How much can i negotiate down (Lompoc, Monterey: condo, mortgage, lenders)

[clongirl]

I think you can absolutely "lowball" an offer. Don't act desperate or anything when you do so. The owners can either say "no way" that's "offensive", or they can choose to negotiate further. If they don't, then you can say to the real estate agent to give you a call in a year or so when that same house is still sitting on the market! Seller's in this current market need to realize that this is purely a business transaction and the tide has turned.

[RobE]

My understanding is that it is the homes at $800K and below that are taking the brunt of the sales drop off right now. So I would be real aggressive on a lowball offer and then tell them to make you a counter offer and see what you get. Buyers are being real demanding right now in what they will get for what they spend, so it won't be like you will be alone.

Now there are a lot of sellers who don't want to deal with reality and keep waiting for an offer in the range they want. But prices are only going to cave further as time wears on, so they are screwing themselves by doing this because the foreclosure picture will only worsen and it will put more downward pressure on the market. Tell the seller to get what you are offering now because they may not get that price next year or in the next two years as the market worsens.

On the high end homes, a lot of builders are stuck with unsold stock and are making aggressive price or feature moves just to get them off the inventory. Prices there aren't coming down as much as in the cheaper homes, but they will.

[Jedi5]

Originally Posted by RobE

On the high end homes, a lot of builders are stuck with unsold stock and are making aggressive price or feature moves just to get them off the inventory. Prices there aren't coming down as much as in the cheaper homes, but they will.

I am actually looking a new home built in 2007. Been on the market for over a month now in the $800 price range.

Anyone here think a $700 offer is to low?

[KARL_MARX]

same here the house im looking at was built in 04-05 in the Seaside Highlands...so i guess i will go ahead and make a offer

[Ultrarunner]

Originally Posted by RobE

Now there are a lot of sellers who don't want to deal with reality and keep waiting for an offer in the range they want. But prices are only going to cave further as time wears on, so they are screwing themselves by doing this because the foreclosure picture will only worsen and it will put more downward pressure on the market. Tell the seller to get what you are offering now because they may not get that price next year or in the next two years as the market worsens.

Why buy now... if prices will continue to drop over the next two years... because some people don't want to put their life on hold for two years!

[Angel Bear]

I feel like I need to read a book about buying California real estate LOL...I wonder if there are any out there?

[Roma]

Originally Posted by Angel Bear

I feel like I need to read a book about buying California real estate LOL...I wonder if there are any out there?

The only difference in California is the price!!! We moved to Texas over 2.5 years ago and have bought a few properties here and sold one. It's the same, nothing stood out as any different then in Calif. Don't let it scare you.

[Roma]

Originally Posted by california_is_superior

same here the house im looking at was built in 04-05 in the Seaside Highlands...so i guess i will go ahead and make a offer

Woohoo!! We are rooting for you! Come back and tell us what happens. Good Luck!!

[PureHapa]

No books can tell you what's going on. Each little neighborhood is different. In mine, things are still selling quickly - prices are holding steady. I'm talking about ocean-view homes in a good school-system area. Look at the stats for your desired neighborhood.

Inventory means something but it's not everything. Many folks put their homes on the market as a fishing expedition to see if they get bites at the listed price. Then pull them off when they don't get what they were fishing for. These people don't have to move. It's what Zillow calls "Make me move" fishers.

[ShastaLiving]

Consider the fact that sellers today are no longer overpricing their homes as they were a year ago. Given the slugish market, sellers have "gotten with it" and are being advised by their realtors to "price to sell". Sure they might leave some room for those low-ball offers but I wouldn't offer less than 5% of their asking price, that's if you really want them to take your offer seriously. However, I do agree with a previous post about checking the recent sales in that neighborhood, that'll be your best indicator as to how much you should offer.