To Low Ball or Not to Low Ball....That is the question.

Everyone as their own opinions on Low Balling. I am one of those people who say, just go for it.

I have had owners of rentals come down over $500 a month before. In a specific case, the listing agent had told me the night before that the owner was firm on the price and would not budge. I spent the next day going back and forth with my clients, who also didn't want to go up much, and the listing agent. By the end of the next day, I had my clients at the price they wanted and they just had to come up with a little more upfront. We had to adjust a few other things, but at the end of the day, the owner came down over $500. My clients got an amazing home, the owner had a tenant, and it all came from a Low Ball Offer.

I've had the same luck with sales. In the midst of all the Short Sales and REO's, there are still normal sale steals out there. I just found a client of mine one. A reasonably priced normal sale. The Short Sales in the area were selling for much less, of course, but the property was still close to being worth the asking. Regardless, we offered 90k less than asking on a property. The owner accepted by the end of the day. My client was amazed. The owner was not in foreclosure, the property was paid for. She just saw that there was a decent offer from someone with plenty to put down and was pre-approved. The unit was built in 06, and the owner paid more than twice what my client was paying. We then found out that the property was only lived in for about 2 months by a friend that was in town for work. So the property was basically brand new. Inspection passed, underwriting was ready, and we closed in less than 30 days. And it all came from a Low Ball offer.

For the Realtors out there that get personally offended by Low Balls, I just have a question: Why?

I work with a lot of investors who like to put in Low Ball Offers, and I'm not one to tell them not too. But lately I have been getting emails and voice mails from Realtors that were so upset with our offer that they felt the need to tell me how wrong and disrespectful I am. Telling me they wouldn't even show it to the owner, and how they have much better offers. Meanwhile, a month later, the property is still listed, and not sold. Its not anything personal against the Realtor, its just a buyer trying to get a steal, all you have to do is say, No. No need to tell me how you feel about me and my client. We know its a Low Ball Offer, we know the property may be worth more than our offer, but that is just what they want to offer.

:)