Whadda Ya Mean They Said “NO”?!?!

February 23, 2010 · Julie Cleland · 2 Comments

There is a subject that’s been coming up a lot lately…the subject of Low Ball offers. It would seem many are advocates of offering a price on a house that is well below asking & what the current market will support. The thinking goes, you are showing the seller you will not be taken advantage of and you have the upper hand in negotiations. What never seems to be addressed is the notion that the seller might not be interested in playing this game and will simply say “NO”. No counter offer and negotiations officially over.

If a seller wants to sell and a buyer wants to buy then there is no reason a deal can’t be worked out. This is predicated on the idea that both parties are going into this with a willingness to negotiate in good faith. Writing under asking is not a bad idea, writing a reasonable offer below the asking says to the seller “I like your house and want to buy it, we just have a difference in opinion of value.” A low ball offers sends a different message. Read more

How much does it cost to make an offer?

October 2, 2008 · Shokoofeh Nowbakht · Comment here

“How much does it cost to make an offer,” my first time home buyer asked. Nothing, but you do need to write a check for up to 3% of the purchase price, made out to a title company of your choice. This is the “earnest money,” or “good faith money.” This is not a down payment, but just a deposit to secure the offer or contract to show how serious the buyer is. In the simplest words, by default, buyer has 17 days, unless otherwise stated in the contract, to cancel the contract and get their deposit back.