How to Convince Home Sellers to Accept a Lower Offer

Shopping for houses, get lower offer accepted

As a real estate investor, you are trying to buy houses for the lowest possible price. This gives you more room for return on investment (ROI) once the property is renovated and ready for sale or rent. The big challenge in front of you is convincing home sellers to accept a lower offer. Naturally, they want and expect to get top dollar for their homes. This can make negotiations difficult and prevent deals from getting done.

So, how do you get your lower purchase offers accepted? Here are a few tips from PropertyLark:

Be First on the Scene

However you find out about the house and the seller’s motivation to sell, you want to act quickly. There is always plenty of competition for good properties, so you should be ready to act fast and make your offer before others start to pounce. Ideally, you want to catch the seller before they put the house on the open market. Getting a private deal done is the best way to buy for a lower price.

Understand Their Motivation

It helps to get to know a little about the seller and their specific situation. They may have strong financial motivation to sell quickly or they may be moving for other reasons. Understanding their reasons for selling can help you build trust and prepare an offer that will be most appealing to them.

Explain the Process

If you are buying houses with cash, you are at a significant advantage. Most cash buyers can negotiate a lower price simply by explaining the process. Show them how long closing will take in a fast cash deal compared to going through all the normal steps of selling a home through a Realtor® on the open market. Time is a major motivation for many home sellers, so it can be a significant bargaining chip for you if you are helping to speed up and simplify the process for them.

Prepare to Buy As-Is

Most investors are planning renovations anyway. You want to avoid talking about how you plan to gut someone’s home. That may bring up some emotional baggage. You should be prepared to make your offer on the property in as-is condition. This will help speed up the process and take a lot of burden off the seller’s shoulders. They won’t have to worry about making repairs or cleaning the house. This saves them time and money. Keep any home inspections simple and make the process easy. On this note, be prepared to cover most—if not all—of the closing costs and any other fees associated with the transaction.

Keep it Private

Many home sellers—especially those in tough financial situations or motivated to sell for other reasons like divorce—are opting for a cash home sale because they want to be somewhat discreet about it. They aren’t looking to draw a lot of attention. They want to keep the sale private. Respect their privacy and treat the whole process with discretion.

Make a Fair Offer

Lastly, put a lot of thought into any cash offer you are making. Don’t lowball the seller just to lowball them. Run careful property analytics and figure out your acceptable price range. Study the local market and present them with a fair offer. They will be willing to accept less for a fast cash sale, but an offer that’s too low may scare them away. You want to present an offer that is compelling enough to keep them from shopping around or considering other options. Make it enticing, but still within your budget.

These are just a few tips for real estate investors and cash home buyers. Another tip is to join the PropertyLark home buyer’s network. We can give you exclusive access to off-market deals and other investment tools. We have motivated sellers contacting us every day, so let us be your best house buying resource.