How to make a low offer

Comparison shop. Once you’ve zeroed in on the property of your real-estate dreams, ask your agent to search the MLS (Multiple Listing Service, a real-estate database) for similar places in a six-block radius (you can search sites like dreamtown.com and redfin.com, but the info is somewhat outdated and incomplete). The search will pull all properties for sale, pending or sold in the past year, which will give you a good idea of the going rate in that area, according to Ryan Huyler, a Realtor at Coldwell Banker.

Look at time on the market. Another important tidbit the MLS search digs up: how long properties have been for sale. “Two years ago, 90 days or 100 days was an average market time,” Huyler explains, “but now it’s about 180 or 200.” So, what if the place you dig has been on the market for 300 days? Huyler says that could indicate it’s overpriced and the seller is desperate to get rid of it. In that case, underbid like a madman. Which brings us to:

Lowball, but be nice. Sure, buyers have it made in this crap economic climate, but there’s a way to be cool about underbidding, and there’s a way to be a jerk. How to be cool: Along with your (low) bid, present to the seller all the evidence you’ve collected that shows why your bid is more accurate. “The more ammunition a buyer can bring to the table—physical renovations that need to be made, [cheaper nearby properties] that justify a lower price, problems with the condo association—that show a rationale behind your offer, the better,” Huyler says. How to be a jerk: Unceremoniously throw out an outrageously low offer. But maybe it’s okay to be jerky these days? “The advantage is definitely in the buyers’ hands at this point,” Huyler acknowledges, “and they should take advantage of that.”

Contact Huyler at ryan.huyler@cbexchange.com or 773-529-9247.

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