The Danger of Lowball Offers for Apartments in NYC
While it may be tempting to try out a lowball offer for an apartment in NYC, using this tactic could really backfire on you. Here’s why you need to think twice about it.
You Might Waste Time
You might think that it’s okay to submit a lowball offer because you know that you’re willing to go higher. But the further apart you and a seller are in price, the longer it might take to get a deal done.
And this extra time may give another buyer time to swoop in and take the deal from you. Because remember – until you have a signed contract, you don’t actually have a deal. So you may not even get an opportunity to raise your price! Speaking of which…
You Might Make Other Buyers Look Good
If another buyer comes in with a better offer, the seller might be especially excited to go with them rather than you if their offer is much closer to the asking price.
In fact, coming in too low may convince the seller that you’re not a reasonable or serious buyer. So they may decide it’s not even worth it to go back to you with any kind of counter offer. You might just get ignored entirely in favor of other buyers.
You Might Make the Seller Angry
You might see this point and think “So what? Who cares if the seller is mad?”
You should care.
Insulting the seller at the beginning of the process can set a bad tone for the rest of the negotiations. It makes it far less likely that the two sides will come to a deal, and that’s ultimately what everyone actually wants.
If you’re ambivalent about the home, then maybe you can afford not to care. But if it’s a home you really want, you have to take this into consideration. And you need to help the seller see that you’re sincere about making a deal that they can jive with.
You Could Be Setting Yourself Up for a “Tougher” Deal Down the Line
Contract negotiations are just the beginning of the deal. There are a number of hurdles to clear before you can get to the closing table.
This means there’s plenty of opportunities for things to go wrong. And they often will and in ways you won’t expect.
To keep things on track, the buyer’s and the seller’s teams need to work together. If there’s bad will from the start, the seller might be less inclined to help you down the road when you need it. And this is especially likely to be the case if it’s not something they need to do in order to close.
There’s a Better Way
Rather than putting in a lowball offer on an NYC apartment, use a more sensible strategy! Be sure to understand the current market by staying in the loop about key data (check out the Corcoran Report). And of course, it certainly helps to have a knowledgeable agent on your side. But fortunately, you don’t have to look that far – I’m right here! So contact me!