Some might believe that their is a “perfect house” out there, that extreme low ball bids always work in a buyer’s market, that distressed properties will always go at well below market value, and so on. But Lew Sichelman does a good job of putting these myths to rest in his recent real estate myths article. And I’d like you to focus on this important point he makes:
Speaking of offers, many people believe they can make any bid they want, no matter how ridiculous, because it’s a buyer’s market. False. Even foreclosures and short sales are never priced at half their value “or anything even close to that type of fire-sale discount,” says Christina Rordam of Exit Real Estate Results in Longwood, Fla.
Now don’t be discouraged by this, because trust me, I have offered some pretty ridiculous prices in the past, and have been successful. Sellers, even if it is a bank of government owned property, aren’t going to offer it at half its value. So you just have to put enough offers out there in order to get someone to play ball, and sometimes, perhaps it is just luck when you land on a deal. The bottom line is, you need to be out there evaluating and making offers if you want to land on a deal.