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It just surprised me that she was so absolute about it being 'wrong' for them and not wanting to show them the house. I guess the owners knew what they were doing when they bought it in the first place.
I remember stuff like that happening when I was looking for a home. Was it her or her office's listing or a listing of another company? When we were looking for our first home, realtors would show us stuff that was not what we asked for and brushed off our requests to see particular houses in favor of their own listings. When we were thinking about moving in 2005, we were lucky to find someone who actually listened and tried to work with us. It was a pleasant surprise.
It's a bit of an art, rather then a science. I have seen a lot of "lowball" offers recently by buyers who feel empowered by the media. Most of the time, they just succeed in insulting the owner, who then refuses to negotiate.
In general, you want to make an offer that indicates that you are a serious buyer, not one who is just out there tossing numbers around to see what sticks. Your goal is to generate a counter offer so that you can get the conversation going and eventually come to an agreement. I can tell you that of the homes that closed in the last 90 days in my area (Northwest Suffolk), the average sale price was 4.84% below the asking price.
Tom--
First off from all my readings you seem to be a straight shooter and I apprecitate your candid and honest posts.
In response to your previous post, I agree that buyers may be starting to feel the balance of power shift and it gives them some perceived muscle. I myself, while not looking to buy now, will be in the near future and I am happy to see that prices seem to be on the downturn. It appears that "maybe" the situation will be better for me when I do get serious and I will have an advantage. I just wanted to comment on your statement that a lowball offer may insult the owner and thus refuse to negotiate. While this is true, and if I was selling, would also probably be put off by someone's offer if it were way off base, as a buyer I get a little insulted myself when I see what people are offering and for the "asking price" they are offering it at. I know there are all sorts of reasons why people price their homes the way they do but as a buyer, just simple initial observations I have made of houses really makes me angry (insulted) that someone could actually think these homes have curb appeal to justify that price point. As I said before, there is always a reason for the pricing, be it location, school district or whatever, and a house is only worth what someone is willing to pay for it, persay,....
I will just make sure that my big financial decision is made clearly and objectively....I am sure I will be open to some sort of negotiation but when it comes time, I am not going to mind if I insult someone with a lower offer--I will just make sure I have a few houses on the back burner I am either looking at or in contact about. I might be wrong as I am no seasoned veteran house hunter, but the best house for the best price is what I am looking for as a buyer (who isn't) and the seller's feelings are not something I am going to seriously consider. Its a business decision. I always thought that you have to be prepared to walk away. There will always be another house from another seller just like there will always be another new car to purchase from another dealer and salesperson. Just my two cents....which sometimes make change. =) Thanks again for all your objective input.
It's a bit of an art, rather then a science. I have seen a lot of "lowball" offers recently by buyers who feel empowered by the media. Most of the time, they just succeed in insulting the owner, who then refuses to negotiate.
In general, you want to make an offer that indicates that you are a serious buyer, not one who is just out there tossing numbers around to see what sticks. Your goal is to generate a counter offer so that you can get the conversation going and eventually come to an agreement. I can tell you that of the homes that closed in the last 90 days in my area (Northwest Suffolk), the average sale price was 4.84% below the asking price.
Can vouch for that....
4br 2br 1800 sq ft home built in 1990 in Sound Beach. Move-in condition.
Asking 289K
Bid 270K
Got in at 275K
Right around 5% difference. This house seemed to be priced well....had three previous contracts fail due to failed buyer mortgages.
4br 2br 1800 sq ft home built in 1990 in Sound Beach. Move-in condition.
Asking 289K
Bid 270K
Got in at 275K
Right around 5% difference. This house seemed to be priced well....had three previous contracts fail due to failed buyer mortgages.
I think the original asking price is key. A house for 289 at 1800 sq ft. is not an unreasonable start for the island. As Tom Moser has mentioned, the trouble starts when the sellers go out too aggressively...you end up chasing the right price range for months after a period of zero interest. It can also result in those "insulting" offers that people throw out for something they feel is well overpriced. Best of luck to you in your new home.
Some of this is the fault of the sellers and some is the fault of their agents. Most seller have what I call the "Best Home on the Block Syndrome". In other words, they all believe that for some special reason, their home is worth more then all the others (when they built it they used golden nails!)
