looking for non-offensive way to offer low on overpriced house???

[defiance]

Quick update - as expected, offer was rejected - they did counter, but at around 98% of original asking. As we investigated the sellers, we found that they're a couple, in the middle of a divorce, one of which is still living there. ... We figure the one still living there is looking to delay the sale, so we're just going to abandon this one.
Offer goes on in the down-the-block reasonable priced home tomorrow

[gbone]

Originally Posted by amyla

Its 2 million with the other on the block asking 1.5. We are not working with a realtor. It has been for sale for a year-it dropped its price 8 months ago (about) and has held at this price since. It is really not worthy of close to that much but the owner will call and ask what we thought and I don't know how to tell her what we are willing to pay without being offensive-IE: "you're house is beat up-kitchen and bathroom missing knobs, mica counters cracked too, etc.-so we will only offer you 1.3." What I just mentioned is true but how to you not offend someones pride in their home. They are not being realistic as sellers. I'm looking for a way to say it without being offensive-although my offer might be anyway.

Amyla, part of your issue can be addressed by using a realtor. Your emotions appear to be to involved when you are to concerned about how the seller will feel about your offer. A realtor can take emotions out of this and work with you to develop an offer that is based on what the market will bear. A realtor will use actual comps based on what has sold and on houses that are really comparable. The realtor will also be the person doing the actual negotiations. Other information that a realtor will use to help come up with an offer include tax records, sales history, upgrades in the house, age of major systems, overall condition of the house compared to the competition, etc. And not only that, but a realtor is going to provide you these services at no cost to you(since the seller pays) and risk their time and money to do this. Unless a person is very knowledgable about the buying & selling of real estate I would always recommend using a good realtor. I mention this only because you said you were not using a realtor. A good realtor will give you peace of mind that a transaction is being handled appropriately and with your best interestes in mind.

[amyla]

Thanks for the input. We have sold and bought a total of 5 houses on our own over the past 12 years. I did speak with the realor that works with the family. I mentioned about seeing the house again but would only be willing to pay 25% of asking price-wouldn't really go that high-. I asked if it was worth it and she chuckled and said -no, its not worth looking at again. Meanwhile the house is going to sit there. The owners have not moved on price since the early spring. They either don't really want to sell-they already own a bigger house in another town too, or they have a very unrealistic view of the market. In the best of markets 2million for this house is a longshot.

I will have a comp on the block by the end of Nov. A house is being sold from one neighbor to another in a private transaction. The house that is being sold is bigger and on more property so that will be something to compare it to-at least it will be the first on the block not an original owner. Also, the neighbor who is buying will be another good comp b/c it is about the same sq footage but a contemporary style home. They are still on the market-6 weeks so far-asking 1.5 so we will have more info by Dec when this becomes public. Luckily our only pressure is the pressure we put on ourselves.

[ep4property]

Originally Posted by amyla

We looked at a house that has been on the market-same price-for 9 months. There is another on the block that is asking 25% less (on for month so far) that is on more land, has landscaping, pool, deck,less wear and tear,etc. We like the more expensive style better but it does not compare in condition/newness/detail to other houses in the neighborhood that are in its price range. The house is almost empty, the people spend more time in their new house, so it's not as kept too. Any advice on how to offer much much lower than asking without being totally offensive?? There is no way they will see their asking price-or even close.

It depends where you are located. The market is not the same throughout the nation! If I have a customer thinking about a much lower offer, then terms have to be strong. If possible, no contigency of selling another property, significant down payment, quick closing (if it's empty or at seller's convenience), no issue of inspection items over a certain amount, cash deal...whatever terms that make a lower number appear stronger to the seller.

There are those occasions where the offer is so low that the seller is annoyed, insulted and says no, go away. In that case, your agent can always try to get the seller's agent to push for a counter offer. There are often times a middle ground that works for both sides but everyone has to do the dance first to feel good about the transaction.

Good luck!