank you so much for the feedback!
1 year later, the term low ball itself needs to be redefined, low ball offer - add 20% on top of list price 🤦♂️🤦♂️🤦♂️
Yea as if every decent house doesn't have a pile of offers in 1 week.
i know Im randomly asking but does anyone know of a tool to log back into an instagram account?
I was stupid forgot my login password. I would appreciate any assistance you can offer me
I just made a low ball offer today! House prices are dropping all across the country now but not enough, hence my lowball offer! Hoping all goes well
Update please 😂
How did it go? 😂😂😂😂
How did it go?
They told him to do one 😂
I've made 2 low ball offers because I'm in escrow, but I also fix and flip every 2 years, hence the reason why my offers are lowballed.
I'm getting ready to buy my first home and have learned alot from you. Thanks so much!
🔥 🔥 great points! Fantastic delivery! Thank you!
Best video I’ve watched about tips on buying a house.Thanks for all this information learned a lot.
Your video popped up on my feed Matt 😊 Great points: love all your tips and also super helpful you included the timestamps with descriptions 👍🏼
Thanks Karen! Hope all is well in Toronto!
what a beautiful video! all my questions answered. many thanks.
Thank you, Matt, for your great tips!
I’m so glad I found your Channel !!! This is so helpful
🙌🙌
Very good presentation. I think it's going to make a real difference in my negotiations. Thank you Mr. Leighton
Seller has asking price, I offered 75% expecting negotiation. Seller accepted immediately. Why? he house was their mom's house and mom has been in Assisted Living for a year, and the kids (her Conservators) could not afford to keep up the house. Believe it or not - $45,000 selling price.
Thanks for the advice!
This is really helpful! Thank you!
Loved your video. Thanks.
Awesome! Thank you
I love your informative videos - they're very enlightening!
Great tips!
I'm a single dad trying to get my first home loan, I'm watching your videos religiously until I can drive my truck to my new house playing the theme song from "Over the Top"
same boat man! good luck!
Great video man. Solid advice! I'm a Realtor / Investor in Oklahoma. This guy knows his stuff. 👍
Thanks man! I appreciate you watching 🙌
Going to try this
great video!
Thanks! Super helpful
Thanks Sharon!
This video is super helpful
Thank you!
Can you do a video on rent to own? I love in Tucson, and I've been seeing a few listings like that. I'm trying to buy a house after my lease is up next year.
Buying here....search for almost a year now, still homeless, boy can I tell horror stories!!! Good video.
I have a question I saw a home in NC for 53,500 it is a foreclosure property it has been on the market since February. Should I negotiate the price to 30,000 all cash with a 30 or 60-day contingency? Please help need your advice tip.
I loved your video.
Thank you!
Great video the word fair is really underrated
Absolutely!
Best video on closing lowballs on TH-cam
Every single tip here is 100% correct. This man knows what he’s talking about, people! Think of your agent as your corner man in a UFC fight. A good one is there to direct you how to throw your punch to WIN.
My buyers agent was a shark. She gave me great instructions. She advised me to come to the house showing in my most expensive outfit, because if you look like money, you’re taken more seriously. We collaborated on a list of questions for me to ask the listing agent at the showing, and she told me to keep a poker face during the showing. Don’t get all giddy and talk about loving the house. It’s hard, but if you demonstrate your desire for the house, the seller can withhold and make you increase your price. Basic supply and demand. Keep your cards close and do not show your hand right away.
Good video,
I'm a first time home buyer,
Looking around i came across a foreclosure that very good needs some work but manageable can i make a fair offer? because is bank owned, your thoughts, ty
Hey, Matt. Love the videos, learning a lot. I had a question about this video: my understanding is that buyers should typically have their own real estate agent to handle negotiations, paperwork, etc., especially for first time home buyers. How do the tips presented in this video pertain to buyers with agents? I may have missed something, as I am a bit confused about how I can use these tips. Regardless, I loved the insight!
