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Old 08-01-2008, 05:27 PM
 
132 posts, read 357,875 times
Reputation: 35

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When you try to make a really low offer to a house, ever notice that your realtor will "advise" you that you are offering too low and show you the list price and sold price of houses, showing you that there is only a few percentage points between list and sold price.

What I noticed is a common practice among the listing agent realtors, where after a low offer is accepted by the seller, the listing agent will drop the list price of the house to somewhere between the list and accepted price.

According to the realtor, this is to see if anyone else can outbid the offer during attorney review. I don't think this is the real reason. I think this is to show future potential buyers that you shouldn't offer too low a price difference from the list price.

But a more important reason is that it also makes the listing agent look good as a seller's agent, because it shows they can give the seller close to what they're asking, so you should list with them. Nice ruse right?

So the next time a realtor shows you the difference between listing price and sold price, don't believe it. Try to look for the Original listing price, or if possible, try to find out if it's a relisted property.

Last edited by FUALL; 08-01-2008 at 05:28 PM.. Reason: font
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Old 08-01-2008, 09:46 PM
 
526 posts, read 1,222,406 times
Reputation: 74
Quote:
Originally Posted by FUALL View Post
When you try to make a really low offer to a house, ever notice that your realtor will "advise" you that you are offering too low and show you the list price and sold price of houses, showing you that there is only a few percentage points between list and sold price.

What I noticed is a common practice among the listing agent Realtors, where after a low offer is accepted by the seller, the listing agent will drop the list price of the house to somewhere between the list and accepted price.

According to the realtor, this is to see if anyone else can outbid the offer during attorney review. I don't think this is the real reason. I think this is to show future potential buyers that you shouldn't offer too low a price difference from the list price.

But a more important reason is that it also makes the listing agent look good as a seller's agent, because it shows they can give the seller close to what they're asking, so you should list with them. Nice ruse right?

So the next time a realtor shows you the difference between listing price and sold price, don't believe it. Try to look for the Original listing price, or if possible, try to find out if it's a relisted property.
Hi FUALL,

I am curious, just where exactly did you notice this? I have been a full time REALTOR for 5 years now in 2 states (over 80 transactions) and have never seen this practice and never done this before!!

The reason most REALTORS try to get their buyers not to lowball on offers, is because the majority of the time if you lowball, the seller shuts down and will not negotiate, total waist of time and if you want the house you should be prepared to pay something close to fair value. Just like in the stock market (Bulls make money, Bears make money, Pigs get slaughtered) except in this case they just waist their time and their REALTORS time.

The problem with buyers who insist on lowballing for the most part is that they will not look at reality, they think what ever the house is priced at now price reductions or not, they should offer 20% less. I have had 2 listings in the past 6 months which received lowball offers, neither of the sellers would even counter the lowball, and both houses sold for a significantly higher price within a matter of weeks.

Moderator cut: no sigs

Last edited by tahiti; 08-04-2008 at 08:22 AM..
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Old 08-02-2008, 06:24 AM
 
Location: Martinsville, NJ
604 posts, read 2,585,695 times
Reputation: 267
Quote:
Originally Posted by JamesBoyer View Post



The problem with buyers who insist on lowballing for the most part is that they will not look at reality, they think what ever the house is priced at now price reductions or not, they should offer 20% less. I have had 2 listings in the past 6 months which received lowball offers, neither of the sellers would even counter the lowball, and both houses sold for a significantly higher price within a matter of weeks.
Corrrect me if I am wrong but don't most realtors try to list the homes at a realistic price so as to not waste their time by showing homes that are way overpriced? Just how arrogant do you have to be to offer 20% less than asking price?
Perhaps some buyers are looking in neighborhoods they can't afford hoping they can lowball a desperate seller. Might work in the less desirable neighborhoods but not in great locations.

E

Last edited by tahiti; 08-04-2008 at 08:22 AM..
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Old 08-02-2008, 08:00 AM
 
Location: GA
2,736 posts, read 9,339,539 times
Reputation: 1075
Quote:
Originally Posted by emanon View Post
Corrrect me if I am wrong but don't most realtors try to list the homes at a realistic price so as to not waste their time by showing homes that are way overpriced? Just how arrogant do you have to be to offer 20% less than asking price?
Perhaps some buyers are looking in neighborhoods they can't afford hoping they can lowball a desperate seller. Might work in the less desirable neighborhoods but not in great locations.

E
I received an offer that was 27% under list. It's just amazing. And yes, we're priced just below comps.
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Old 08-02-2008, 12:19 PM
 
1,462 posts, read 4,017,061 times
Reputation: 1002
Quote:
Originally Posted by brookdaleresident View Post
I received an offer that was 27% under list. It's just amazing. And yes, we're priced just below comps.

Comps from when, is the question? The comps from 2006-2007 are worthless. Home values have dropped like a rock.
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Old 08-02-2008, 12:49 PM
 
130 posts, read 442,943 times
Reputation: 50
Quote:
Originally Posted by FUALL View Post
When you try to make a really low offer to a house, ever notice that your realtor will "advise" you that you are offering too low and show you the list price and sold price of houses, showing you that there is only a few percentage points between list and sold price.

What I noticed is a common practice among the listing agent realtors, where after a low offer is accepted by the seller, the listing agent will drop the list price of the house to somewhere between the list and accepted price.

According to the realtor, this is to see if anyone else can outbid the offer during attorney review. I don't think this is the real reason. I think this is to show future potential buyers that you shouldn't offer too low a price difference from the list price.

But a more important reason is that it also makes the listing agent look good as a seller's agent, because it shows they can give the seller close to what they're asking, so you should list with them. Nice ruse right?

So the next time a realtor shows you the difference between listing price and sold price, don't believe it. Try to look for the Original listing price, or if possible, try to find out if it's a relisted property.
this same thing happpened when i accepted the offer for 20K less than the list price. Now the list price of the house is reduced by 10K. But I didn't sign the contract for some personal reasons. Now I know the reason why they do this. thanks for the tip.
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Old 08-02-2008, 12:51 PM
 
130 posts, read 442,943 times
Reputation: 50
so in a way, reduced listing price also means someone signed the contract on that house :-)
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Old 08-02-2008, 01:52 PM
 
Location: Pennsylvania & New Jersey
1,476 posts, read 3,348,351 times
Reputation: 1564
Doze evil Wealtors...

Me thinks you like conspiracy theories.
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Old 08-02-2008, 02:10 PM
 
392 posts, read 1,400,307 times
Reputation: 134
My input... if you really believe that everyone is giving you bad advice.... try buying a home without a real estate agent. Good luck making offers 20% below asking price.
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Old 08-02-2008, 02:49 PM
 
Location: GA
2,736 posts, read 9,339,539 times
Reputation: 1075
Quote:
Originally Posted by SweepTheLeg View Post
Comps from when, is the question? The comps from 2006-2007 are worthless. Home values have dropped like a rock.
really? I assure you they're current. Everyone thinks they're going to get a bargain. The original list price is listed on the mls; it's no secret. If a house is taken off and re-listed, then all that means is they re-evaluated the situation and decided it was too high.
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