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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.
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.
Just be sure you are being honest. Look at the comps, look at what you really feel the house is worth. If you try to push the envelope "just because", or feel that you have a strong advantage you may end up annoying the sellers enough that they will not play ball. It may be that they won't accept, but then will reconsider later.
And be willing to walk away if you don't feel comfortable with the price.
Do you have a realtor? The way to make a decent offer is to look at the comps like AnthonyB said,don't make a really low ball offer,the seller wil not come back with a counter,give some room for negotiation.Your realtor should be able to do that.
The simple way to do it is mention you have interest in a house a few blocks away (note the address) which has more amenities than theirs does, and it's priced 25% less. Yes it may offend, but it accomplishes two things. First, it's a simple slap in the face saying wake up, you're drunk if you think you can get that much. Second, it lets you know if they are the type of sellers who live in their own little bubble and will never deal.
It's interesting how much this 25-30% figure is bandied about in these threads. I keep seeing "lower your price 30% if you want to sell" or like this thread which is basically asking how do I offer 25% less than list without ticking off the seller.
I don't think most people are realizing that 25% equates to a whole lot of money, it's easy to say it that way but 25% means way different things depending on the price of the house doesn't it? I wish y'all would get away from the percentage game and talk hard numbers for the following reason. If you're talking a $400k house you're asking the seller to take $100k right off the top, or if it's a $150k house your asking for a $37.5k discount, way different things.
If someone came at me with a request for $100k off I would be ticked at first, I then would try to see it from their side (if there was justification given) and my third reaction would either be that we are so far apart there's no reason to counter or to counter with a few thousand. Either way I would be on guard.
That being said, I find it hard (but not impossible) to believe that in todays market that an agent would go for pricing a house $100k more than the comps would support unless forced to.
IMO you can't comp to what is for sale down the street until it's sold and even then you would need to know more about both houses. There may be a good reason that it's less or there may be a good reason that the newer one is more. Bottom line is you need more info. On the more expensive house I would see how much they paid if you can, or what the current mortgage is, that will tell you alot.
If it comes down to the comps just don't support the price then ask, all they can say is no right?
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- Why should you care if you "tick" off a seller w/your offer? Did sellers care about "ticking" off buyers up till last year when things were great for them??
Have you checked the history of the home w/the town? Have they made a tidy profit? Did they buy at the peak? Give us the history of the home and then we can provide a better answer.
I say this all the time. Business is business. You are not going to be "freinds" w/the seller after you buy it, so try to get it for as low as you can. If the sellers are desperate enough, their probably starving for an offer and are willing to talk to anyone who has an interest.
You can always go higher but you can never go lower. Opposite is true for sellers obv.
If you are too emotionally worried about buying for "too low" , then your spouse or someone else should be taking the lead.
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, you don't have to feel bad about making a low offer, everyones doing it these days. I would let them know your exact concerns, the sellers most likely know it already as they have moved on to a new home. Putting it nicely will help your cause of narrowing the sales price down to the price you would like to be at. If not, it wasn't meant to be.
You have to know what the comps are. Homes that have not sold are not comps. Only homes that have sold in the last 6 months should be used for comparison purposes. And sometimes, there are very few.
A low offer is never going to be greeted with joy, no matter how you couch it. Just make the offer and hold your breath. Be ready to negotiate or walk away. Is this a fsbo or do they have a Realtor?
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