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Old 07-14-2012, 12:50 PM
Status: "In an Involuntary Time Warp" (set 23 days ago)
 
7,849 posts, read 10,147,526 times
Reputation: 11398

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I had a low ball offer on a house I just sold, month ago. I rejected it, they came up and I wouldn't entertain it even though much higher. I got a sour taste from them and wouldn't sell them it unless it was list price at that point. But, that's just me. I sold it to an all cash buyer and they were easy to deal with people and their realtor okay. This was our 2nd realtor who was better to deal with, too.
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Old 07-14-2012, 01:31 PM
 
Location: The Triad (NC)
26,847 posts, read 57,851,863 times
Reputation: 29261
Quote:
Originally Posted by Upstate Nancy View Post
I had a low ball offer on a house I just sold, month ago. I rejected it...
I (later) sold it to an all cash buyer
Good point.
If you come in low you really do have to make it an uncomplicated deal.
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Old 07-14-2012, 02:25 PM
 
Location: NJ
17,579 posts, read 38,295,421 times
Reputation: 16098
Quote:
Originally Posted by Upstate Nancy View Post
I had a low ball offer on a house I just sold, month ago. I rejected it, they came up and I wouldn't entertain it even though much higher. I got a sour taste from them and wouldn't sell them it unless it was list price at that point. But, that's just me. I sold it to an all cash buyer and they were easy to deal with people and their realtor okay. This was our 2nd realtor who was better to deal with, too.
I'm glad it worked out for you, but I think that is actually a terrible way to try and sell your house.
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Old 07-14-2012, 03:31 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
20,792 posts, read 37,464,612 times
Reputation: 20814
Quote:
My agent doesn't want me to low ball. Advice?
... another reason I don't use 'agents'... It is SO refreshing / time expedient to meet FACE:FACE with seller and negotiate a WIN:WIN. AND get on with it.... I have ZERO tolerance for petty; 'I'll submit this and we'll see what they say".. YOU'RE FIRED

You can offer anything you want and YOUR agent is obligated to write the offer.

In current market I feel anything within 20% of asking price is reasonable. Personally, I will ONLY buy if I get something 30% below PRIME Market resale (It takes 10% just to break even).

Lay out your cards, be prepared to walk away (as always).

('recreational' RE investor of 30+ properties 1 (one) with the 'help' of an agent)
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Old 07-14-2012, 06:06 PM
 
3,576 posts, read 5,904,462 times
Reputation: 1431
Quote:
Originally Posted by StealthRabbit View Post
... another reason I don't use 'agents'... It is SO refreshing / time expedient to meet FACE:FACE with seller and negotiate a WIN:WIN. AND get on with it.... I have ZERO tolerance for petty; 'I'll submit this and we'll see what they say".. YOU'RE FIRED

You can offer anything you want and YOUR agent is obligated to write the offer.

In current market I feel anything within 20% of asking price is reasonable. Personally, I will ONLY buy if I get something 30% below PRIME Market resale (It takes 10% just to break even).

Lay out your cards, be prepared to walk away (as always).

('recreational' RE investor of 30+ properties 1 (one) with the 'help' of an agent)
Well you are an investor. Your needs are different than someone else who looks at a home as place they may live in for next 10 years or so. You look at the bottom line and it's a business decision.

Of course most would want distress properties for 20% off market value. It takes a lot of time and effort.

Just ask yourself when you sell your properties. You obviously want the max for your property and someone offers you 20-30% off a non distress property (you being the owner selling). Would you sell your property at 30% off market rate?
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Old 07-14-2012, 07:07 PM
 
Location: Phoenix AZ
5,920 posts, read 10,440,488 times
Reputation: 9226
Quote:
Originally Posted by StealthRabbit;
You can offer anything you want and YOUR agent is obligated to write the offer.
I've heard that before on message boards, and it isn't true in my state - a buyers agent here can refuse to work with you, they have no obligation to write silly offers.

A sellers agent *may* be required to present silly offers, however if that agent wrote their listing agreement properly, they can trash offers under $xx amount and any verbal offer without bothering their seller.

When I sold my last house, I filled in the magic number and told my agent to "file" anything below that number- I expected *my* agent to weed out the dreamers.

