Stop Low-Balling.
If you’re currently hunting for a home, you may have heard the advice to throw out low-ball offers in hopes of striking a great deal. In fact, you might have even tried this tactic yourself, thinking that submitting offers well below the asking price could result in a steal. Unfortunately, that strategy is no longer effective—and hasn't been for a while. The pandemic changed the housing market in ways that have rendered the low-ball offer tactic a waste of time. Low inventory, increased competition, and a seller’s market have made it nearly impossible to snag a bargain. So, if you’re still relying on this old-school method, here’s why it’s not working for you anymore.
The Low-Ball Offer Era: Pre-Pandemic Market Dynamics
Before the pandemic, the real estate market was far more balanced. Buyers had plenty of homes to choose from, and sellers were more willing to negotiate on price. In this environment, making a low-ball offer wasn’t out of the ordinary. Sellers, aware of having a larger pool of options, would often entertain offers below the asking price, especially if the home had been on the market for a while. Buyers could take their time, negotiate terms, and sometimes even score a better deal than expected.
The Pandemic Shifted the Housing Market
When the pandemic hit, everything changed. The sudden economic uncertainty led many people to reconsider their living situations. With remote work becoming a long-term option, many buyers sought more space, which created a spike in demand for homes, especially in suburban and rural areas. At the same time, low interest rates made buying a home more attractive. But while demand soared, the number of homes available for sale dropped significantly. Builders slowed down production, and many potential sellers held off on listing their properties, unsure of the market.
This dramatic shift in supply and demand created a housing market unlike any we’ve seen before. In essence, there was a shortage of homes available to meet the demand, leading to fierce competition. Buyers suddenly found themselves in bidding wars, with multiple offers coming in on a single property. Homes were selling for much more than asking prices, and low-ball offers simply didn’t stand a chance.
Low Inventory and Seller’s Market: The Death of the Low-Ball Strategy
In today’s market, low-ball offers are not just ineffective—they’re often dismissed outright. With low inventory and increased competition, sellers have more leverage than ever. They don’t have to accept low offers when there are plenty of higher bids to choose from. In fact, homes are selling at or above asking price, and it’s not unusual for a listing to receive multiple offers within days of hitting the market. As a buyer, trying to low-ball in this environment is a quick way to lose out on a property and waste valuable time.
The Key to Success: A Skilled Realtor
If you’re truly hoping to find a deal in this competitive market, you need more than just a low-ball strategy. You need the expertise of a skilled realtor who understands the market dynamics and can help you navigate it effectively. Realtors with deep knowledge of the current market conditions, as well as strong negotiation skills, can identify properties that may be underpriced or undervalued—homes that may not attract as much competition or be priced out of the market’s high-demand areas.
But even with a talented realtor, you must accept that finding a "deal" today is rare. Properties that are priced well in desirable areas tend to sell quickly and at full price, and while there may be the occasional opportunity for negotiation, they are few and far between. Your realtor will be key in helping you identify those rare opportunities.
Conclusion
In today’s housing market, low-ball offers no longer have the power they once did. The pandemic reshaped the market into a highly competitive seller’s arena where low inventory means homes often sell above asking price. If you’re serious about buying a home in this market, relying on low-ball offers will only waste your time and energy. Instead, partner with a skilled realtor who understands the nuances of today’s market. While scoring a great deal may be rare, a good realtor can help you make smart decisions and potentially find the best opportunities out there. You should hire StrausInTheHouse before it’s too late!
