Everybody likes a deal…

I, like everyone else, enjoy getting a deal.  Along these lines, given the current state of the real estate market, deal-seeking prospective buyers may be tempted to offer a seller an extremely low-ball offer.  However, as this Madison.com Property Trax article indicates, providing such an offer may actually backfire and prevent a buyer from acquiring the property.

The two main reasons cited are that a seller either (1) cannot (likely for financial reasons relating to the amount due on their mortgage), or (2) doesn’t need to accept such an offer.   In fact, a prospective buyer submitting a low-ball offer also risks offending a seller who, assuming they are in the second category, may not believe that the prospective buyer is serious about the transaction and then refuse to negotiate with the buyer at all.  Obviously, if we are dealing with a residential property, this can mean missing out on a buyer’s dream home.

As stated in the article, the important considerations when submitting a low-ball offer are justifying your number.  For a low-ball offer to be taken seriously, a seller must feel comfortable that the buyer is serious and has a basis for his or her number.  This is where having an experienced real estate attorney on your side is truly valuable.

Attorneys at Eustice, Laffey, Sebranek & Auby, S.C. have over 75 years of combined experience and are on the cutting edge of commercial and residential real estate law.  To contact one of our residential real estate attorneys, please call our office at (608) 837-7386, or send our law firm an email to schedule an initial consultation.

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