As the housing prices tumbled, some buyers became more daring than the market suggested. They were proposing offers that were much lower than what was considered fair market value. As if sellers weren’t insulted enough, now they are negotiating offers beyond offensive. With the influx of foreclosures and short sales, many investors were bidding on multiple homes at once and offering prices as low as 15% to 25% below the asking price. The annoyed sellers would respond with a rejection as expected or a presentable counter response. The buyer would use this ploy on more than a few sellers with the understanding their chances are better winning the lottery, than actually purchasing a home. These buyers normally have representation from more than one unsuspecting realtor. After one excursion with a buyer that’s testing the waters, as they say, most agents realize this is nothing more than a time-consuming low-baller that is not willing to compromise.
If homeowners and realtors were dependent only on these type of prospects, there would be no homes sold and most agents would be on the unemployment line. There are differences between buyers making low-ball offers or buyers seeking the best possible bargain. The deviation between the two are the bargain hunter will eventually negotiate a respectable price, where as the low-ball prospect does not barter. These prospects are easily identifiable by their insistence that the market is still plunging and their refusal to pay more than what their perceived opinion of home values are. These type of consumers make a name for themselves very quickly.
The low-ball prospect makes up a small percentage of the activity, or the inactivity in this case, of the housing market. They have been weeded out by the serious buyer that wants to take advantage of the unique combination of low housing prices and interest rates. With so many properties receiving offers and some multiple offers soon after hitting the market. Owners can minimize their chances of attracting the low-ball prospect by simply pricing their property at a value that will appeal to a number of diverse buyers. If a seller has three proposals and one is a low-ball, they can promptly sweep that offer under the table. As the housing market continues improving, there will still be a sprinkling of buyers looking for that inconceivable deal. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks at Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.