Should You Submit a Lowball Offer to Purchase a Home?

by Susan Cioffi 12/03/2018

If you find your dream house, there is no need to leave anything to chance. But if you submit a "lowball" homebuying proposal, you risk missing out on the opportunity to acquire your ideal residence.

Putting together a competitive offer to purchase can be easy. Now, let's take a look at three tips to help you craft an aggressive homebuying proposal.

1. Study the Housing Market

The housing market fluctuates constantly. If the real estate market favors buyers today, it may shift into sellers' favor tomorrow, or vice-versa. As such, you should study the housing market, determine whether it favors buyers or sellers and craft a homebuying proposal accordingly.

Oftentimes, it helps to look at the prices of recently sold houses in your area, as well as how long these homes were listed before they sold. With this housing market data in hand, you may be better equipped than ever before to differentiate a buyer's market from a seller's market. And as a result, you can boost the likelihood of submitting a competitive homebuying proposal.

2. Know Your Budget

If you know how much you can spend on a house, you can minimize the risk of submitting an offer to purchase that stretches beyond your financial limits.

To establish a homebuying budget, it generally is a good idea to get pre-approved for a mortgage. Banks and credit unions can teach you everything you need to know about different mortgage options and help you select the right mortgage. Plus, if you have any questions as you evaluate your mortgage options, banks and credit unions are happy to respond to your home financing queries.

3. Collaborate with a Real Estate Agent

If you hire a real estate agent, you can submit a competitive offer to purchase on any house. In fact, a real estate agent can offer in-depth housing market insights to help you put together an aggressive homebuying proposal that may receive an instant "Yes" from a seller.

A real estate agent is a homebuying expert who understands what it takes to purchase a home in any housing market. He or she first will meet with you, learn about you and your homebuying goals and create a personalized property buying strategy. Next, a real estate agent will help you pursue houses in your preferred cities and towns until you find one that matches your expectations. And after you discover your ideal residence, a real estate agent will make it simple for you to submit an offer to purchase that fulfills the needs of all parties involved.

Of course, if your offer to purchase your dream home is accepted, a real estate agent will guide you through the final steps of the homebuying process. Or, if your homebuying proposal is rejected, a real estate agent will help you reenter the housing market.

Avoid the danger of submitting a lowball offer to purchase your dream house – use the aforementioned tips, and you can craft a competitive homebuying proposal and move one step closer to acquiring your ideal home.

About the Author

Author
Susan Cioffi

My name is Susan Cioffi. I have been a Realtor for 15  years now. I pride myself in customer service. I have won the Diamond award for volume with my first brokerage, but also won the Customer Service award that same year, so I am very proud of that. I specialize as a Listing Agent,  Property Management, New Home Sales, Buyers, Waterfront, Rentals, Condo Conversions in the South Shore Area (Riverview, Apollo Beach, Lithia, Brandon, Gibsonton). I am active in the community and with the Riverview Chamber of Commerce. Awarded Volunteer of the year in 2007. Also giving to various charities. Each year we raise money to help homeless veterans in the area with their Christmas gift. Also give to Children's Miracle network all year with every closing I have.

Originally from Boston, we moved here over 16 years ago. It's hard to believe it's been that long. We miss family and friends but we love the Florida Lifestyle. I have been married for almost 31 years to my husband, Vin. I have two wonderful children, Vincent (29), and Christopher (23), and a dog, Bandit. Plus my first grandchild, Colton, who is 1 and 1/2.   I also have my mother that live right down the street from house, and my brothers are also close to us. We live in the great community of Lake St Charles.