When and how do I make a lower offer to buy?

When should I make a lower offer?

It is not always appropriate to make an offer lower than the indicated selling price. It depends on a variety of factors:

1. The state of the real estate market: In a market where supply exceeds demand (buyer's market), owners are generally more willing to negotiate the price. Sellers may face increased competition, causing them to be more open to lower offers. On the other hand, in a market where demand exceeds supply (seller's market), owners tend to remain firm on their prices. It is therefore important to properly assess the state of the real estate market in order to succeed in your negotiation.
2. The condition of the apartment: If the apartment requires major renovation work, this may justify a lower purchase offer. The costs associated with repairs and renovations can be taken into account to offer a lower price. It is also essential to consider the attractiveness of the apartment for other potential buyers. If the home has major flaws or structural problems, this may be a justification for making a lower offer.
3. The length of time on the market: An apartment that has been on the market for a long time may indicate an overestimate of the price by the seller. In this case, a lower offer could be considered. Prolonged time on the market is one of the most telling signs of an overvaluation of an apartment. Owners may become more open to lower offers after an extended period of time with no success in selling.

How do I make a lower offer?

When you decide to make a lower purchase offer after viewing the home, here are some tips to follow:

1. Show respect: Making a lower offer should not be seen as an offense by the seller. Therefore, it is essential to be respectful and professional throughout the process. Communicate in a courteous manner and be aware that the seller may have a strong emotional attachment to their property.
2. Justify your offer: A lower purchase offer will be more easily accepted if it is justified. For example, you can mention the renovations that are needed or provide an evaluation of the local market to explain your offer. Provide concrete facts and figures to support your proposal. This may include renovation quotes, comparisons to similar properties in the area, or recent sales price data.
3. Be ready to bargain: An offer to purchase is often the starting point for negotiations. It is therefore important to remain open to discussion and to show flexibility. Leave room for manoeuvre in your initial offer so you can negotiate with the seller. Be ready to compromise and find common ground that both parties are happy with.
4. Highlight your financial strength: If you can demonstrate that you are a serious buyer with solid financial capacity, this can encourage the seller to take your offer more seriously. Ask your banker or broker for a comfort letter and/or the financing plan for your future acquisition. By providing tangible evidence of your ability to secure financing, you can strengthen your negotiating position.
5. Involve a real estate professional: It is often recommended to surround yourself with real estate professionals to support you in this process. A real estate agent or real estate hunter can provide you with expert advice, local market information, and negotiation expertise. They can help you make an estimate of the apartment and formulate an appropriate offer. They can help you get a good deal!
6. Evaluate the seller's motivations: Understanding the seller's motivations can help you determine if it's possible to make a lower offer. Sometimes salespeople have unique circumstances, such as a need to sell quickly or a change in personal circumstances, which can make them more likely to accept a lower offer. If you discover that the seller is in a hurry or has a specific motivation, this can work in your favor during the negotiation.
7. Prepare a cover letter: When submitting your lower purchase offer, include a letter explaining your interest in the property and the reasons for your lower offer. Use a respectful tone and express appreciation for the house while highlighting the reasons for your price proposal. A letter with a clear, well-written message can help create an emotional connection with the seller and increase your chances of accepting the offer.
8. Be flexible on the other terms of the offer: If you want to make a lower offer, you can compensate for this by being flexible on other aspects of the offer. For example, you might be ready to reduce your response time and agree to a faster closing date, switch to the signature or to assume certain repair costs or to waive specific requests. This shows the seller that you are ready to find common ground and that you are a serious buyer.
9. Emotionally prepare for a refusal: When making a lower offer to buy, it's important to be ready to be turned down. Sellers may be emotionally attached to their property and may reject a lower offer without even considering it seriously. Remember that negotiation is a process, and if your first offer is rejected, you may want to consider making a counter offer or continuing to look for other opportunities. Do not hesitate to sign a exclusive mandate with a real estate agent, he will be your guide and can find another similar listing. If you persevere, you are likely to find a homeowner who will accept your offer.

By following these tips, you'll be better prepared to make a lower offer in a strategic and respectful manner. Keep in mind that the real estate negotiation is a complex process and it is important to be patient and persistent. Remember that other expenses must be taken into account in your total budget, such as notary fees, the amount of interest on the bank loan, etc.

For more real estate tips, check out the other blog posts from Parlez-moi de Paris, the agency of real estate hunters.

Learn more:

Evolution of real estate rates : what you need to understand
Mandatory real estate hunter : what is it?
Apartment in Île-de-France : 5 tips before buying