In a competitive real estate market like Oahu, it can be tempting to submit a lowball offer in hopes of getting a deal. But before you go significantly below asking price, there are important factors to consider that could make or break your home buying experience.

A lowball offer is generally considered anything more than ten percent below the listing price, though this varies depending on market conditions and the specific property. In Oahu's market, where inventory is limited and demand remains strong, a lowball offer can sometimes backfire.

Before submitting a low offer, research the comparable sales in the area. If recent sales support a lower price, your offer becomes more defensible. Understanding the seller's motivation is also critical. A seller who needs to move quickly may be more receptive to a lower offer than one who is testing the market.

Consider the condition of the property. If a home needs significant repairs or updates, a lower offer may be justified and the seller may be expecting it. Get estimates for any needed work so you can support your offer with actual numbers.

Be prepared for the seller to reject your offer outright, counter with their own price, or simply not respond. In Hawaii's market, sellers often have multiple offers to choose from, so an unreasonably low offer may cause them to dismiss you as a serious buyer.

If you decide to submit a lower offer, make it as strong as possible in other ways. Offer favorable terms like a flexible closing date, fewer contingencies if you are comfortable doing so, or proof of strong financing. A cash offer or large earnest money deposit can also make a lower price more palatable to a seller.

Work with your agent to craft a strategy that balances your budget goals with realistic market expectations. Kristy and Austin Home Group has extensive experience helping buyers find the right approach for every situation in the Oahu market.