Are you hurting yourself by submitting low-ball offers on a Knoxville home for sale? A year ago 10% of REALTORS® were vocal about receiving low-ball offers on homes for sale. A low ball offer consists of an offer submitted by a potential home buyer for 25% or more below the list price. According to a National Association of REALTORS® survey of its members, that number has dropped drastically.
The survey taken in March of 4,500 agents and brokers returned the data that NO REALTORS® complained about low-ball offers. What is the reason for the drastic reduction in low-ball offers? The same thing we’ve talked about in recent articles, a lack of good and marketable inventory. The sudden drop in inventory of for-sale homes has led to fewer homes available to sell.
Home buyers thinking they still have an opportunity to steal a Knoxville home with a low-ball offer are finding that their offers are more often being rejected or being countered closer to the original asking price. Sellers, knowing they are priced correctly, are negotiating aggressively with low-ball offers which oftentimes has the final sale price landing close to the original asking price.
So what is the moral of this story? Throwing out low-ball offers at sellers may have been an effective approach between 2008 and early 2011. But now, in 2012’s Knoxville housing market it could be counterproductive if you truly want to buy.