43 Urban Village Live + Work New Construction written by: Frank Vigliotti, Realtor®, Global Sales…
The lowball index is not a resource that is checked by economists on a regular basis but does help to provide a good idea of the changes in local South Florida real estate markets that include major cities like Fort Lauderdale, Miami Beach, Boca Raton, Hillsboro Shores, Wilton Manors and Plantation. Analysts from the National Association of Realtors provide research that notes one of ten home sellers who participate in their monthly evaluation have received ridiculously low offers on their listed single family homes and condominiums. In the most recent survey from the National Association of Realtors based on data from over 4,000 real estate agents and brokers in the United States, the amount of lowball offers had greatly decreased. With the decrease in housing inventory and less houses for sale on the market, many sellers are receiving multiple offers closer to or above their asking prices.
What is considered a lowball offer? An offer that is classified as a lowball offer is normally when a buyer submits a proposal that is 25% less than the seller’s asking price. Lowball offers are typically plentiful in areas with a lot of properties for sale, when asking prices are higher than average properties in the area and when home values are depreciated or unclear. In cases like this buyers have the misconception that they may get a steal. The number of Fort Lauderdale single family homes for example has dropped and the realtors of the Henri Frank Group are seeing less and less lowball offers, according to Henri Vezie, Co-Founder and Realtor of the Group at Remax Preferred.
Reports validate that making these types of offers is not the best idea when searching for homes this season. In local real estate markets of Broward County Florida, Palm Beach County Florida and Miami-Dade County in which there are fewer homes to sell and more competition, lowballing may get your offer denied or countered with an offer near the original list price.
Control in the market has shifted back into the hands of sellers as the increases in demand show improvement to recession stricken markets. The low offers are being ignored since multiple offers have become more common than ever.
The amount of these lowball offers continue to decrease based on more practical listing prices. Sellers through out Fort Lauderdale, Miami Beach, Boca Raton, Plantation, Wilton Manors, Plantation, Coral Springs, Weston and other South Florida communities have learned from their mistakes and the mistakes of others during the recession and have a better understanding of the real estate market. When sellers receive low offers, they are no longer offended and won’t hesitate to submit a counter offer. Sellers have adapted to more aggressive tactics and have been successful at receiving offers closer to their asking prices. An example of this is explained by Realtor Frank Vigliotti, PA, Certified Distressed Proeprty Expert, Co Founder of the Henri Frank Group, a Real Estate agent with Remax Preferred located in South Florida who recently witnessed a buyer attempt to offer $150k for a home with an asking price of $250k. After countless negotiations, the person buying this real estate ended up paying $230K.
In other national locations such as Northern Virginia suburbs, reasonable priced properties with great locations often sell fast just as we are experiencing in many areas throughout South Florida. As long as the property is listed at or close to the market value, determined by the Comparative Market Analysis the Henri Frank Group at Remax Preferred provides free to its clients, many homes have even received multiple offers in as quick as 48 hours from listing the property. Many sellers are advising their realtors to ignore these low offers due to their certainty of receiving additional offers closer to their asking prices.
Some realtors in the United States report that low ball offers can still be effective. In communities with less competitive rates and areas that are still affected by downfall in the economy. Lowball offers have been deemed ineffective in communities that not affected by these factors Sellers have been encouraged to stick with their initial offers more than ever and have continued to receive contracts closer to their asking prices.
The lowball strategy has been effective in the past and no one can blame a buyer for attempting to receive the best deal possible but in rebounding local real estate markets, this may be the last thing you want to do. Although there is a chance in you can save money on the property there is an even bigger chance that you will lose your dream home. It is a risk that buyers will have to examine perhaps property by property.
The Henri Frank Group at Remax Preferred is located at 2810 E Oakland Park Boulevard, Fort Lauderdale, Florida. Also satellite offices at 2166 Wilton Drive in Wilton Manors, Florida and at 2 University Drive in Plantation, Florida and on Ocean Drive at the Hillsboro Inlet to the Hillsboro Mile in Hillsboro Shores, Florida. Call 954-604-9999 or go to their website at https://henrifrank.com or find the Henri Frank Group on FACEBOOK, Twitter, Pinterest and other social media.