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Isn't there an old saying somewhere about "assume"...... ? The only thing I assume about a seller (99% of the time) is that he/she has priced in some room for negotiation....as a buyer, it's my job to find it.
Obviously there are some markets where a 75% first offer wouldn't produce intended results....but I have never played in those markets. Common sense plays a big part in being successful with negotiations.
Regards
Gemstone1
Perhaps in other locations and markets. That is not the case here. Most homes are selling for OVER the asking price. Obviously there are less-desirable areas and homes where bargains can be found. Clearly we are talking about two entirely different markets.
Yes. Joking. There would have been NO response from us. None. Not in our flaming hot market.
Not every market is flaming hot and not every flaming hot market is always flaming hot.
I agree with you in that if I was listing a property today at a price the realtor felt was good and was backed up by comps, I'd laugh at any lowball offers too. But if someone came in with an offer that was a few % below asking and there were no other offers on the table, I'd be inclined to counter offer and settle for 1 to 1.5% below list just to get the deal done.
There is a difference between lowball offers and offers slightly below list. Some posters on here seem to think any offer below list is lowball but that's not true. There's plenty of history and it's also quite the norm in normal (ie not hot) years/markets for people to offer slightly below list and come to agreement with the homeowner on a final price. It's fascinating to see how short memories are - just a year ago it was not a hot market in most of the country and as I pointed out above, in a major metro area it was very normal for properties to sell slightly below list, indeed, that was most of the sales that the pattern was clear: you listed with the expectation that you would sell slightly below it, and if you were lucky (maybe 20%) you got the asking price.
Even in this very hot market there are still price cuts. If there are price cuts, then that itself implies it's not "unreasonable" to offer slightly lower than list if you think the house is slightly overpriced. I can look at the current listings in my hot markets and see a number of perhaps unrealistic prices, such as estate sales where the sellers think their deceased mother's dated house with 1970s kitchens/bathrooms is worth the same as the fully rebuilt house next door. Those houses always sit for a bit, have a price cut or two, and eventually sell for less than the final asking price (but still at a very fair price for the house).
However, offering substantially below list for a house/market for which it would be utterly unrealistic is just wasting everyone's time and yes, offensive in a sense.
Not every market is flaming hot and not every flaming hot market is always flaming hot.
I agree with you in that if I was listing a property today at a price the realtor felt was good and was backed up by comps, I'd laugh at any lowball offers too. But if someone came in with an offer that was a few % below asking and there were no other offers on the table, I'd be inclined to counter offer and settle for 1 to 1.5% below list just to get the deal done.
There is a difference between lowball offers and offers slightly below list. Some posters on here seem to think any offer below list is lowball but that's not true. There's plenty of history and it's also quite the norm in normal (ie not hot) years/markets for people to offer slightly below list and come to agreement with the homeowner on a final price. It's fascinating to see how short memories are - just a year ago it was not a hot market in most of the country and as I pointed out above, in a major metro area it was very normal for properties to sell slightly below list, indeed, that was most of the sales that the pattern was clear: you listed with the expectation that you would sell slightly below it, and if you were lucky (maybe 20%) you got the asking price.
Even in this very hot market there are still price cuts. If there are price cuts, then that itself implies it's not "unreasonable" to offer slightly lower than list if you think the house is slightly overpriced. I can look at the current listings in my hot markets and see a number of perhaps unrealistic prices, such as estate sales where the sellers think their deceased mother's dated house with 1970s kitchens/bathrooms is worth the same as the fully rebuilt house next door. Those houses always sit for a bit, have a price cut or two, and eventually sell for less than the final asking price (but still at a very fair price for the house).
However, offering substantially below list for a house/market for which it would be utterly unrealistic is just wasting everyone's time and yes, offensive in a sense.
Never offensive. Too much emotion there. Always work the offer. Always be the one who stays at the table. Always be the one looking for the "Yes."
Ego and emotion are destructive negotiating factors.
Recently sold a listing to a buyer who closed at 14% over her original "best price," which was about 20% under list price.
If I had taken offense, or sellers had taken offense, or we had treated it as a joke, the sale may not have happened.
Our daughter recently closed on a condo she agreed to pay full asking price in her initial offer. Her own realtor told her after the allotted time frame for their response that there were 3 other offers that were higher than hers at over asking price. She wanted our daughter to raise her offer. She did not and then her offer was accepted. We don’t believe there were any other higher offers and felt her realtor was misleading...she certainly wasn’t helpful during their entire contract.
I’d like more space, but I don’t have to move. I’ll move for what I consider a good deal & am watching. If the real estate market worked differently I’d just make offers & see what happens. But my realtor is a family friend, and realtors do a lot for our schools. I am hoping that I can respect the system, work within it, and find value for my money.
Not every market is flaming hot and not every flaming hot market is always flaming hot.
I agree with you in that if I was listing a property today at a price the realtor felt was good and was backed up by comps, I'd laugh at any lowball offers too. But if someone came in with an offer that was a few % below asking and there were no other offers on the table, I'd be inclined to counter offer and settle for 1 to 1.5% below list just to get the deal done.
There is a difference between lowball offers and offers slightly below list. Some posters on here seem to think any offer below list is lowball but that's not true. There's plenty of history and it's also quite the norm in normal (ie not hot) years/markets for people to offer slightly below list and come to agreement with the homeowner on a final price. It's fascinating to see how short memories are - just a year ago it was not a hot market in most of the country and as I pointed out above, in a major metro area it was very normal for properties to sell slightly below list, indeed, that was most of the sales that the pattern was clear: you listed with the expectation that you would sell slightly below it, and if you were lucky (maybe 20%) you got the asking price.
Even in this very hot market there are still price cuts. If there are price cuts, then that itself implies it's not "unreasonable" to offer slightly lower than list if you think the house is slightly overpriced. I can look at the current listings in my hot markets and see a number of perhaps unrealistic prices, such as estate sales where the sellers think their deceased mother's dated house with 1970s kitchens/bathrooms is worth the same as the fully rebuilt house next door. Those houses always sit for a bit, have a price cut or two, and eventually sell for less than the final asking price (but still at a very fair price for the house).
However, offering substantially below list for a house/market for which it would be utterly unrealistic is just wasting everyone's time and yes, offensive in a sense.
Obviously, markets differ. I was speaking of my own experience and my local market. We placed our parents house up for sale, AS IS. No updates, no repairs. 20 years old and all they did was add some hardwood floors a few years back.
To me a low-ball offer would be 20% less than the listed. And believe it or not sometimes that low-ball offer will clinch the sale. It can depend on the person who is offering it and how the property is to be used or taken care of once it is sold.
All listings have a loss factor built in. You go in at the high end and settle for a lower offer. Conversely when you are buying you offer lower than the listed and commence haggling.
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The only thing I assume about a seller (99% of the time) is that he/she has priced in some room for negotiation....as a buyer, it's my job to find it. 
