I often using the expression “throwing mud against the wall to see what sticks.” The meaning is fairly simple, if you’re not sure what it would take to get something done, you throw something out there, a lowball price, or crazy idea, because you never know what’s going to stick. In the real estate world, buyers often throw mud against the wall the see what will stick. They will throw a low offer to a seller to see what sticks. Buyers do this because they think they can get a good deal, they think they know something the seller doesn’t, or any number of other reasons. Sometimes they are offering a very low price and are surprised when the seller doesn’t bend. Sometimes they are trying to see what they can get and are surprised at how low the seller will actually go.
It’s okay to throw mud against the wall, but you do need to be prepared for all the possible outcomes. Whether the seller responds high or low, or even the longer term ramifications. If you’re making a low offer on a seller’s personal residence, you could offend them. If in the long run you are able to put a transaction together, keep in mind you’re now working with a seller who you’ve offended. While we do our best to take emotion out of the transaction, sometimes that is difficult to do. The fact that the seller was offended at the beginning of the transaction, could have long term implications. If something needs to be renegotiated later on during the transaction, you may be dealing with a frustrated seller who already feels “beat up”. You do need to be very mindful about what you are doing, how you are doing it and how it’s being presented. A good real estate agent will be able to walk you through how to “throw mud against the wall” without offending any of the parties. Hire a good real estate agent with experience in negotiating transactions. Click here to request a call from a member of our team.