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It seems that in today's Buyer's market, some naive sellers considers any offer off their 'list' price as insulting....conversely, it seemed that in yesterday's Seller's market, any offer which wasn't at least at 'list' price was also considered an insult.
That 'lowball' offer today will be tomorrow's market adjustment...
An offer at an 'insulting' % off the list price is a lot better than all those 'other' offers of 0%....
If that is the case then I agree. However, I would posit that in most cases it is the owners who disregard an agent's advice and set a listing price that is either what they think their house is worth or what they want to net, while disregarding true comps.
My point in the previous post was directed towards lowballing. IMO, lowballing has little to do with asking price but with true comps.
OK, we are pretty m,uch on the same page.
If you hire an agent and he/she gives you comps, USE THEM. Buyers who put their own dream numbers out there may as well not hire an agent... and then accept what they get.
It seems that in today's Buyer's market, some naive sellers considers any offer off their 'list' price as insulting....conversely, it seemed that in yesterday's Seller's market, any offer which wasn't at least at 'list' price was also considered an insult.
That 'lowball' offer today will be tomorrow's market adjustment...
An offer at an 'insulting' % off the list price is a lot better than all those 'other' offers of 0%....
Great answer.
"Low Ball" and "Insult Offer" are typically terms used by Sellers who are emotionally vested in tangential factors and cannot keep emotions from clouding their participation in a transaction.
Actually, there is no such thing as a "Low Ball Offer" or "Insult Offer."
There are only successfully negotiated sales terms and prices and failed negotiations. Nothing else is material.
Our house has been listed for about 5 weeks. The original price was $218,000, we dropped it after 3 weeks to $214,900. The feedback we are getting is that it is priced right.
I'm hoping to get between 205K - 210K, which is about 96-97% of the asking price. Am I being unrealistic? Should I set my goals lower?
We have a contract on a house we both love, with a contingency that we sell our house first. I know everyone hates these things, but we aren't brave enough to sell first and live in limbo. So we made a really good offer (as-is, at 98% asking price).
Just feeling antsy looking for any input.... I've been lurking around here for quite a while......
According to your target selling price 205K-210K. I would price it at 209K to attract more potential buyers then i firm it up on the lower end with my base floor of 205K.
To me a lowball offer should have nothing to do with the listing/asking price, since many times the listing/asking price has little to do with reality. To me a lowball offer is one that is significantlybelow what real comps say your house is worth.
Our house has been listed for about 5 weeks. The original price was $218,000, we dropped it after 3 weeks to $214,900. The feedback we are getting is that it is priced right.
I'm hoping to get between 205K - 210K, which is about 96-97% of the asking price. Am I being unrealistic? Should I set my goals lower?
We have a contract on a house we both love, with a contingency that we sell our house first. I know everyone hates these things, but we aren't brave enough to sell first and live in limbo. So we made a really good offer (as-is, at 98% asking price).
Just feeling antsy looking for any input.... I've been lurking around here for quite a while......
As a buyer in THIS market, I'd consider a lowball offer 30% or more below the asking price. This is based on the fact that most savvy investors won't pay more than 60% of the asking price and can sometimes get properties for as little as 20% on the dollar. All anyone needs to do to see what properties are selling for is to go to Trulia.com and click on the recent solds for properties like yours. If your house was built in the 70's you can even search for recently built homes built before 1980. On the other hand if your house is totally updated with new kitchens and baths flooring, etc, than it might be comparable with newer homes that have sold in your neighborhood.
Remember, unemployment rates are skyrocketing and 1/3 Americans are BEHIND on their mortgages! This isn't 2007 and the beginning of the buyer's market. If I was a seller and really wanted to sell my house I'd price it at the BOTTOM of all of my competition. I'd also make sure I'd made it comparable to newer construction homes with complete updates and renovations (which is what I did in 2007 to sell my house). People like move-in ready homes. They don't like to have to be inconvenienced redoing kitchens and baths. Otherwise, expect the 20% to 60% off the asking price low ball offers (which you'll get if you are lucky enough to get any offers) because the buyers will price in the inconvenience factor.
Having redone two homes with quality finishes and upgrades to get them in primo salable conditon for a buyers' market, I know first hand of what I speak.
i am currently in the market to buy a home. I continually run into properties that are priced 5-15% above what the seller paid in 2007-late 2008. In a great sellers market, this would be pushing it.
So, what does it mean. Are all of these folks so far under water that the home will inevitably end up as a short sale or foreclosure? Or, are these people completely delusional?
Either way, it hurts the market in general, it hurts legitimate sellers who trying to price to market and hurts buyers who want to buy, but would have to have just had a frontal lobotamy in order to make an offer.
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