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Old 02-22-2009, 08:11 PM
 
Location: Tricoastal
353 posts, read 679,767 times
Reputation: 264

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What if there is an argument about which comps count? My aunt made a lowball offer on a house in Miami that is an FSBO. She provided sold comps with the offer, comps from the same neighborhood mind you, over a 6-month period (including a comp from within the last month). The seller says those comps don't count; seller says the comps that count are the ones she determines, i.e., sold comps from a wider area (including other, more expensive neighborhoods) and older sales.

What determines which comps are legit?
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Old 02-22-2009, 08:14 PM
 
Location: Colorado Springs, CO
1,570 posts, read 5,163,567 times
Reputation: 1388
I'm a Realtor - I find that some owners do take offense - they take it personally. (I hate to see that happen.) However, if the seller is a business person they tend to take it in stride. After all, even a too-low-ball-to-be-real offer is not a personal insult. There is really nothing personal about a piece of paper. To my sellers I have no single advise (to reject or counter) it really depends on the property, traffic, or maybe the seller's objectives, etc.
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Old 02-22-2009, 08:34 PM
 
Location: Gallatin Valley
491 posts, read 1,138,950 times
Reputation: 408
How do banks feel about low ball offers? Do they care?
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Old 02-22-2009, 08:35 PM
 
112 posts, read 330,709 times
Reputation: 134
It's easier to say no. Life's too short to get angry.
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Old 02-23-2009, 07:10 AM
 
49 posts, read 104,307 times
Reputation: 40
From what I have observed in reading this forum, many of the sellers who are the most offended by low balls seem to be sensitive because they know they are overpriced and are frustrated at the declining prices.

I think most reasonable people would agree that there is nothing wrong with making an offer in line with appropriate comps regardless of the asking price (especially if you send them the comps you are using). I'm sure there are many listing agents out there that would welcome this so their seller could hear it from someone else.

One point that I would like to make is that if offers were always in line with comps, prices would never change (up or down). So you need to understand that in a declining market, someone coming in under comps does not mean it is an inappropriate price. Likewise in an increasing market, it would be reasonable to expect offers to come in above comps.

Sellers also need to understand that regardless of comps the current supply vs demand will affect prices. I am looking at a market where, in 3 comparable neighborhoods, there are currently 35 houses for sale. About 3 houses a month have been coming on and about 1 house every other month has been selling. It is unreasonable to expect anything other than declining prices in this market. If I decide to buy it will be at a level below comps. Does that mean I am lowballing - I don't think so.
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Old 02-23-2009, 07:14 AM
 
1,340 posts, read 3,233,419 times
Reputation: 447
Quote:
Originally Posted by saltzman143 View Post
What if there is an argument about which comps count? My aunt made a lowball offer on a house in Miami that is an FSBO. She provided sold comps with the offer, comps from the same neighborhood mind you, over a 6-month period (including a comp from within the last month). The seller says those comps don't count; seller says the comps that count are the ones she determines, i.e., sold comps from a wider area (including other, more expensive neighborhoods) and older sales.

What determines which comps are legit?
It is more like WHO determines. This is the area of real estate that I noticed is so vague. I had 3 realtors come to my house and show me COMPS and all three had wide price differences based on their comps.
Which by 3 realtors are all different.

OLD sales in todays market are MEANINGLESS. Anyone who suggests different is a hack and not aware of the reality of what is going on in the real estate market. (old meaning > 6 months) Heck 3 months is still a stretch in todays market if you ask me. But 6+ is insane to consider for a buyer or seller.

Different neighborhoods also wouldn't play in my book. It is different. Simple as that.

So I personally would base my comps on sales within the past 90 days within 1/2 miles to 1 mile max distance (ideally all in same neighborhood).
Which I think most realtors will aim for to some degree. But if sales have been lacking then you have to widen those parameters to at least get an idea of what the fair market value may be for the home.

I would tell the FSBO to pound sand on the comps. You are arguing with someone who is not being logical and is in denial in many respects. They sound emotionally attached to their house and by stretching the comparable comps to old sales and different areas is never going to make you them both see eye to eye.

Have her make her best FAIR offer in her opinion and tell her to move on.
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Old 02-23-2009, 07:19 AM
 
5,273 posts, read 6,397,518 times
Reputation: 14920
We had a buyer give us an 80k below the asking price lowball offer!!
We countered with the original asking price! We laughed and then found a suitable buyer after that fiasco lol.
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Old 02-23-2009, 07:23 AM
 
Location: Barrington
41,894 posts, read 31,743,839 times
Reputation: 14083
Quote:
Originally Posted by saltzman143 View Post
What if there is an argument about which comps count? My aunt made a lowball offer on a house in Miami that is an FSBO. She provided sold comps with the offer, comps from the same neighborhood mind you, over a 6-month period (including a comp from within the last month). The seller says those comps don't count; seller says the comps that count are the ones she determines, i.e., sold comps from a wider area (including other, more expensive neighborhoods) and older sales.

What determines which comps are legit?
This sounds like a seller who wants her price more so than she wants to get sold. Either wait her out or move on.
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Old 02-23-2009, 07:25 AM
 
Location: Barrington
41,894 posts, read 31,743,839 times
Reputation: 14083
Quote:
Originally Posted by Desertrose34 View Post
How do banks feel about low ball offers? Do they care?
It's not personal.
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Old 02-23-2009, 07:49 AM
 
Location: Where I want to be!
6,196 posts, read 4,800,224 times
Reputation: 2575
This whole low-ball offer situation is mind boggling. I believe it is mostly due to the fact that everyone has a different opinion as to what makes it a low-ball offer. As a seller, I priced with the comps and fully expect someone to offer less, shoot I would to if I was a buyer. But if someone comes in and shows recent comps, comparing apples to apples, then I would say the seller needs to adjust to sell. Now if a seller comes in with an offer of say 20%-30% off the price with no data behind it that is a Low ball, wont offend me but they wouldn't like my counter either. Buyers coming in and trying to deal to cover future depreciation on what may or may not be correct is another story. Right now in this market I would look at any offer just to get the "talk" going, and if they are real buyers, well maybe we could work through it.
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