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View Poll Results: What is considered a "low ball" offer?
10-20% Below Asking Price 12 15.58%
20-30% Below Asking Price 48 62.34%
30-40% Below Asking Price 9 11.69%
40-50% Below Asking Price 7 9.09%
50-60% Below Asking Price 1 1.30%
Over 60% Below Asking Price 0 0%
Voters: 77. You may not vote on this poll

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Old 11-08-2014, 07:58 AM
 
Location: Northern Maine
10,428 posts, read 18,567,552 times
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"so I don't know what she was thinking by submitting it."

In most states a broker or agent is required to present all offers. The seller has four choices:

1. Accept
2. Reject
3. Counteroffer
4. Ignore the offer and don't even reply to the insult.

People's needs change.
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Old 11-08-2014, 08:39 AM
 
Location: The Triad
34,091 posts, read 82,498,922 times
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Quote:
Originally Posted by bbronston View Post
I have to respectfully disagree
..."low ball" is a commonly used phrase that means unrealistically low.
Going back to the original usage (Baseball) it describes a low pitch.
One that the pitcher doesn't expect the batter to hit but who might be suckered into swinging at.
Emphasis on that "suckered into" part.

As regards RE it's just a number.
Sellers can (should) counter offer or ignore an otherwise solid offer at their own risk.

Sometimes though, the buyer knows more than the seller.
Just like some batters who will actually like 'em low.
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Old 11-08-2014, 09:22 AM
 
Location: Denver CO
24,204 posts, read 19,038,282 times
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I think it totally varies by market and listing price. In a hot market, where things sell in a day above asking price, then anything below asking is probably perceived by the seller as a low ball. If it's a market where things sit for 6 months and the house is priced 25% above comps, than even 30% below wouldn't really be a low ball, just a realistic negotiation starting point. Not that the seller would necessarily agree, of course!
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Old 11-08-2014, 09:31 AM
 
4,676 posts, read 9,937,376 times
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It depends on how the home is priced. It should be priced according to comps. But then many sellers believe their home is worth more than it is.

My old house recently came on the market. It was priced about 10% lower than comps for the subdivision. Someone offered 5% less than list. The seller thought that was a low ball offer. 5%! House sold for 7% over asking price. And it appraised for financing.

Funny thing about that subdivision......most homes are colonials.......and take 9+ months to sell. My old house was 1-1/2 stories with master and office on first floor. Took less than 3 months to sell. And everybody wrinkled their noses at me when I built it nearly 20 years ago.
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Old 11-08-2014, 09:37 AM
 
Location: Florida -
10,213 posts, read 14,748,412 times
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The 'Asking Price' needs to come out of the equation ... particularly in an environment where many sellers are clinging tenaciously to "How much they need in order to break even" or "The market value of the home a few years ago when prices were at their peak."

Further, "lowball" is in the eyes of the buyer or seller. A seller might call any offer below their asking price a 'lowball', while the seller might simply be saying, "This particular house is worth this much to me ... and no more." In either case, solid, justified comps are more important than emotions (or 'asking price') in any negotiation.
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Old 11-08-2014, 04:57 PM
 
15,631 posts, read 26,122,878 times
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Quote:
Originally Posted by MaseMan View Post
I'd say 20% or more below asking...assuming the price is listed reasonably.

When my parents were selling their last home, it was a property with a lot going for it. Many updates, decent lot at the end of a dead end road (but in town). Very fairly priced based on the market at the time. The first offer they got was about 30% below asking. The prospective buyer's realtor was very established and familiar with my parents, so I don't know what she was thinking by submitting it. My parents rejected it, and eventually sold for just a bit below their asking.
I could be wrong, but I believe any offer that is written has to be presented, even if it's stupid, as in offering 10K for a 100K home.

I do agree with Mike -- emotions should be removed from the rejection. But you can simply reject, not counter. IF the buyer wishes to write another offer, his real estate agent should point out the comps and condition of the home as a reason to stop being stupid. But unfortunately, you can't fix stupid and people buying and selling home often are. Or at least totally blind to the truth.

I was listening to a real estate guy on the radio who said that his job isn't to sell a house. It's his job to bring buyers and offers to the table, and it's up to the seller to sell. It's also up to the seller to do the work to present his property in the best light. I think I get what's he's saying, and this is a perfect example of it.
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Old 11-08-2014, 05:58 PM
 
Location: Purgatory
6,365 posts, read 6,217,205 times
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Thank you to all who have responded thus far!

I just want to say that I realize this poll is "flawed" and "subjective."

I want to see opinions, ideas and discussions around it since I hear this subjective term a lot and would rather understand via a group of various people what the term means vs just one opinion some random person online gives.

Sometimes it's helpful understand a subjective concept by hearing from lots of (semi) random people.
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Old 11-08-2014, 06:04 PM
 
Location: Brentwood, Tennessee
49,932 posts, read 59,591,995 times
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The problem is the question can't be answered the way you've worded the poll.

I could ASK for a million dollars for my house, and then call any realistic offer a "lowball" since it would only sell for much less than that.

It is ALL market related, and that varies. bbronston had it right when s/he said a lowball offer is an unrealistically low offer. You can't assign percentages to it.
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Old 11-09-2014, 01:09 AM
 
Location: Purgatory
6,365 posts, read 6,217,205 times
Reputation: 9887
Quote:
Originally Posted by Wmsn4Life View Post
The problem is the question can't be answered the way you've worded the poll.

I could ASK for a million dollars for my house, and then call any realistic offer a "lowball" since it would only sell for much less than that.

It is ALL market related, and that varies. bbronston had it right when s/he said a lowball offer is an unrealistically low offer. You can't assign percentages to it.

Yes, i acknowledged this is a subjective question that is helping me understand the concept. (See my post RIGHT ABOVE this one.)

Future posters- it is understood the poll is "flawed." Thus is unnecessary and a waste of words to keep pointing it out. Thank you.
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Old 11-09-2014, 03:50 AM
 
Location: Riverside Ca
22,146 posts, read 33,237,834 times
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I really don't think of a offer as lowball. Because they're all offers. There are offers I say yes or no or let's talk. If a seller feels their house is worth a and I feel its worth g then the seller has a few choices. He can say nothing, no, yes or come back with a number and we go back and forth till we find a number were both happy with. If we can't then we can't.
If someone offers something and I feel it's not good enough a very simple no thank you will suffice. I'm not gonna get mad over it. I'll wait for another buyer but I'm not gonna lose it.

The problem is people don't want to negotiate anymore.For whatever reason it's their price and nothing else. Or they need x amount to break even, they believe their house is worth x and NOBODY will steal it from them. Eventually a year down the road maybe two the house prices are gonna be high enough to warrant their price ( maybe) and by GOD they WILL get their price ( and they can now tell every one of their friends they didn't get "screwed")
People get way too emotional over houses. Hey if the house is worth that much to you why are you selling it. Nobody wants to pay for YOUR emotional attachement or financial hiccup. There are only another five thousand houses just like yours for sale.
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