Should I Lowball the Seller

It all starts out with a low bid. You can't very well go lower after you've previously made a high bid; you would lose credibility and the seller's interest.

However, if you bid too low initially, the seller may not believe that you're in earnest in buying the property and may simply turn your offer down without even a counter. Which brings up the biggest risk when lowballing, you may lose the property entirely.

Now it's a matter of understanding yourself. From an investment perspective, it's better to lowball 10 houses and not get any of them than to pay too much for one house.

On the other hand, if you're looking at this property more as a home than as an investment, you may not want to risk losing it. You may feel that you'll simply die if you don't get it. You just can't lose it!

If that's the way you feel, then don't bother with lowball offers. They're simply too risky for you. Come in close to full price, so that this one won't get away. (In a very hot market, you may want to offer full or even more than full price!)

TRAP—KNOW THYSELF

Are you more investor or more habitat buyer? Are you in love with the property? Or can you just walk away? Are you willing to make offers on a dozen properties before getting one? Or is the whole process so overwhelming that you simply want to get it over with? How you answer these questions should guide how low ... or high an offer you make.

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