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Iv'e found that by offering a low low price, I'll get a counter offer which will tell me what the buyers are really wanting to settle for. Many times I'll counter offer the counter offer and get a better deal. Happened many times.
At least when you make an offer the seller knows someone is interested in their property. You would be surprised at what motivates a seller, especially in today's volatile market, to accept your low offer. If someone is about to go into foreclosure, they'l do anything to save their butt and credit.
In AZ all offers are required to be submitted to a seller, by the listing agent, no matter how ridiculous they may seem to be. Failure to do so is malfeasance.
Intownhomes... exactly what I was thinking. If the seller is in fact a REA , go ahead and make the offer at what you want. You direct your agent, and she should be ok writing up your offer. The other side will probably negotiate with you, and try to keep the emotional out of it (hopefully). Keep us posted.
To answer to Bill Keegan, I hinted to my agent that I wondered if an offer of $185 would be okay, rather than just saying it, by saying something stupid, but openly admitting that it was stupid when I said it.... I told her that I had been looking on those "garbage" websites like zillow, trulia, etc., and that they suggested the house should be valued between $181 and $189. She responded that those websites are "garbage in, garbage out," and said $181 was ridiculous. So, no, I didn't say "how about $185?" but got the impression that this was too low by her later statement, "I wonder if they would take $195 and be done with it?"
My belief is that if we suggest $195, they'll counter with $200 or $205, and I won't pay that.
I don't want to have the most expensive--and unusual--house on the street. Not today.
To answer to Bill Keegan, I hinted to my agent that I wondered if an offer of $185 would be okay, rather than just saying it, by saying something stupid, but openly admitting that it was stupid when I said it.... I told her that I had been looking on those "garbage" websites like zillow, trulia, etc., and that they suggested the house should be valued between $181 and $189. She responded that those websites are "garbage in, garbage out," and said $181 was ridiculous. So, no, I didn't say "how about $185?" but got the impression that this was too low by her later statement, "I wonder if they would take $195 and be done with it?"
My belief is that if we suggest $195, they'll counter with $200 or $205, and I won't pay that.
I don't want to have the most expensive--and unusual--house on the street. Not today.
I believe she was telling you that $181k is a ridiculous valuation for that house, not that $181k is a ridiculous offer. And even if she thought it was a very lowball offer, she'd still write it up. She'll give you her advice on pricing, but it's your offer, not hers, so she'll write it up at whatever number you're comfortable with.
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My belief is that if we suggest $195, they'll counter with $200 or $205, and I won't pay that.
I don't want to have the most expensive--and unusual--house on the street. Not today.
OK. I see how you came to believe what her feelings are. I agree.
However.
Do not let her "feelings" dissuade you from making the offer you want to make. If she can show you empirical evidence that the lower number is ridiculous, then you might reconsider. Short of that, make the offer you want to make. Make your offer as strong & positive as you can, with a quick closing, strong mortgage approval, significant downpayment, whatever you can do. Show them that taking a few less dollars is going to get them a solid sure buyer. And if you doubt her willingness or ability to present your offer in strong positive manner, without suggesting you have more rtoom to negotiate up, ask her to sit with you & work out the presentation & negotiating strategy she will use. Some real estate agents, and even some Realtors, will be offended by the notion of rehearsing their pitch in front of you, but I do it all the time, to show my buyer clients how I will present their offer. Also, working it out & saying it out loud to someone might help to wash away some of the apprehension she feels about presenting what she feels is a low offer.
There are agents that represent the seller and then there are agents who represent the buyer. The selling agent tries to get the best offer/deal for their client. The buyers agent, especially, has to submit any offer the buyer wants to offer.
In my case the seller's house was listed at $429.000, I offered $249,000. My agent said I was nuts that no one would consider that. I told him to submit it. He did, and they countered at $349,000. I then recountered at $269,000 and they countered at $319,000, and eventually 24 hours later we settled at $289,000.
Their incentives were 2 week closing, cash sale, and as is condition. Afterwards we found out they needed cash to move into an assisted living home and that they paid only $75,000 years ago so the cash profit was a huge incentive to sell without a long listing hassle. You need to find out what motivates a seller to sell. Lots of personal problems out there today, divorce, foreclosures, credit crunch, financial, etc etc.
I've done several sales this way over the past years and have been successful. A sale is only worth what someone wants to pay for it. Walk away if you're not comfortable with the deal or the way it's being handled. There are many many good deals to be had. Sellers will always try to get a superficial hyped up price, but when it comes to reality things start to pop.
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