February 6, 2008 Mara Bushari

As a real estate professional watching the Suze Orman show the other night, I was disturbed to hear Suze encouraging buyers to put in low-ball offers due to the market. Now, I usually agree with most of what Suze has to say, but real estate is local and she often seems to forget that.

As a Boston real estate agent living everyday on the front lines of Boston’s real estate market, my perspective is somewhat different. First off, the Boston market has seen a slowdown, but even though fewer properties are selling, the median price continues to rise in Boston’s prime neighborhoods. Sellers also understand that if they really want to sell, they will need to price their home competitively and make sure it “shows” well. By offering a low-ball of 10-20 percent on a correctly priced home, the buyer is doing a disservice to his or herself and is most likely to get a flat “NO”. The buyer will need to either wait a good three months or come back with a higher price…a negative negotiating position. You don’t want to move twice while the other party hasn’t budged; it shows your cards.

I have seen buyer after buyer lose properties this way in the past few months. I have seen buyers shocked as their bid is not only rejected, but another competing bid is accepted within days. In order to understand if a low-ball offer is a good idea, speak with your buyer’s agent. If he or she is an Accredited Buyer’s Representative, the agent should be able to tell you if the home is competitively priced for the value, or if it is a good idea to low-ball.

Mara Bushari

Mara is a creative thinker and strategic marketer. She graduated Summa Cum Laude from Boston University’s College of Communication and worked in international finance before joining The Bushari Team. Mara strives to exceed expectations. As Client Relations Specialist, she is a key facilitator in all team transactions, making the buying or selling process as stress-free as possible for the client. Mara learned many of her extraordinary organizational and problem-solving skills during her service in the Israeli Defense Forces, where she earned the “President’s Award” for exceptional service. In the military, Mara solidified her abilities to achieve top results in high pressure and time sensitive situations. In her spare time, Mara enjoys skiing, photography and writing.

Comments (2)

  1. Aaron Fisher

    Good point. I lost a property and I’m blaming my buyer’s agent for not giving me the right advice. I’m still looking…

  2. anon

    As long as you don’t fall in love with a single property, what’s the problem? So what if you have to wait three months for the sellers to come around or if you have to low ball on a few more places? It will eventually work. That seems worth 10-20% to me.

Leave a Reply

Your email address will not be published. Required fields are marked *