Thanks for watching! That's a very good point as I see where you question comes into play as some of these tips are "buyer-to-listing agent" as opposed to "buyer-to-buyer agent-to-listing agent". I would definitely recommend an agent and you'll need to find an agent that can see your vision for the lowball offer. Some agents will say your offer may "offend" the seller or something like that. When negotiating through an intermediary (your buyer agent) you almost need to sell your agent on your offer as well as they will be the one doing the negotiating on your behalf. Hope that makes sense and appreciate you watching and commenting! 🙌
I am looking to buy my first home and I have spotted a house in a decent area for sale that is a SFH up for $200,000 (2 bedroom, 1 bath), in rundown conditions & in need of TLC. I have compared it to similar house which has 3 bedrooms, 1 bath for the same exact price in the same neighborhood and both ranch houses. I know the neighborhood well and there is literally no internet/service on the street the first house is located making it impossible to make calls or access the web without wifi and barely any at the second. I am confident the home I want is overpriced and the second home is more realistic of a price in comparison. I was wondering your thoughts on my research and whether 1. Does the internet speed affect the value of the homes? especially since the street has no service whatsoever. 2. What are your thoughts as a first time house purchase? (Sorry if I seem like an amateur, I’m just now starting to look for a home in my early 20s!)
I just made low offer . Selling price is on flipped house that bought back in June 2023 for 120k and has been listed for 365k. Valued at 355k . So I offered 90 percent of what the property is worth 320 . The guy probbaly put in 100k of renovations so he will make probably 100k profit . We can close in 30 days and most properties around the area go for 330-360. So hopefully my offer gets accepted . House has been in the market for 55 days :)
great info! can you please do a video on how you got your first listing and how you were able to close 50 properties in a year?
Thank you!
Good topic ideas
This is the true "Art of the Deal"
this is from hong kong, nice video ;)
Put 2 cash offers and was outbid. I can’t compete w this market.
I have a way to find the assessed value of a property in my town, and most of these houses listed are going for 2.5 times their assessed value
If you can pay Cash you have a good bargaining position to offer a lower price than the listed price.
Why u gotta do teachers like that bro 😂
as a buyer would i talk directly with the listing agent, or are these tactics my buyers agent would have to use on my behalf?
Your videos are very interesting, even for non UK market. If you could add some slides or animation, it would probably be a good investment for the channel
Thanks for watching! And I appreciate your suggestion! I will add more slides/animations in future videos
LOTS OF TIPS THAT ARE VERY USEFUL, THANKS FOR SHARING- PIERCING INSTINCTS PROPERTY MANAGEMENT #FOLLOWUS
Need advice I am looking to buy this property it's 1 acres of land however it has 2 houses and a barn but the person was a horder and there is cars boats trailers ect everywhere the house are both going to need alot alot of work they are asking 245k for the house I was gonna pay cash.... I have some people telling me it's gonna cost up to 300k for repairs, and that could be on the lower end. Idk if offering them 190k since Disconnect need to be at least 30 to $40000 alone in the cleaning off the property and the houses.
If that's a fair offer or if that's going to sultan I don't know it's been on the market for over seventy days
Can you offer a low ball offer based on the Poot condition of the home
obviously Matt has done his homework.
Thanks Mr. Z
Can they give us the amount of the other offers
I didn't know Agent 47 was a real estate agent...but it all makes sense.
🤣🤣
@@TheMattLeighton But fr though. Great Content, I ❤ 😍 💖 your channel.
Thanks bro!
Is it possibly to bring an inspector with during initial viewings?
Sure! They are most likely not allowed to "do" an inspection, but they can do a "walk and talk" where you walk through the property during your alloted time and discuss any issues
Why u gotta do teachers like that bro 😂
As a first time home buyer, I'm still learning a lot. I was wondering if it's common for the buyer to be in direct contact with the listing agent. I have a buyer's agent and have been told I should never interact with the listing agent. She said that's what she is for. Your video said to have a good relationship with the listing agent, so should I be be talking directly to the listing agent?
I am a first time home buyer as well. I would love to know the answer to this question.
If you are working with a buyer's agent, it is advised that all communication goes from your agent to the listing agent.
