Are low-ball offers advisable?

A low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price.

While any offer can be presented, a low-ball offer can sour a prospective sale and discourage the seller from negotiating at all. Unless the house is very overpriced, the offer will probably be rejected.

You should always do your homework about comparable prices in the neighborhood before making an offer. It also pays to know something about the seller's motivation. A lower price with a speedy escrow or closing, for example, may motivate a seller who must move, has another house under contract or must sell quickly for other reasons.