Yes, You Should Start Lowballing Offers (Buyers in Control!) (Rookie Reply)
Summary
This BiggerPockets article discusses the potential for lowball offers in a cooling housing market, offering advice on navigating such offers and also providing advice for new investors partnering to start an STR. Hosts can use this information to inform their real estate investing strategies and understand the risks associated with certain financing options.
Key Insights
- •The 2025 housing market is cooling, which may present opportunities to make lower offers on properties. Properties that have been on the market for an extended period are prime targets.
- •Buying a multifamily home with a friend where one unit is the primary residence and the other is a short-term rental has legal complexities with obtaining financing. A lender will want to know where the down payment is coming from, and gifts of money for the downpayment may be limited to family members.
Action Items
- ✓If lowballing, do a verbal offer first to save time on contracts. Have an agent who is comfortable with submitting lowball offers, as this is a common strategy in a buyer's market.Effort: lowImpact: medium
- ✓Shop around and talk to multiple lenders. Explain your financial situation to see what loan products may be available to you.Effort: lowImpact: medium
Tools & Resources
- →BiggerPockets Lender Finder: Go to biggerpockets.com/lender finder to get yourself connected with a lender, especially an investor friendly lender(biggerpockets.com/lender finder)
Common Mistakes
- ⚠Buying a primary residence under an LLC is not allowed.
- ⚠Avoid insulting the seller. This can cause your initial offer to be rejected based on the negative interactions with the seller.
More from Getting Started
This article from GreekReporter.com reports that Greece is climbing the European short-term rental rankings. While specific details on the rise are not provided in this short article, this suggests a growing opportunity for hosts. It implies increased demand in the Greek market, which presents a dynamic opportunity for STR investors.
Ennismore plans to expand its hotel presence in India, with its first hotel under the Morgans Originals brand, Roswyn, already soft-opened in Mumbai. Following the Mumbai debut, the company plans to open a Hoxton hotel in Bengaluru and is actively exploring further expansion opportunities, recognizing the market's readiness for a luxury lifestyle product.
The short-term rental market's growth is slowing, according to eKathimerini.com. This shift may affect occupancy rates and revenue for hosts. Understanding market trends is crucial for adapting pricing and marketing strategies, ensuring continued profitability.
Curated by Learn STR by GoStudioM