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Did I see where you had a Redfin agent? Around here they are notorious about inexperience and not knowing the market.
Each time I have bought or sold a property, the first step was to find the right realtor. One who knew the local market, who had good experience, who could offer good advice and who I was comfortable working with. Trying to cut corners on such a big transaction is a recipe for problems. The right agent will help save money, time and hassle.
A word for sellers too. There is a cost in holding out for the 'right price'. Cost of mortgage interest, cost of capital, property tax, maintenance, etc.. Holding out for that extra $20k may not be such a great deal as it looks.
And for buyers. Figure out what the property is worth in the market, figure out what you can afford and make your best offer. Let your realtor guide you in this. That is their job and what they earn their commission for. There may be some negotiation but you want to limit that and get to the deal. If not then you have to be willing to walk away. There is no shame in walking away and there are usually plenty more properties on the market
I'm astonished how many people in this thread say they would react emotionally to a low offer. If you don't like an offer just say no and ask the buyer to come back with another one. Saying no doesn't cost anything and if the buyer comes back with an acceptable one then you win.
I'm selling a home now that I haven't lived in for about 2 years but have owned for 12 years. I renovated it top to bottom and was going to rent it. The house came out so nice and the market took off so I decided to list it. Before I listed it I had it appraised by a licensed appraiser. The Appraisal came in at $300,000. The offers I have received have been down right insulting. $275,000, $285,000. These people think it's a game. I didn't even bother countering the low ones. I told the agent they have to come up significantly and use the appraisal as leverage. I wound up getting asking price.
"Hurt feelings" in response to an offer over 85% of asking, with usual contingencies generally means "bad stuff here." So, be prepared to walk.
If this house has remained on the market for months, yet...homes of similar type, in that area are getting snapped up, then it is probably overpriced, and either the sellers, or their seller agent, or both simply don't care. They have a selling price in mind and that's it, ridiculous or not. It happens. Usually a bad seller agent but often, just the sellers.
Then, it could be your buyer agent. The buyer agent earns his keep by getting a sold sign hung out - just like the seller. Those two actually discuss things like what the property is really worth (and, btw, you'll never be informed of what they discuss). A good buyer agent has the ability and know-how to deal with a seller agent who won't budge. He brings REASONS FOR THE "lowball" offer to the seller agent. That's what he's there for! So, it is of utmost importance that YOU find a good buyer agent, and once you have, outline to the buyer agent, clearly, using comps, etc., why the low offer. Very important!
As a rule of thumb, a property that sits on the market for a substantially longer period than its "sold" comps sat means there's a problem with that asking price or what the seller expects to get. This could be due to a number of things - including too few BR's, too little sq footage, too much dated stuff, a bad property of sorts (location, etc), not consistent with nearby properties - lots of things - and some, that may not mean much to you, but do mean a lot to a typical buyer in that area. In those cases you especially need a buyer agent that can point that out. Otherwise, you have a property that'll be listed and listed, and listed. And, btw, pay too much for it, you'll get dinged if you ever decide to move. 6% is 6%! Always remember that.
Last edited by TwinbrookNine; 09-04-2017 at 09:04 PM..
I'm selling a home now that I haven't lived in for about 2 years but have owned for 12 years. I renovated it top to bottom and was going to rent it. The house came out so nice and the market took off so I decided to list it. Before I listed it I had it appraised by a licensed appraiser. The Appraisal came in at $300,000. The offers I have received have been down right insulting. $275,000, $285,000. These people think it's a game. I didn't even bother countering the low ones. I told the agent they have to come up significantly and use the appraisal as leverage. I wound up getting asking price.
95% was insulting to you? Maybe you should stay out of the real estate business if you are so easily offended. Many people would be happy with 95% of list.
The 275K was low, but still almost 92%, which is an offer worth countering.
You don't have to say no as a seller and counter. While that would be "polite", a person doesn't have to do it. They can simply not answer, which is the equivalent of a "no". It has nothing to do with hurt feelings. It's a business transaction. If a seller has done their homework and they are not outrageously priced, it's their prerogative. Also I don't believe that the OP stated that the house was in subpar condition, in a bad location, etc. Sure, it sat for some time but in the higher price points (if you're not in CA or NYC) that isn't unusual. The OP fired off a dime firecracker with the hope that the seller comes back with something lower and then they can fire off a quarter firecracker. Also, you shouldn't be asking your questions OP. That's your realtor's job. That realtor needs to be top shelf in negotiations and he should know what to do and how to feel out a seller. Why are you needing instructions on how to negotiate when that is his/her job? You tell him that all you can do is 470k and he should guide you at that point. Or tell you you're barking up the wrong tree and look at houses in the sub $450k range.
I mentioned playing games because he intentionally bid very low to go back and forth repeated times. This isn't an auction. It isn't a distressed property. The market isn't in crisis. Going in very low with the hope of multiple counters is going to do nothing but annoy a seller. There are very few buyer's markets in the country at the moment. Seller's aren't going to do it. They don't have to and they know it.
He didn't bid very low, he bid 88% of the asking price.
You need to calm down and stop taking the normal process of real estate negotiations, so personal.
95% was insulting to you? Maybe you should stay out of the real estate business if you are so easily offended. Many people would be happy with 95% of list.
The 275K was low, but still almost 92%, which is an offer worth countering.
please step back and take a breath
No one needs to get out of the real estate business, nor do you need to be ordering anyone to do so.
My first offer of $44000 (88% of list price) for a house listed at $500000 was rejected by the seller. No counter or a request for us to put another offer. Seller has no other offer, house is vacant and been in the market for several months. Listing agent said that they "were deeply insulted with the offer"
We like the house and were expecting a counter to get started on the the negotiations. Very disappointed that we didn't get a counter from the seller. Comps are being sold at around 96-97% of the listing price. We are ready to go upto $475000 (95% of listing).
What tactic can I use as my next step? I could do another offer at $460000 and see if i can get a counter and add $5k-10k in increments. Or I could go in with a final and best offer with no room for negotiation.
Also, how soon should I do a second offer? Should I wait for a week or take action immediately.
Any thoughts are really appreciated.
Good for you. We just put an offer of $220K on a house which is listed at 250K.
We just got back from looking at it. It's beautiful and in a touristy town which is perfect for AIRB&B.
We were suppose to know last night but beings it's a holiday, should know tomorrow.
Best of luck to you
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