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I'm in my 41st year in real estate. I am proud of my profession.
My clients today are all referrals or repeat clients. I do not "door knock" for business (nor have in many, many years)
The poster who criticizes - no, HATES real estate agents, might like to consider the above for, if I had been taking advantage of my clients a) I would not get referrals, b) I would not be getting repeat clients and c) I would not have been able to have almost 41 great years in this profession.
Another thread that has gone way off-topic from the OP's original post. Why are the same realtors and sellers even commenting in this thread. We all know how much you get personally offended from "lowballing" blah blah blah. No one cares.
I think lowballing depends on the specific market and seller's circumstances. Just saw a condo last week. Its a developers close out unit and the last one he needs to sell. Priced at $350,000, while comps are going for almost $100K more in the rapidly declining market. However buyers have been struggling for to obtain financing and some of the investors who did buy in the building are now facing short sales and forclosures. Overall the developer wants to get out bad and the listing agent was very frank: the developer would consider any offer, I repeat ANY offer regardless the comps in the area. The listing agent mentioned the seller would 99% most likely counter to any lowball offer. For all the people stressing "Fair Market Value", you do realize that the market is dynamic dont you? What sold in the past 30 days might not be the same prices or what sells one month from now. Each new foreclosure and each new "lowball' that does get accepted IS the market, and IS the reality no matter how much you dislike this. With many areas of the country rapidly declining in home prices how can you even claim that one should stick close to the FMV?
I'm in my 41st year in real estate. I am proud of my profession.
My clients today are all referrals or repeat clients. I do not "door knock" for business (nor have in many, many years)
The poster who criticizes - no, HATES real estate agents, might like to consider the above for, if I had been taking advantage of my clients a) I would not get referrals, b) I would not be getting repeat clients and c) I would not have been able to have almost 41 great years in this profession.
This argument sounds familiar: "I would not get referrals, I would not be getting repeat clients and I would not have been able to have almost 41 great years in this profession"
Oh yeah! I remember now: Ricki Lake: I'm a Prostitute & Proud of It
Tristan'sMommy: You want to "lowball" go buy yourself a bank owned foreclosure.. !!!! Geez.. even the banks won't go that low and are taking a min of 90% of the appraised value!!
Whta goes around comes around.. lowball now... then someday when you go sell your home that youlve lived in , done work too etc.. and have someone come in and insult you with a lowball offer.. lets see how you feel then!!!!
This is not complicated. The REPOs are generally priced to a different price line than the non-distressed. That is how it is.
If you want to live in certain nice areas you simply will not get a REPO price.
UNTRUE! ..as usual I must add.
The fact is that REO homes nowadays are still ridiculously overpriced because the lender (now owner) continues to hold out for top dollar. Look at the REO price and the price when the home was still on the conventional market and you'll see there has been almost no discounts at all!.
This is due to the fact that banks & lenders are still hoping for a market bailout from Obama. They're stalling in the meantime hoping to recoup some of their losses. Once it becomes clear that Obama CANNOT bail them out (because the USA is already broke!) you'll see these homes selling for a ham sandwich & a coke.
The fact is that REO homes nowadays are still ridiculously overpriced because the lender (now owner) continues to hold out for top dollar. Look at the REO price and the price when the home was still on the conventional market and you'll see there has been almost no discounts at all!.
This is due to the fact that banks & lenders are still hoping for a market bailout from Obama. They're stalling in the meantime hoping to recoup some of their losses. Once it becomes clear that Obama CANNOT bail them out (because the USA is already broke!) you'll see these homes selling for a ham sandwich & a coke.
Look I do this for a living. The price of a median Single Family REPO in Las VEgas in December was $163,000 or $91.84 per square foot. The REPOs averaged $184,000 or 91.48 per SF. The non-REPOs had a median of $215,000 or 107.89 psf and an average of $256,000 or $115.49 per square foot.
The number are not yet final but there were about 1700 REPOs and 580 non-REPOs sold.
I would compare the PSF numbers as there are size differences. The REPOs tend to the smaller homes.
Them is the facts dude...now get your mind around them.
Look I do this for a living. The price of a median Single Family REPO in Las VEgas in December was $163,000 or $91.84 per square foot. The REPOs averaged $184,000 or 91.48 per SF. The non-REPOs had a median of $215,000 or 107.89 psf and an average of $256,000 or $115.49 per square foot.
The number are not yet final but there were about 1700 REPOs and 580 non-REPOs sold.
I would compare the PSF numbers as there are size differences. The REPOs tend to the smaller homes.
Them is the facts dude...now get your mind around them.
Thats great, but do you solely base all offers on statistics and numbers? Seller motivations and circumstances does not play into it at all?
Thats great, but do you solely base all offers on statistics and numbers? Seller motivations and circumstances does not play into it at all?
On REPOs...you are kidding right? REPOs are perfectly transparent. The lenders want to be rid of them and quickly and set the price accordingly. The only thing you care about is the opposition. The good REPOs sometimes draw four or five offers in the first week. And some are investors bidding relatively low and some are owner occupants bidding relatively high and you need to guess correctly what it takes to buy the place.
You can sometimes get some views on the status of a non-REPO but even that is difficult information to interpret. And often it does not help. You find out for instance that the seller is listed at a price that breaks even. You think they will drop below that? Don't hold your breath...it could happen but it is very rare. Many never come down they just take it off the market and stay in it or lease it.
So maybe 1 time in ten you know something useful. Then you use it.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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Quote:
Originally Posted by bboy1977
Thats great, but do you solely base all offers on statistics and numbers? Seller motivations and circumstances does not play into it at all?
Yes, but not everyone is a distressed seller. I think that's where the buyer's frustrations are coming from. They hear all this hype from the media and assume everyone selling is in a pickle. Therefore, they lowball and get pissy about their rejected offers.
If the sellers are indeed overpriced, they will come to terms on their own, in due time. Alot of listings going up in my neck of the woods are priced for today's market, not 2005 or 2006. If they're priced appropriately, does one still lowball?
You know...my buyers that bought my house in May tried to lowball me, and I was FSBO. They offered me $175k on a house that was priced aggressively at $229k. I did counter but told them the counter was good for one week. After not hearing back from them, we decided we would list it with a realtor and temporarily took the house off the market to do some tile work in the bathroom. We just happened to put out our FSBO sign a week before the realtor was set to list the house. Those people who lowballed us called us the very next day (along with 3 others), and they thought we had sold the house to someone else. They then offered full asking price PLUS they paid their own closing. Know why? They knew they were getting a good deal.
So, point of story...not all offers dictate market value.
Perhaps I just got lucky
However, I think the repo market is big enough right now that anyone can find a bang up deal. Just don't expect me to sell you my house for a repo price.
(Disclaimer: I'm not a home seller OR a realtor)
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