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I have never had a lowball offer, but I did have a buyer who presented a list of a whole page, single spaced, of things they wanted repaired or replaced. We "countered" with none.
I have never had a lowball offer, but I did have a buyer who presented a list of a whole page, single spaced, of things they wanted repaired or replaced. We "countered" with none.
Did they still buy the house? Iv' had it happen before did the same thing and they bought it as is.
Some sellers persist with the belief that they will get more by asking more.
Some buyers persist with the belief a property is worth what they can afford.
Both are mistaken.
Someone tell me again, why agency is obsolete ( roll eyes) .
Houses are worth what the seller will sell for and what the buyer will pay. I find that to be a rather simple truth.
It doesn't even matter what they will appraise for, if the buyer has cash to make up the difference.
I realize you can look at solid comps and try to convince a buyer or a seller of what a house SHOULD be worth, but in the end? It's about what the seller will take and what the buyer is willing to pay.
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Houses are worth what the seller will sell for and what the buyer will pay. I find that to be a rather simple truth.
It doesn't even matter what they will appraise for, if the buyer has cash to make up the difference.
I realize you can look at solid comps and try to convince a buyer or a seller of what a house SHOULD be worth, but in the end? It's about what the seller will take and what the buyer is willing to pay.
Thank you thank you thank you - agree 100%, however as a Buyer it makes it very difficult to narrow down and categorize my selections for my buyer agent when a seller has listed at an unrealistically high list price (this appears to be a common phenomenon in Coastal Maine, esp. among long owning sellers or perhaps under water) and there are no to few current past sale comps in many of these small rural towns).
Theoretically, an over-pricing seller could be knocked off Buyer's advanced search purely because their list price is way over (20%) Buyer's bottom line price the Buyer is willing to pay. Yes, I am a micro-managing Buyer (former RE agent) myself. All I do is send my showings list to the agent, beyond scheduling the showings her level of effort is minimal during the initial process. I just feel I know better what we're looking for (criteria) than she does) but am open if she sends me additional recommendations.
Every offer has to be presented to the sellers regardless of the price. Even if a lower offer comes in the seller has the right to reject that offer, or counter it with a better one. But never should an agent not present an offer.
All offers need to be presented to the seller regardless of the price. The seller has the right to reject an offer or counter it. Even if you are a dual agent (which you have to disclose) you still present all offers. Your first client is your seller, if a buyer comes along that doesnt have an agent you can still represent them but your job is to sell the home and work in the best interest of both seller and buyer.
As a buyer's agent I never present an offer and describe it as "lowball". That term is pretty much exclusive to the selling side. You might be surprised how often sellers don't counter because they are "insulted" by an offer they consider "lowball" even though their asking price is more out of line than the offer. I was wondering how listing agents handle their sellers when they get huffy over an offer and are reluctant to counter.
I'm not the type of seller that can be "handled" by an agent, nor am I the type of seller that would "overprice" my house and then get "huffy". There's a spot on the listing agreement that talks about verbal offers and allows a seller to specify that Even written offers below $xx go straight to the trash. I don't know if I've ever received a "lowball" offer because I instructed my agent to trash them without wasting my time.
My last house sold in 15 days at full price - in a declining market (Detroit), so don't be so quick to assume that every seller is a neophyte.
I think it would behoove someone to counter, as some people think it's 'lowball' when in reality it reflect the true market value of a home.
For example, we pretty much got yelled at for offering $645k for a home that was listed at $750k. Well, the reality was that the home was nowhere near worth $750k. And we got tired of the ranting and raving of the lunatic seller, so we walked away. (Ironically, we wound up buying an even more expensive home - but it was totally worth it. And we didn't 'lowball' those people. They had their home priced about right.) In the end, guess what that guy wound up re-listing and selling his home for? Yeah. Exactly.
So maybe sometimes 'lowball' is just a reality check.
I agree with most of the posters here --- A "lowball offer" (whatever that means) is only an opening negotiation!
Any seller with an ounce of common sense has already built some 'wiggle room' into the price and everyone knows it; particularly in today's market! The best way to 'not sell' a property is to let emotion get in the way of business. At a bare minimum, ask the 'lowball offerer' what they really hope to buy the house for' ... everyone with two ounces of sense also knows that the first offer is rarely, if ever, the final offer.
If the seller has no room to move and the buyer is similarly stuck, the transaction is really only that of a 'tire kicker' and a 'market tester' -- Time to move on; AFTER reaching that conclusion, but, not before fully 'testing the waters' on both sides.
I think it may be a combination of issues. Unrealistic sellers and listing agents who can't sell.. or reason with their clients.
Scenario: comps sold in subdivision, all 4 br, 3.5 ba. All have requisite whirlpool bath in master, two car garages, hardwoods, granite/stainless kitchens formal dining room. This is a small subdivision with all custom homes. All different sized homes. lots range from .35 to .41.
Sold comps in past 3 months: $142/sqft, $152/sqft, $155/sqft/$174/sgft.
Other homes for sale: $152/sqft/$155sqft/ $155sqft/$227sqft* (*has pool...big deal I know-ha)
Subject house is 4br/3.5ba. Single car garage, no whirlpool tub in master - only subway tiled corner ordinary shower, no formal dining. Has hardwoods, granite/stainless kitchen. Listed at $587,000 3369 sq ft. .35 acre lot.
Offered $512,000- just short of $152sqft. Buying agent and I both agreed good place to start.
Listing agent and seller (supposedly) called it a lowball. We sent in sold comps and pointed out home did not have two car garage, formal dining nor not even a regular tub in master as did the sold comps... and the competition for sale in the market. Seller refused to counter.
Of note, this home has been on the market off and on for the past 3 years. Average DOM is 77 for the market. Home has been listed this go-round 117 days.
We know they NEED to sell. Heck, the whole town knows they need to sell (hubby since losing his job 3 years ago really hasn't found suitable employment and family can barely make ends meet just on wife's salary).
I'm really so disgusted now with the whole process. I'm a cash buyer, can offer flexible close and my only contingency is inspection. And my offer was considered "low ball".
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