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but i have a fairly low bar when it comes to lowball. usually i would say that any offer that is as much as 10% less is worthy of a counter. i.e., on a million dollar home, $900k or above. but an offer of $500k? i'd ignore it.
but i have a fairly low bar when it comes to lowball. usually i would say that any offer that is as much as 10% less is worthy of a counter. i.e., on a million dollar home, $900k or above. but an offer of $500k? i'd ignore it.
I don't think there's a magic percentage.
If a seller has priced the home 25% higher than sold comps in the neighborhood and the buyer comes in offering 30% below asking price? That's still a better offer to home value ratio than someone who offers you 10% below a house you priced in line with sold comps, yes?
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In my opinion, unless otherwise instructed by the seller, all offers (including low ball offers) should be presented. If the seller chooses to ignore them, that is their business.
Well, I just had one yesterday. 15% below list price.
Seller said "thanks, but no thanks", and we didn't formally counter.
I did call the agent and explain to him that we appreciate the offer, but the home is already the lowest priced in the area, and a good value at list price. I invited him and his buyer to submit a new offer based on current market activity and told him I'd be happy to share with him the comparable sales that I think are the closets matches.
The response, "so, the seller isn't willing to at least meet us half way?". No, he's not. Send a new higher offer and we'll go from there.
Well, I just had one yesterday. 15% below list price.
Seller said "thanks, but no thanks", and we didn't formally counter.
I did call the agent and explain to him that we appreciate the offer, but the home is already the lowest priced in the area, and a good value at list price. I invited him and his buyer to submit a new offer based on current market activity and told him I'd be happy to share with him the comparable sales that I think are the closets matches.
The response, "so, the seller isn't willing to at least meet us half way?". No, he's not. Send a new higher offer and we'll go from there.
Steve
Steve
Here comes the emotional factor we all talk about!
If I were that Buyer responding to seller/ listing agent message (and I currently am a Buyer and a recent Seller ) I would have reflected right back to seller- thx but no thx and move on. As a seller I would have kept the negotiations going with a counter. The perceived message from the Seller is arrogant to
me which would have been enough for me to stop negotiation or even reconsider a new offer.
Plenty of volume out there. Sellers loss.
Here comes the emotional factor we all talk about! If I were that Buyer responding to seller/ listing agent message (and I currently am a Buyer and a recent Seller ) I would have reflected right back to seller- thx but no thx and move on. As a seller I would have kept the negotiations going with a counter. The perceived message from the Seller is arrogant to
me which would have been enough for me to stop negotiation or even reconsider a new offer.
Plenty of volume out there. Sellers loss.
Move on to what? The next cheapest home in this high demand area is priced 13% higher, and is a junker, as are the ones even higher.
What you describe doing if you were the buyer - offering 15% below list price then being insulted by no counter - is to me a better example of the "emotional factor we all talk about" than the seller's response. He's not going to sell it that low, or even close to that low, and he simply informed the buyer of that fact. How is that "emotional"?
Annapolissailor, you say that there is "plenty of volume out there", but in this area, inventory is down, there are multiple offer situations regularly (depending on price range), and buyers who think it's still last year are losing out.
And Steve's right in his assessment of where the emotion appears to be in your case. From what Steve says, the seller simply knows that his house is already the best priced on the market and that the offer indicated a buyer who is not serious given the market here.
Here comes the emotional factor we all talk about!
If I were that Buyer responding to seller/ listing agent message (and I currently am a Buyer and a recent Seller ) I would have reflected right back to seller- thx but no thx and move on. As a seller I would have kept the negotiations going with a counter. The perceived message from the Seller is arrogant to
me which would have been enough for me to stop negotiation or even reconsider a new offer.
Plenty of volume out there. Sellers loss.
It's nothing emotional. As a seller Iv' done that very thing more than once. It just depends. Other times I have countered with the lowest price I will go and told them so.
Hi Austinsteve & TxHorselady - Both points well taken.
My reference to emotional factor was directed at both buyers and sellers more generally speaking.
Like politics, all real estate is local.
The region of our current home search as buyers is Coastal Maine (saltwater shorefront) where there is more than a sufficient supply of volume, hope that helps explain my specific situation and therefore perspective. Thanks for your valuable professional insights as we move forward in our home search.
This is a helpful thread topic for both buyer and sellers to gain a better understanding of the so-called low ball offer.
Well, I just had one yesterday. 15% below list price.
Seller said "thanks, but no thanks", and we didn't formally counter.
I did call the agent and explain to him that we appreciate the offer, but the home is already the lowest priced in the area, and a good value at list price. I invited him and his buyer to submit a new offer based on current market activity and told him I'd be happy to share with him the comparable sales that I think are the closets matches.
The response, "so, the seller isn't willing to at least meet us half way?". No, he's not. Send a new higher offer and we'll go from there.
Steve
Steve
Why not just counter?
Why feel insulted. It's a house, not someone's firstborn.
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