We found a home we absolutely love but it needs a lot of work. It's a 4 bedroom 3 bath house and it needs from what we can see before an inspection is all new floors, ceilings, new cabinets and wall repair. The cost of the house is 370k and we think that's way too much for the amount of repair needed just from looking at it
Great Video Matt! I am an Investor in Vegas, Do you work with Investors? If so, do you have any Pocket Listings?
Thank you! None right now
That doesn’t make sense to ask the listing agent was there any offer. The listing agent could just up-mark them to say there’s a couple offer over the asking price to make you over-bid in order to get the house…
I’m trying to buy a property listed at $80,000 and I got pre-approved for $75,000 but I cannot afford the mortgage &DP + closing costs for that high of price. What’s more in my budget is $50-60k with some help for closing costs from the seller. I put an offer in today for $17,000 under what list price was... was this too low of an offer? I can possibly go up $69,000 though I would need more help with my closings but that would be my max bid. It’s very confusing because there aren’t many homes available in the area in my budget- not because it’s a popular location but just because it’s a rural area with not many homes available. The home I put the offer on has been updated and maintained, 3 bedrooms and a little over 2 acres. Other homes in the area are either 2 bedrooms with 1 acre for $60,000 roughly or $90,000 for 3 bedrooms somewhat new updates and a lot more land. So I’m thinking the benefit may be in the sellers favor. But the house has been listed for 7 months and they are eager to sell so who knows maybe my low ball offer may hit that sweet spot since they just wAnt to get rid of it. Fingers crossed 🤞🏼
How did it go?
How did it turn out for you?
@@mulliganstew72 yeah it was too low of an offer. I was related to the people who was selling the house, so I thought maybe if I started low we would go back and forth on a price. That didn’t happen, she never even responded to my offer and instead took a cash offer a few days later 😞
Does not work now in California areas like Sacramento with thousands of bay area buyers coming here.
What if a property has been on the market for more than 90 days , definitely overpriced based on the research. Would a low offer be acceptable?
It's certainly more likely to be accepted!
Im looking at a house that's been on the market for 330 days, it's a new construction, custom home (In an area of custom homes) that I know is overpriced. The asking is $274 per sqft, over the last 2 years the range for similar types of properties sold is between $185-$215 sqft. There's also a house for sale that's directly across the street that's going for $240 per sqft. I want to go in at $215 per sqft and after counter offers, not go over $225. Wish me luck!
How it go?
That’s all I’m giving lowball offers
how do you know who is a buyers agent? I've talked to a few agents and i honestly do not understand the difference.
Most real estate agents are buyers agents as well as listing agents. The distinction is if you walk in to an open house and you want to buy that house, you would want to use an agent other than the listing agent to represent your purchase
@@TheMattLeighton some cases it can be a dual agent as well and ask to split commission
Hey I have a question how low of a price can I ask that is 200k for a home. Or should I ask my realtor for his/her decision
See what other homes have sold for, do your own research and also ask your agent
When giving an offer how long does the seller take to get back? When are you asked to come up with earnest money? Thanks
In Virginia, there's no "deadline" of when the seller needs to get back to you. Could be 24 hours, could be a week. Usually the seller gets back to my buyers' offers within 24 - 72 hours. Earnest Money in my area is due 3 days after Date of Ratification. So if you and the seller sign the contract on Tuesday, the EMD is due by Friday close of business.
Typically decent info, but good luck getting this to work in this buyer's market today! People here are losing offers that are nearly $100k above asking. It's ravenous.
Buyers have it rough out there in this market
I put in a low ball offer on a townhouse and it was rejected
I dont want to use a Buyer agent Im a great talker and saving every penny I can. So is negotiating by yourself a safe route
If you don't want to use a buyer's agent, don't use a buyer's agent. If you feel like you can do a better job, go for it!
This doesn’t work in NY ☹️
I know who is my new realtor going to be ♡
Hi Aini!
Shouldn't my real estate/buyers agent be doing all the negotiating for me as the first time buyer?
