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Because.. someday you will be in that position and you will be insulted!!!
As for it NOT affecting the buyer..you're wrong.. sellers get insulted by the bottom feeders and the bottom feeder doesn't get the house.. and then they sell to the person that is serious and pays what the current market value is..
I'm talking MARKET VALUE here.. and yes, most often market value is lower than what a seller is expecting.. but those that offer a lot lower than the current market are just bottom feeding scumbags..
I hope TristansMommy will not be insulted by this reply but ironically your assumption is in fact a bit insulting. Making decisions and investments substantiated by rationale and proper calculations (not greed or emotions or plain foolishness) will 'usually' not place you in such a desperate situation. And....bottom feeding 'scumbags'??
The so-called fair market value is one offered by a willing buyer in an open market; it is not one that the seller or realtor or appraiser or anyone even the market 'expects.' The market is determined by the convergence of sellers and buyers anyway. The problem now is that current market conditions haven't stabilized for many buyers to know what offers to make -- they need to consider the trend (which is certainly favoring them) as well as other macro factors. If I were a seller who has to list my asset in these conditions, I would be prepared to accept the fact that anything can come my way and set aside all emotional attachments.
I disagree, even if you own the property outright and are not facing problems with a lender, you are still under pressure as the owner/developer. Why did the developer/owner build the property in the first place? To invest and MAKE money. He saw it as great opportunity 2-3 years ago and now it didn't turn in his favor. Every month a property sits on the market unoccupied is a LOSS. Sure you could rent out your unit (provided the HOA will even allow it and you can find a good tenant), but now you've just pissed off every owner/seller in that you sold the building to marketing it as "luxury condos".
This is not a rare situation in major metropolitan areas. Maybe it is not happening in who knows where Florida or Texas where one or two of the posters here are from, but in the rest of the country it is. Major metropolitan areas around the country have a glut of over-supply due to investors, developers and flippers trying to get in during the boom years. Not every neighborhood is affected, but you can bet those previously "up and coming" and fringe neighborhoods are feeling it. These guys can't find buyers and even renting out their "luxury condos" will not cover what they owe the banks. The only way these investors might be comfortable with sitting tight is if they had spread their risk into other types of markets or picking up additional investment properties on the downside of this market.
Hey maybe you got the brass ring. But most large scale developers I know, and I know several, are well capable of calculating the relative cost of moving the place at a deep discount rather than holding it. The only way they would buy such a deal is if they are in deep cash flow problems. That is not an unlikely situation at this point in the cycle so maybe it will work.
Note that any developer that deeply discounts is going to catch it from his present tenants. RE Agent remember who screwed the buyers for a long time.
I have this guy that works with me who is single and yet has sex at least 3 times a week usually with a new woman each time.
His secret?
He works in a high female traffic environment and is constantly hitting on every woman (I've seen him operate ...smooth!) that comes across his path. 99% turn him down right off the bat of course but guess what, that remaining .1% sure adds up pretty quickly with volume.
That's exactly what low-balling is like. Create a hefty list for yourself of homes within areas you like that seem promising to you and blanket them all with what you consider to be a reasonable offer for their POS. Make it clear to the buyer that you have no emotional attechment to the property (although you think it has potential) so you really don't care if your offer is rejected. Don't even respond to a counter offer, just move on ro the next home you like.
Sellers are people who are at varying stages of desperation, but it is desperation regardless. Sooner or later you're bound to locate the pitiful fool who for whatever reason has no choice but to accept your lowball offer.
After that you'll not only have bought an affordable home you'll also have become the stuff of folk legends: the hero who pioneered new low home prices for the entire area by dropping the sales price stats!
I have this guy that works with me who is single and yet has sex at least 3 times a week usually with a new woman each time.
His secret?
He works in a high female traffic environment and is constantly hitting on every woman (I've seen him operate ...smooth!) that comes across his path. 99% turn him down right off the bat of course but guess what, that remaining .1% sure adds up pretty quickly with volume.
Well let us examine your example. At ten minutes each that is 3000 minutes for 3 hits or 50 hours. So he spends more than his normal work week hitting on women. If he hired a cheap hooker he could get the 3 hits for maybe half his weekly salary. So he is not very bright.
Quote:
That's exactly what low-balling is like. Create a hefty list for yourself of homes within areas you like that seem promising to you and blanket them all with what you consider to be a reasonable offer for their POS. Make it clear to the buyer that you have no emotional attechment to the property (although you think it has potential) so you really don't care if your offer is rejected. Don't even respond to a counter offer, just move on ro the next home you like.
Sellers are people who are at varying stages of desperation, but it is desperation regardless. Sooner or later you're bound to locate the pitiful fool who for whatever reason has no choice but to accept your lowball offer.
After that you'll not only have bought an affordable home you'll also have become the stuff of folk legends: the hero who pioneered new low home prices for the entire area by dropping the sales price stats!
It does work rarely. You may also catch some poor demented old lady every 100 or so that sells you her house for half what it is worth. It happens.
So all you need is a 100, or better 200 properties and you may get a deal. Note that it is still not certain. Odds are cruel that way.