As a buyer, you would have no "right" to know the terms of that listing agreement & that agent can ignore you.
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Old 07-15-2012, 01:00 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
20,792 posts, read 37,464,612 times
Reputation: 20814
Quote:
Originally Posted by aneftp View Post
Well you are an investor. ... they may live in for next 10 years or so.
. I hear this "emotional' argument all the time from sales folks... I NEVER buy any real estate that I would not want to keep THE REST of my life... RE is NOT a liquid asset. BUT... I never play the 'Emotion' card on my buyers or sellers, or self. WAY too tacky for the level of capital and commitment. My properties have (and will always be) VERY attractive / desirable. (I ONLY buy stuff I COULD sell if I have to (but that is not guarantee it WILL sell...))


Quote:
. You obviously want the max for your property and someone offers you 20-30% off a non distress property (you being the owner selling). Would you sell your property at 30% off market rate?
Wrong again... I often cut sweet deal to my tenants of folks that like my homes. I do lots of 1031's and have no problem passing savings along to others. My tenants call me the NON-Capitalist, benevolent landlord. I get no satisfaction on seeing folks ripped off by inflated valuations or inflated egos of Sales Personnel.

I have many times walked first time buyers through the WHOLE process and gave them a sweet deal on a very nice rural or commercial property. (I NEVER buy subdivision / cookie cutter properties). I stay in contact and often provide FREE services to former buyers / tenants (for buying / contract / negotiation / even maint and repairs). I have NO interest in 'collecting' $10-40k COMMISSION. RE transactions for homes are usually DEAD simple. Complicated stuff is usually zoning and UGA / planning battles as well as SEPA mitigations for commercial props. I do my own and help friends with that too. I have a few REAL jobs also... RE is a piece of cake and personal residences even simpler... (instant pancakes).

BTW: OP IS NOT making a low ball offer, nor is this a distressed property. THIS IS a VERY long time on Market 20% off a STAGNANT dog is not a tear jerker. I would NEVER even ASK an agent what they THOUGHT I should offer. That totally messes up your 'bargaining' power, AND illustrates your inept understanding of the market / negotiation process.

There is a reasonable price for everything. Not everyone is reasonable. You ALWAYS make your money on the PURCHASE not on the sale... (same with Stocks / Businesses, Collectibles...) when plunking down the cash, ONLY YOU have a personal risk... KNOW your market WELL. Check your emotions, and DON"T get attached to any DOGS.

BTW: thx for the reps
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Old 07-15-2012, 02:03 PM
 
4 posts, read 7,205 times
Reputation: 10
"My agent doesn't want me to low ball. Advice?"

Do you literally mean your agent doesn't want you to so you're asking others? Your agent has to present all offers. I might see 'doesn't think I should' or 'there's a lot of offers coming in so I might lose it'...but the agent just doesn't want you to do something?

Make the offer you feel is right. Can you do a home inspection? If it's being sold "as is" you can still write in you want a home inspection for your own edification and the contract is not contingent on a home inspection. Then if the inspection reveals all kinds of trouble you can bail on some other reason...well, make sure you have one in place. Basically whatever would cause you to lose your financing. Not positivie, but I believe approval of hoa restrictions and bylaws is still a valid contingency even on 'as is' properties because it's part of what you're buying into. Good luck.
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Old 07-15-2012, 03:37 PM
 
Location: Florida -
8,238 posts, read 9,994,274 times
Reputation: 15087
Make the offer with a serious deposit ($5-10K) and be sure that your agent specifically justifies the offer based on your considerations and existing comps. The seller will see that you are a serious buyer and may re-think their 11-month, no sale position. In this RE market, any seller with some degree of common sense will see your offer as a potential opportunity to negotiate toward a possible sale. (This business of being afraid that a seller will be offended by a low-ball offer is vastly over-exaggerated. There are a ton of sellers out there with no offers! -- You never know until you ask)
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Old 07-15-2012, 03:49 PM
 
Location: Salem, OR
13,741 posts, read 31,562,927 times
Reputation: 12105
By my definition, I would call it low, but not low-ball. Low-ball would be like $70k or something. It is great that the seller did all that work on the house but that kind of work doesn't add a whole lot of value in my neck of the woods since they aren't upgrades, but just maintenance. I am sure what they are doing is looking at the same comp you are and adding the costs of all the work they did to the house to it. Unfortunately, it just doesn't work that way for some things.

Your agent can soften the low offer with a letter to the seller explaining your reasoning for it. That's what I do when I write low offers. At least, I always get a counter offer back, which is the goal.
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