We’ve all heard it happen so many times that it has almost become ingrained in our minds as the natural order of real estate shopping – start with a lowball offer and then haggle back and forth to a middle ground. But the truth is that this isn’t really as effective an option as most people realize, and in most cases presenting your best offer first is often the better choice. It’s not always the case, but the majority of the time it’s a smart move. Here’s why.
First, presenting your best offer first eliminates a bit of hassle from the process. Instead of back and forth exchanges trying to meet somewhere in the middle, you can flat-out say that you’re making your best offer. This means there’s no room for negotiation, and will eliminate that aspect of the process completely.
It also saves you time. Instead of wondering and worrying about whether you’re going to get the home you want at the price you want to pay, you’ll know quickly whether you will have your offer accepted. It gets you in your home quicker, or at the very least lets you know that you need to consider looking elsewhere.
You also avoid losing the house of your dreams. There are plenty of stories out there of people missing out on buying their dream home by a couple of thousand dollars. And while sellers in Florida are very motivated to sell, that doesn’t mean you’re the only person in the state looking to buy a home. Throwing out a low-ball offer could mean throwing away your home if someone is willing to offer just $1,000 more than you. Not to mention, a ridiculously low offer could insult the seller to the point that they don’t even want to bother selling to you.
There are plenty of reasons to negotiate on price and you should consider things like home condition, location and more when you determine what you’re willing to pay. But that doesn’t mean that you should just make a low offer and hope that it will be the first step towards getting a low price. Instead, you need to plan carefully and determine whether a low offer is worth making. If it’s truly your dream home, you’re better off presenting your best offer first and then hoping for the best. It could help simplify the process tremendously.