If however you look at limited geographic locations you will swiftly find that finding 200 acceptable homes may well take years rather than months.
You will not be a hero if you get one either. Such out of the usual pricing is discounted by both RE Agents and apprasiers. It is one data point of many and will have little impact. It will in fact generally not be used as a comp by anyone because it is to far off the normal.
Any way it may work on occassion if you long and hard at it. If however you value your time at any reasonable level you may find it costs most or all of the savings.
Well let us examine your example. At ten minutes each that is 3000 minutes for 3 hits or 50 hours. So he spends more than his normal work week hitting on women. If he hired a cheap hooker he could get the 3 hits for maybe half his weekly salary. So he is not very bright. .
Let's further examen your example of my example. It lacks business sense. The fact is my friend gets free sex while your method involves paying for prostitutes. Besides my friend has moral standards, an unfamiliar concept for RE agents.
Quote:
Originally Posted by olecapt
It does work rarely. You may also catch some poor demented old lady every 100 or so that sells you her house for half what it is worth. It happens.
So all you need is a 100, or better 200 properties and you may get a deal. Note that it is still not certain. Odds are cruel that way.
If however you look at limited geographic locations you will swiftly find that finding 200 acceptable homes may well take years rather than months.
You should know that RE agents are not allowed to transact property if all parties are not mentally fit, so the poor demented lady is safe in our local realtors hands. Right.
Quote:
Originally Posted by olecapt
You will not be a hero if you get one either. Such out of the usual pricing is discounted by both RE Agents and apprasiers. It is one data point of many and will have little impact. It will in fact generally not be used as a comp by anyone because it is to far off the normal.
Any way it may work on occassion if you long and hard at it. If however you value your time at any reasonable level you may find it costs most or all of the savings.
There are no free lunches.
Indeed, there are no more free lunches ..for RE agents!. I won't use your appraiser buddy, I'll get my own. And regardless of what the RE agent wants, I'm sending my offer directly to the seller so if they like the price the agent can go suck chrome for all I care. Datapoints?. I live in the REAL world!.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,098 times
Reputation: 677
Well, the main question of the thread was "How low have you been able to go with your lowball offers?"
I don't recall reading about any successes with lowballs. Of course this thread has gone on forever so if there were any, I've likely to have forgotten at this point.
What I'm reading is that the posters have been lowballing are having no luck with it. So thats telling me something. It should be telling buyers something, too, but apparantly it's not.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,098 times
Reputation: 677
Quote:
Let's further examen your example of my example. It lacks business sense. The fact is my friend gets free sex while your method involves paying for prostitutes. Besides my friend has moral standards, an unfamiliar concept for RE agents.
Are you talking about the guy who has sex three times a week with a different woman? Moral standards? Isn't that an oxymoron?
Let's further examen your example of my example. It lacks business sense. The fact is my friend gets free sex while your method involves paying for prostitutes. Besides my friend has moral standards, an unfamiliar concept for RE agents.
Whaddaya mean free? He works 50 hours to get laid three times. I value my time for internal purposes at $50 an hour. ($100 for external purposes). So he is at my rate spending $2500 bucks to get laid three times or $833 a pop.
Quote:
You should know that RE agents are not allowed to transact property if all parties are not mentally fit, so the poor demented lady is safe in our local realtors hands. Right.
I pointed out before that one could not represent you unless you had a guardian. But you are not an RE Agent so you can do as you see fit.
Quote:
Indeed, there are no more free lunches ..for RE agents!. I won't use your appraiser buddy, I'll get my own. And regardless of what the RE agent wants, I'm sending my offer directly to the seller so if they like the price the agent can go suck chrome for all I care. Datapoints?. I live in the REAL world!.
Appraiser follow a reasonably tight code. I presumed you would send your offer direct. However virtually all clients will then turn it over to their agent...you simply delay the process a day. And if the client is Notyourfriend LLC you can spend at least a week sending it off to the registered agent who then takes a week to send it to the owner who then gives it to the agent.
But whatever turns you on.
At this point Markablue is getting annoyed with me for bickering with you so I am going to stop before she whacks me. But you can have the last word.
surf...
Sorry but I think that your comment is very rude regarding re agents. They work hard. To say they don't have moral standards is very unfair. Maybe someone you dealt with didn't but then chalk that up to you had a bad experience. Our agent has been great! We met her in August and she has worked diligently for us out of state calling us every other day to help us find a home. She has been through 5 short sale nightmares with us, and when she finally gets her commission I don't even think its enough for all that she has done.
If you have a problem with agents then you should just keep it to yourself and not bash them on here. Who are you helping really? How would you like it if someone bashed the job you do.
have a nice day!
A lot of posts have been removed from here for personal attacks and off topic remarks. We don't care for arguments if they cannot be presented without insults. Stay on topic, please, or this thread will be closed as well.
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Making decisions and investments substantiated by rationale and proper calculations (not greed or emotions or plain foolishness) will 'usually' not place you in such a desperate situation. And....bottom feeding 'scumbags'?? 
