Reasonably priced = reasonable buyers? (agents, offers, state, builders)

[nativeDallasite]

Originally Posted by talk2u

Just something to keep in mind...

Yes, this is a buyers market and I don't blame you for trying to get the best possible price you can in a falling market. However, keep in mind that when a seller accepts your low-ball offer, you've just set the tone for the entire neighborhood. Now everyone in your new neighborhood who wants to sell will have to price their home according to the price you just paid, if they want to sell in a reasonable amount of time. Essentially, what you have done is just brought the entire neighborhood's values down. Heaven forbid you lose your job or fall ill and have to sell your home before the market recovers. Will you want to be low-balled even if you've priced your home appropriately? I would think not.

That's just a risk I'd have to take. I have a lot of savings, so I'd almost certainly be OK. Also, when I buy I plan to stay put for a long time so near-future market conditions hopefully will not be a problem.

[verobeach]

As a seller who does not have to sell his/her home out of desperation, I told my realtor yesterday that we'd have different strategies for different buyers as far as accepting offers. A strong buyer, someone respectful of our needs as a seller vs. a pushy type lowballer who wants us out in two weeks (cash or no cash buyer) will all reflect on how we bargain.

In another era, when we sold our last home in another state, we received 5 offers, 3 over asking price. Of the 3 offers, we selected the lowest offer (still $15,000 over price) because we had a gut feeling about the buyers. It wasn't worth the $5,000 to us to go through the negotiations with someone who churned us up from the get-go.

[InflationNation]

Originally Posted by nativeDallasite

That's just a risk I'd have to take. I have a lot of savings, so I'd almost certainly be OK. Also, when I buy I plan to stay put for a long time so near-future market conditions hopefully will not be a problem.

Wish females in the Raleigh area were as sensible as this person .

The upcoming economic recession will catch many off guard, as most of these 20 somethings have only really witnessed prosperous economic times.

[InflationNation]

Originally Posted by verobeach

As a seller who does not have to sell his/her home out of desperation, I told my realtor yesterday that we'd have different strategies for different buyers as far as accepting offers. A strong buyer, someone respectful of our needs as a seller vs. a pushy type lowballer who wants us out in two weeks (cash or no cash buyer) will all reflect on how we bargain.

In another era, when we sold our last home in another state, we received 5 offers, 3 over asking price. Of the 3 offers, we selected the lowest offer (still $15,000 over price) because we had a gut feeling about the buyers. It wasn't worth the $5,000 to us to go through the negotiations with someone who churned us up from the get-go.

So only someone who "respects your wishes as a seller" will be worth a decent counteroffer?

It's great that you don't have to sell out of desperation. Problem is, some do and that'll hit the comps whether you sell or not.

You play with buyers at your own peril. If all you have are "lowballers" (again in quotes 'cause there ain't no such thing), then playing games could be very risky.

[nativeDallasite]

Originally Posted by InflationNation

Wish females in the Raleigh area were as sensible as this person .

The upcoming economic recession will catch many off guard, as most of these 20 somethings have only really witnessed prosperous economic times.

I'm old enough to remember the recession we had in the early 1990s; I was in high school getting ready to go to college, and when I started college the general attitude among us was "what's the point, there won't be any jobs when we graduate anyway." I didn't see the harm in hiding from the economy for four years while in college, because these things are cyclical and by the time I graduated in 1997, the economy was in much better shape. I've never experienced a bad economy as a working adult; I hid from the post-9/11 recession because I was overseas and the UK did not experience a recession after the dot.com bust. So...if we do have a recession, it'll be a new experience for me as a working adult.

However, I have vivid memories of working in a cafe in high school alongside degreed professionals who were trying to pay the bills by taking a minimum-wage job. I decided then that I'd save, save, save and make sure that I'd do everything possible to ensure that wouldn't happen to me. There are no guarantees in life and I'd hate to burn through my retirement savings, but at least I'd have that option. I have enough in my checking account right now to pay my rent for the remainder of my lease, and enough in savings to live my current lifestyle for at least five years. Beginning with the bonus I'm hoping to get, I'm going to divert my retirement savings into saving for a down payment, and I'll draw a little bit on my retirement account to do that if need be. Since I plan on staying put for a long time, I think I can get away with a smaller down payment. My BF can get a mortgage through the VA so that's a great option for us if traditional lending doesn't offer a better deal.

[verobeach]

Having my house on the market does't mean I've signed up to be abused or insulted. Neighbors are constantly walking away from offers because the 'new crowd' does a little more than just kick their tires.

[PotterGeek]

Having my house on the market does't mean I've signed up to be abused or insulted. Neighbors are constantly walking away from offers because the 'new crowd' does a little more than just kick their tires.

Absolutely correct and karma can be a pain in the you-know-what.

[CouponJack]

Originally Posted by talk2u

I don't feel sorry for first-time home buyers then or now. I bought my first home in my 20s. I was single and making $40K/yr with a car payment and student loans. I knew what I could afford and I bought accordingly. I could afford my payments and sold it to buy a bigger home in my 30s.

I'm tired of people saying first-time buyers are priced out. Buy something that's in your price range, or make adjustments in your lifestyle so that you can afford to buy a home, if that's what you really want to do.

Just like you don't want to pay for a sellers bad choices, I'm not going to pay for a buyers big dreams.

I'm not disagreeing w/you. Home ownership is a priveledge, not a right. I have no problem with your statement IF median incomes were in line w/home prices (not ALL, but many). Problem is for the past 5-10 years they have not been in many, many markets.

If pricing were to fall back closer to historical levels, then you'd be 100% dead on.

[CouponJack]

Originally Posted by verobeach

As a seller who does not have to sell his/her home out of desperation, I told my realtor yesterday that we'd have different strategies for different buyers as far as accepting offers. A strong buyer, someone respectful of our needs as a seller vs. a pushy type lowballer who wants us out in two weeks (cash or no cash buyer) will all reflect on how we bargain.

In another era, when we sold our last home in another state, we received 5 offers, 3 over asking price. Of the 3 offers, we selected the lowest offer (still $15,000 over price) because we had a gut feeling about the buyers. It wasn't worth the $5,000 to us to go through the negotiations with someone who churned us up from the get-go.

I'm glad you've made the disclaimer that you are not "selling a home out of desperation". It makes a huge difference obv. so you have the luxury to "pick your offers" so to speak.

I would think the overwhelming majority of sellers just would just like to have ONE offer at least.

[verobeach]

Originally Posted by CouponJack

I would think the overwhelming majority of sellers just would just like to have ONE offer at least.

Oh, I'd like to have just ONE at least too. But if it's the wrong offer then we'll let it go by.