I decided to answer this question today, since it is a valid concern many buyers have today.
Q: Can’t I just try the low-ball offer to see what the seller says?
A: Before you make a low-ball offer, ask yourself how you would respond to the offer if you were the seller. If your offer comes in too low, a seller may be insulted and just reject it outright. This will weaken your negotiating position if you really want that house, if the seller decides to push it and see how high you are willing to go on the price.
Making an offer at fair market value, with price and terms that are fair to both you and the seller, will make for a smoother transaction. You’ll be happy because you get the house you want at a price you’re willing to pay. And the seller will be happy because they don’t feel like they’re giving their home away.
That is a win-win transaction, and those are the best kind.