Dumbing down the price (7%, sales, percentage, comparables)

[willdufauve]

My previous house was on the market for $250k. A buyer offered me $180. When the realtor asked me to make a counter offer, I declined.

The buyer then offered $200k. The realtor asked me to make a counter offer but I declined again. By the time that buyer offered $225k another buyer came along and offered me full price so i sold the house to them.

The first buyer ended up with the next priced house on the market, one block away from me, at a full price offer of $380k. Brilliant strategy.

Between the comps, market, basket, expireds, etc. and my realtors advice, I'll try to price my house fairly. Offer me 50% less and I won't even respond, my time is worth something and I don't want to waste it clowning around with people.

[CouponJack]

Originally Posted by willdufauve

My previous house was on the market for $250k. A buyer offered me $180. When the realtor asked me to make a counter offer, I declined.

The buyer then offered $200k. The realtor asked me to make a counter offer but I declined again. By the time that buyer offered $225k another buyer came along and offered me full price so i sold the house to them.

The first buyer ended up with the next priced house on the market, one block away from me, at a full price offer of $380k. Brilliant strategy.

Between the comps, market, basket, expireds, etc. and my realtors advice, I'll try to price my house fairly. Offer me 50% less and I won't even respond, my time is worth something and I don't want to waste it clowning around with people.

You obviously weren't desperate like many sellers today. Also, its very rare for a seller today to get a full price offer.

Your situation is the exception, not the norm.

[ProLogic]

Thanks for the responses

[Shazam72]

Originally Posted by willdufauve

My previous house was on the market for $250k. A buyer offered me $180. When the realtor asked me to make a counter offer, I declined.

The buyer then offered $200k. The realtor asked me to make a counter offer but I declined again. By the time that buyer offered $225k another buyer came along and offered me full price so i sold the house to them.

The first buyer ended up with the next priced house on the market, one block away from me, at a full price offer of $380k. Brilliant strategy.

Between the comps, market, basket, expireds, etc. and my realtors advice, I'll try to price my house fairly. Offer me 50% less and I won't even respond, my time is worth something and I don't want to waste it clowning around with people.

I have to agree with CJ on this one. It would be foolhardy to take into account your very exceptional case as being the norm. It would all depend on the pattern they're seeing in their area. If similar houses are going for less than asking, no amount of curb appeal, staging or statues buried on your yard will bring a 10-20% reducing in asking price up to asking price.

[Southlander]

We've always low-balled our offers. If the seller chooses not to respond, we can always increase the offer. If the seller does respond...then we're getting somewhere. I'd rather start low..real low...otherwise I'd always wonder if I could have bought it for less.

[golfgod]

I think a lot depends on how attached to the new house YOU are. My opinion is; "never fall in love with something that can't love you back". You'll "overpay" every time. By "overpay" I mean pay more than you COULD have, not more than you SHOULD have.

In a declining market, where a house has been on the market for 120+ days, and you know the seller has already taken on another big financial obligation; then knowing their total indebtedness is a great benefit. I'd offer them (two months of payments) below their obligations, make sure the agent communicates to them that they'll be paying those debts for 2 more months anyway, 10 day closing, no contingencies.

I've bought and sold close to 100 houses, never had an offer "refused", always countered. OTOH I don't believe in too much back and forth, I'll either accept their counter, or re-counter closer to their number than to my original one, or reject it.

It's not an emotional exercise to me, it's just money.

golfgod

[kevinm]

People aren't going to willingly sell a house for less than they owe on it. Most people cannot go to settlement with the keys to the house and a housewarming gift of $150K to make up the difference.

[Shazam72]

Originally Posted by kevinm

People aren't going to willingly sell a house for less than they owe on it. Most people cannot go to settlement with the keys to the house and a housewarming gift of $150K to make up the difference.

couple of two word phrases to quickly address sellers who must sell under those circumstances:

short sale
jingle mail

For whatever reason, when motivation is high enough, a seller's desire to sell for more than the cost of the mortgage becomes increasingly irrelevant

[Fredlu33]

I would ask all, shoulden't the current market conditions be taken into account? You seem to be in a position of don't need to buy at least yet. Let's be real, it's pretty much a buyer's market. Buyer takes a chance the market will continue to fall as does the seller.Let's face it that is the most likely direction.

[younglisa7]

My dh and I are cash buyers, no inspections, close it within 1 week if it has a clear title. There is absolutely no emotion involved- it's just business. If you don't like the offer just say no- we don't counter.

Two years ago we offered 350K on a 599k house-they said no. It just sold 2 months ago for 370 but they had at least 20k in carrying costs plus a slightly higher commission.

Last year we offered 350k on a 459k house. They said no and 13mo. later it is still on the market for 349k and can't sell.

We always check the tax records. I want to know what has sold, the condition and location of the homes, and what their mortgage is. I'm not here to clean up the mess people got themselves into. We only offer what we think the house is worth. If you don't like it you can keep paying the bills. Right now in our area we think the homes are worth the 2001-2003 levels and no more.