Lowballing a home offer can be considered mean, ruthless, and cutthroat. It can also be considered smart, effective, and cheap. The last ten years has seen huge home price gains. The last one year has seen a drop in those gains. As a result, some sellers may be willing to take a little less for their home than they could have got just a few years back. Many California markets such as San Diego, San Jose, and Sacramento have seen modest price drops. Here is what you need to do to take advantage.

Learn the Motive for Selling

Some sellers must urgently get rid of their home. Employment, school, financial hardship are all reasons for unloading real estate. These sellers are the easiest to lowball. They are under pressure to close a deal.

Other sellers are downsizing their lifestyle. Reasons from children moving out to approaching retirement cause a downsize. These homeowners likely have lived in their home for years and have seen huge appreciation gains. It is unlikely they will stop a deal because they aren't getting top dollar for their home. Bring to attention the decrease in home prices the last few months.

The other type of seller is the recent homebuyer. This person purchased a home the last year or two and is reluctant to take a loss. This person is the hardest to lowball.

Be Careful Not to Insult

Many buyers attempting to lowball a bid can come off insulting and ridiculous. A home carries a lot of emotional attachment for some people. An unbelievably low offer can seem disrespectful. It can also make a seller give the cold shoulder to any negotiations.

Quick tip: Have a maximum bid price and stick to it. Anything below is a gift.

For more information visit www.bankrate.com or www.realestatejurnal.com.