Yes. You may need to get your real estate agent on board with your plan
@@TheMattLeighton thank you for the reply! I am putting my first offer on a home today, so I am happy to hear that my agent will be doing all the negotiating lol. I'm not sure I have the ability, even though your video was very insightful. Wish me luck 🤞
🤞🤞
Hello! I am buying my first home Cash! I heard I could negotiate 10-12% off the price of a home ( depending on the sellers urgency to sell ) One agent said he prefers to negotiate 3% off the house - Should I go with someone who is comfortable negotiating higher numbers?
Yes. Find an agent who will work with you. It's not about what the agent prefers, it's about what the buyer prefers
Look at the purchase history of the house (how much the owner paid for it and when) and how much money they spent on improvements over the years. If they bought it for $50,000 in 1980 ($150k adjusted for inflation) and paid $15000 for improvements in 1986 ($45k today), then DO NOT pay $500,000! Secondly, how many improvements will YOU have to make? New kitchen costs $10,000. New bathroom costs $5000. Pushing out the back + a new kitchen/bathroom will cost about $20,000 total. Adding a second floor (assuming the civil engineer clears the foundation as strong enough to take the weight) will cost $70,000. Let's face it, if the owners cared about the home's value, they'd have put some money into it.
How much low is a low ball offer?
If home is $343K and you offer $315K (my case) that would probably be one…
I was looking at a property that has been on and off the market for a year. The owner wanted to use the property but decided not to keep it.i offered $8,000 lower than the listing price.
LOL low balls are an insult. You can price anchor...or you can turn a person off...it's a fine line
Never get if you don't ask
Exactly! Go for it!
@@TheMattLeighton completely agree
Here's a question. A property is in a posh location. it's listed at almost 60-70k below its worth. Inside is pretty beat up, like really rejection worthy beat up. Structural issues/major issues for example roof/heating etc are very good. should the buyer put an offer much above the listing price..? is it worth it
Maybe, but would definitely get a home inspection or tour the property with a contractor
@@TheMattLeighton, thanks for that prompt response, really appreciate it. Tour done with a engineering consultant. We can go above the listing price, but will not be able to outbid other buyers if they start going crazy with the money. So we are just thinking is it even worth stepping in, because we won't be able to enter the race for sure. We are exactly like, in Charlie's position in the "Charlie and the chocolate factory"
The video is about how to make a fair offer, not a lowball offer. Fail
Ask if they had offers make no sense. They could totally lie and say yes, it happened to me.
sorry to hear that
2 mortgages 🤔🙈
This wont work in Australia as the real estate agents routinely lie here.
450k lowball 150k ?? ( the sellers gambled his Ferrari n his new boat lol) that's why he has to sell lol
More like "how to get gazumped" 😂
Except for you’re not supposed to disclose why the listers are selling- your listing agent isn’t the right one if they tell people you’re “motivated” to sell
You're right. You'd be surprised how many listing agents still tell you why the seller is selling if you ask 😁
@@TheMattLeighton lol shady! But yeah I’m sure many do
Oh, I've had milk age better than this video lmao
My realtor sucks.
Sorry to hear that. Anything specific you are disappointed in?
@@TheMattLeighton everything. From putting me into extremely risky offers, to ignoring what I'm looking for and where I want to buy because she doesn't like those areas
That's terrible
@@TheMattLeighton especially as first time buyer. I feel I've learned more from youtube videos such as yours than from her. And the nerve racking part is flip flopping back and forth between" lets offer everything we can" to "we are risking alot and just want you to know you can lose all of this" I just pulled all 6 of my offers because she made me nervous on the purchase.
Can you switch Realtors?
why do they call it low "ball", never seen any balls involved.
Lol
This video is too long, just low ball everyone, eventually someone will fall.
He sounds a little like Ben Shapiro.
I am offended
@@TheMattLeighton Understandably 😭
This doesn't work.this is laughable. Sellers in this market do not give 2 shits about any of this. Their attitude is this is my price take it or leave it.
3 years ago SF hottest market around lol what a difference 3 years makes 😂
I thought this was a very informative video, especially since I’m a new Realtor. You just got yourself another subscriber 🫡
Thank you!