This is compounded by real estate agents who will tell the seller whatever they want to hear in order to get the listing. This is actually a dumb way to do business, as it does not serve anyone well: the seller, the buyer, or the agent. I have walked away from several listings because the seller would not price realistically. Then I see someone else list them and the home sits.
I guess for house hunters the moral is that you should not expect to get the seller to come way down if you think the house is overpriced. To that seller, it is priced just right. Instead of chasing those homes, where there is little chance your offer will be accepted, look for the homes that are priced right to begin with. Those sellers are ready to sell.
Thanks for your reply Tom (and others).
I see that the market is obviously moved by location and demand of course. In my case, the asking price was $599 (Glen Cove) and my offer was just about 8% less than that - not insulting in any way in my opinion, BUT, when the guy doesn't even counter ... that's rediculous. According to the listing agent, he (the homeowner) had multiple offers on the table "close" to listing price (needless to say I got a call back after another "open house" to see if I was still interested). I even increased my offer by another 10K and still didn't get a counter. This property has been on the market since August and has another open house this week end.
The frustrating part is that this is a house that my wife and I really love. It has everything we need, but for some reason, this greedy "house flipper" thinks that he's gonna retire off of this sale. Who get's listing price nowadays??!!
I'm a homeowner in Queens and I know for a fact that I can't get what I could of gotten two years ago.
The funny thing is that after all is said and done, this <expletive> is probably gonna make mid 500's by the time he sells (less property taxes, and other expenses).
Let me see if I've got this right. It's listed at 599. Your offer is about 560 and he won't counter? He sounds pretty foolish. If you would like to PM me with the address, I may be able to look it up and provide you with a little more insight.
It sounds like the agent is trying to keep you in play in case a better offer does not come along. One tactic that you might try, since the agent came back to you is call him up and tell him that you have found another house that you are interested in, but you really like his better, and you wanted to give him another opportunity to negotiate a sale. Maybe that will get him going. No agent likes to lose a sale.
first off, to comment on the realtor making a comment that the house is in close vacinity to a not so great area... i personally would want my agent to tell me the truth about the neighborhood. i'm sure many people out there, like myself, are unfamiliar with the areas we're looking at... and honestly i appreciate an honest real estate agent who is telling me the truth and not whatever it takes for me to buy. as for what to offer, i think about 10% below asking price is fair. the seller has three options, they could either say yes / no / or make a counter offer. it's ridiculous that they would be so insulted that they decide not to sell the house... it's a buyer's market right now and it's foolish for the seller to reject an offer just because it's lower than what they want without countering.
check out this site for appraisals for houses in the area and the one you are interested in. we're looking right now and found it to be quite useful. it's not 100% accurate, but it'll give you an idea. i think there's another similar site, but i don't remember the name of it, if you want, i could get it for you. just send me a dm! Zillow - Real Estate Valuations, Homes for Sale, Free Real Estate Information
first off, to comment on the realtor making a comment that the house is in close vacinity to a not so great area... i personally would want my agent to tell me the truth about the neighborhood. i'm sure many people out there, like myself, are unfamiliar with the areas we're looking at... and honestly i appreciate an honest real estate agent who is telling me the truth and not whatever it takes for me to buy. as for what to offer, i think about 10% below asking price is fair. the seller has three options, they could either say yes / no / or make a counter offer. it's ridiculous that they would be so insulted that they decide not to sell the house... it's a buyer's market right now and it's foolish for the seller to reject an offer just because it's lower than what they want without countering.
check out this site for appraisals for houses in the area and the one you are interested in. we're looking right now and found it to be quite useful. it's not 100% accurate, but it'll give you an idea. i think there's another similar site, but i don't remember the name of it, if you want, i could get it for you. just send me a dm! Zillow - Real Estate Valuations, Homes for Sale, Free Real Estate Information
Zillow.com is wildly inaccurate. I think in a few years it will get better as more data is collected, but right now I find that it is usually way way off. It is kind of fun, though.
i know, i am so hooked. there's another site that's similar and a little more accurate. i will post it once i find out the name of it.
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Starting price is the key
