Why You Shouldn't Make a Lowball Offer right now

If you’re a serious buyer then don’t learn the hard way and have your Vegas dream home slip through your fingers. One of my most recent listings received multiple offers within days of going on the market. Two of these were cash buyers, both of which were excited about the property. One had family a few doors down and felt it was the perfect opportunity for them after months of searching. The only problem was that they offered $15,000 below asking price, while the other buyer presented a full price bid and could close immediately.

Because of this they were taken out of the consideration and my client was ready to accept the other (full priced) offer. I called their agent the next day and explained we had high interest in the home and that they should submit something stronger ASAP. Our hope was that they would offer full price or a little more.

That evening I opened my email and saw a new offer which was $7,000 less than asking price. Their agent reiterated how important the home was to his clients and they looked forward to being so close to their granddaughter.

Their offer was subsequently declined.

I had wondered what their agent was advising them as I’ve certainly been on the other side of the transaction myself. Clients who, despite a seller's market, insist on making weak offers almost always lose the house. Below are a few reasons you should not make a lowball offer on homes for sale in Las Vegas.

How much do you want the home? 

Over the 24 months, neighborhoods such as Seven Hills, Anthem, and Green Valley Ranch have experienced shrinking inventory and rapid appreciation. An offer placed well below market value would probably not even be considered and may possibly insult the home seller.

I’ve received lowball offers for real estate and simply declined them. I understood their line of thinking and it didn't bother me. I also would have been receptive to another (higher) offer, or possibly presented a counter offer. Not all sellers are going to react in such a way however. Some may become angry and shut down altogether. No counter offer, no answer, nothing. Obviously if you’re sincerely interested in a particular home, you want to keep dialogue open with the seller. You’re not going to do that by making them upset.

For instance, if you’ve just found your dream home in Summerlin, then don’t go much lower than market price (To be clear, market price is not the same as list price.) In this climate, chances are that another buyer also feels the same way you do. Make your first offer close to your highest and get the seller’s attention.

Bid low and there is a high chance you’ll lose the home altogether.

Especially if it’s new on the market with high buyer activity (showings.) If you love the home and it’s a healthy market such as this one, don’t make the mistake of low-balling the owner.

If the home for sale is already priced a bit under market then don’t go any lower.

Let’s assume the house is in good condition and simply priced to sell. Chances are it’s going to move briskly and for full price. A smart buyer will recognize this deal and jump on it, not try to cut more off the price. You’ll also have increased competition because of the list price. 

If it’s an appealing neighborhood, then demand will naturally be higher.

Homes in high demand communities such as Henderson, with top rated schools and various amenities don’t last long. In fact these areas are often more resilient to market downturns. Also, inventory in these micro-markets are often lower than the cities they are found in. If you place a high value on a particular neighborhood, then don’t start with a weak offer.

Finally

Negotiating is an art and you've got to have a good starting point to keep things moving along. Unless you’re an investor, or simply like the lottery aspect of unrealistic offers, then dump the idea of “stealing” a house in this market.