Are Low-Ball Offers Disappearing?

In local housing markets that are rebounding from the recession, the availability of housing inventory is shrinking while the competition for homes is rising. In an unreleased National Association of Realtors’ survey of real estate agents and brokers across the nation, a trend is emerging in these markets where sellers are now able to negotiate home prices closer to the listing price when a buyer provides a low-ball offer (typically 25% or lower than the listing price of the home). Kenneth R. Harney with the Los Angeles Times points out, “Rolling low-balls at sellers may have been an effective approach between 2008 and early 2011. But in 2012’s environment — at least in rebounding markets — it could be counterproductive if you truly want to buy.”

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