should I submit a lowball offer in New York City does the strategy of
submitting lowball offers even work we're going to talk about this in
today's video I'm Nick at hauseit we can save you money if you're buying selling
or renting here in New York City learn how by visiting hauseit.com and please
check out our closing cost calculators for buyer and seller to give you a very
detailed estimate of what you will expect to pay on the day of the closing
so let's go ahead and get started
so let's get right to it is a lowball offer a good idea in New York City
well we feel strongly that a low ball offer strategy is highly ineffective
particularly in New York City but pretty much everywhere and the reason is that
you know from the outset you know you're typically dealing with individuals these
are people you know people people have vendettas people hold grudges people are
not necessarily always you know totally upstanding individuals and they might
dwell on things like potentially being insulted or you know feeling like their
pride has been hit so we see this all the time in New York so if you submit a
lowball offer to somebody they think you're trying to essentially make a
clown show of them they might get very offended and they'll pretty much
probably just Blacklist you they won't counter your offer and then if you
really want this property and you come back with a higher offer they might just
tell you to go take a walk in other words you can literally just get
permanently canceled by an individual seller if you start with an insulting
offer to begin with so when you're thinking about lowball we want to Define
lowball the offer you should submit should be the lowest conceivable number
that you think will engage the seller in other words a number that will get them
to start a dialogue that won't just be them telling you to take a walk or just
repeating their original asking price as their counter so you have to think a
little bit about the scenario there to come up with that number obviously
looking at comps how long has the listing been on the market do they have
any other offers how does your offer look in terms of consideration is it all
cash what kind of contingencies do you have all of these things should be
factored in when coming up with your offer
so do not submit mobile offers especially on properties that you really
really want you know if you've been searching for nine months and you've
only found two properties that you would consider
do not submit lowball offers on those properties because the risk is
exceedingly high that the seller is just gonna basically cancel you and not going
to want to work with you and you'll lose your dream home so you don't want that
now the only thing we would say here is if you're buying a new development like
a big building a lot of apartments in that case you can be a little bit more
aggressive on your offer but you still shouldn't be submitting lowball offers
now sponsors are a lot more disciplined you're dealing with legal entities a lot
of stakeholders you're dealing with the business as opposed to an individual and
many of them have a lot of Apartments to sell so they ultimately want to just try
to sell as many properties so you know if you come with an offer that's a
little bit unrealistic they'll probably still come back get on the phone with
you or your buyer's agent and kind of walk you through what the sponsor is
thinking and try to encourage you bring you up on the number by educating you as
to kind of what the market actually is but you don't have that same level of
discipline usually on the side of a private individual now let's just take a
step back and just ask for example what if I submit a lowball offer on 100
properties isn't it a numbers game isn't one person gonna get like tricked and
like basically accept my offer well that's you know not necessarily the case
especially if a property is listed like on the MLS if there's a listing agent
because you know it's very easy to assess for Value in New York City you
have a lot of properties transacting and especially Apartments can be often times
quite cookie cutter you have a lot of comps in the building so it's very easy
to assess fair value it's not really a mystery and if you have a listing agent
you know in the ear of the seller it's really really not going to go anywhere
you're just going to waste your time the only exception is you know perhaps if
you're sending letters to homeowners or something you know sure you can try to
fish you know in a predatory manner for somebody who doesn't know what the
market is and maybe try to trick them into selling but you know that's quite
predatory and that's really outside the scope of this particular video this is
more geared towards somebody who's you know looking at listed properties and
thinking about how to submit an offer so we hope you found this to be helpful the
key takeaway is the lowball offers are going to go nowhere in New York City
apart from you getting canceled and losing out on all of your dream homes so
do not submit lowball offers people in New York City are sharp and they have a
lot of Pride and if you insult them or you know think that you're taking the
Mickey out of them they will not sell you the property and they certainly will
not engage in a dialogue even if you're willing to sober up and come back with a
more reasonable number your credibility is eviscerated the moment you submit a
lowball offer here in New York City so please do let us know what you think and
below in the comments and we hope to see you on the next one