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I am looking at a home listed on MLS for about $289,999 with taxes of $12,000ish per year. (A fixer-upper). It has been on the market for a little under a year.
My question is, what price should i offer? I know i am speaking very generally, and when i am ready i know to also ask my realestae rep...
But, generally speaking is 5-10% off list price about right? Has anyone seen any less?
I think on some houses you could even go so far as to offer 20% less. Last year when the market was much better a house down the block from my parents sold for 20% less than asking price, and it was completely redone.
I spoke to a few RE agents that explained people are making seriously low offers on homes but the homeowners, for the most part, aren't accepting them.
There is nothing wrong with making a lowball offer and going up from there. RE agents are pretty known for wanting more than than what you offer anyway! Any offer starts the negotiation process.
I spoke to a few RE agents that explained people are making seriously low offers on homes but the homeowners, for the most part, aren't accepting them.
There is nothing wrong with making a lowball offer and going up from there. RE agents are pretty known for wanting more than than what you offer anyway! Any offer starts the negotiation process.
I wouldn't say that any offer starts the negotiation process. I have often seen sellers who will not even give a counteroffer when an offer is way too low. They simply do not believe that the buyer is serious.
I wouldn't say that any offer starts the negotiation process. I have often seen sellers who will not even give a counteroffer when an offer is way too low. They simply do not believe that the buyer is serious.
Isn't it the RE agents job to qualify how serious a potential buyer is?
Is the buyer pre qualified for a mortgage?
What is the buyers circumstance; are they ready to move? Do they have to sell a house first, etc?
IMO, a smart buyer could throw it right back at the seller by asking how seriouis they are about selling the house.
My point remains, any offer is the starting point of the negotiation.
Yes, a real estate agent should pre-qualify a potential buyer. However, we are required by law to present any offer to the seller, regardless of how ridiculous it may be. As for any offer being the starting point of negotiation, an extreme low ball can be both the starting and ending point if the seller refuses to counter offer.
I read somewhere on this forum "If you aren't embarrassed of your offer it isn't low enough"
I think this holds true - a lot of REA have no problem saying, spend another $20k so they know you are serious - I say BS - I AM serious! That is why I am preapproved! It is very easy to spend money when it isn't yours
I think the sellers take this too emotionally, and so do some real estate agents. I mean a buyer low balling an offer is hurting the sellers and the REAs egos big time.... so its just a knee jerk reaction.
I say its purely business, if you don't like the offer, say no ! whats the big deal about each and every offer to be "appropriate" ? And I hate it when someone thinks "Will this insult the seller ?" .... a whole load of BS !! Well, the sellers definitely had fun when it was a sellers market, when they would just sit back and watch the buyers fight it out....
As a buyer you have to just let the seller know that here is the offer I can put forward and that I'm seriously looking out for other houses and may put a few other offers too, so the ball is in your court....
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Any offer starts the negotiation process.
