If you’re selling a property in Vancouver right now there is a very good chance you have received or will receive a lowball offer. This video explains how to avoid a low ball offer and what to do if you receive one.

What is a lowball offer?

Have a look at my previously posted video on lowball offers

Why are lowball offers so common right now?

Real Estate prices in Vancouver are falling at present. Buyers are worried they will buy a property that will be worth less tomorrow than what they paid for it today. Lowball offers are common right now because it allows Buyers to get the best possible value and potentially get ahead of predicted declines in price.

How a can a Seller avoid getting a lowball offer?

DON’T overprice your property! If you want a good offer, you have to have a good fair price price based on market reality! A property that is priced according to market value will have a far less chance of getting lowballed. A Seller who prices their property were the market is at (not where it was 3-6 months ago!) will have more than one interested buyer and will have the market power to get a lowballer to come up or to wait for other interested buyers.

What should a Seller do if they get a lowball offer?

Don’t angry, get even with a good counter offer! A Seller should always give a counter offer to a lowball offer. Why do I say this? Because you as the Seller never know if the buyer is bluffing. If they are bluffing they are not serious and they will go away. If the Buyer isn’t bluffing there is a very good chance after some negotiation that they Buyer will accept a price that works for the Seller.

I’d love to hear your thoughts!

Lowballing Vancouver Real Estate

It’s a buyer’s market for Vancouver real estate these days and Lowballing is a great way for buyers to get the best deal possible. For sellers a Lowball is an opportunity to get an accepted offer in a time when these are scarce.

Many buyers are afraid to Lowball for fear of insulting the sellers. With a Lowball offer it’s like anything else in life, if you don’t try, you’ll never know!

I put a deal together at 2502-1483 Homer Street. The asking price was $1.1 Million and we got it for $975K in October of 2009. The last sale of a comparable was for $1.096 Million in August. Lowballs work.

What is a Lowball?

A Lowball offer is one that is significantly less than the asking price of a property.

What to Avoid when Lowballing.

Offering what you will pay. Your Lowball offer should intitally be below the amount you actually want to pay. The Lowballing Buyer wants to create the impression in the Sellers mind that the Seller has a good deal because they have got the Buyer to raise their offer price.

Walking away from a sellers counter offer. A Lowball offer allows a Buyer to assess the Sellers motivation. Some Sellers may be desperate, but try to create the impression they are not by responding to a Lowball with a high counter offer. If the Buyer doesn’t respond to the Sellers counter thats teh end of it. You can’t get anywhere in a negotiation if you’re not negotiating. Persistence pays when Lowballing.

How to make a Lowball Offer work in Vancouver.

Give the Seller something. If you are going to come in low on price, make sure to add a sweetener like a quick completion date or a short subject removal date. The seller may look more seriously at your offer if you add these sweeteners.

Make a good case for the low price. If you’ve done your homework and you have some documentation to support your offer you may find the seller comes around. A seller may not have known about a recent transaction that has impacted the market, if you let them know, they may go for your offer.

How to deal with a Lowball Offer if you are a Seller.

Don’t over price your listing! Have a look at this video on overpriced a listings. Check out my post on How to Avoid a Lowball Offers for Sellers of Vancouver Real Estate

Looking for advice on buying a property in Vancouver? Check out my First Time Home Buyer Videos!

If you have any questions feel free to drop me a line!