Real estate question about making an offer on a "stale" property (agent, sales)

[Annemieke Roell]

1. Do not put any value in Zillow. It is "trash in, trash out"

2. In your position I would either contact a Realtor to represent you. He/she should be able to come up with a good price or hire an appraiser to give you an estimated market value.

[Hollytree]

Zillow is valuable in that it shows sold prices and a record of price reductions for a listing as well as DOM.

[svband76]

I have read somewhere that a reasonable lowball offer on a property still on the market after 90 days is 80% of the asking price. So on a $500,000 home that would be a $400,000 offer.

[MikeJaquish]

Originally Posted by svband76

I have read somewhere that a reasonable lowball offer on a property still on the market after 90 days is 80% of the asking price. So on a $500,000 home that would be a $400,000 offer.

OK.
Let us know how that works out for you!

[oceangaia]

Originally Posted by svband76

I have read somewhere that a reasonable lowball offer on a property still on the market after 90 days is 80% of the asking price. So on a $500,000 home that would be a $400,000 offer.

Following a formula like that is anything but reasonable.

[GotHereQuickAsICould]

Originally Posted by svband76

I have read somewhere that a reasonable lowball offer on a property still on the market after 90 days is 80% of the asking price. So on a $500,000 home that would be a $400,000 offer.

I don't know about that.

What if the asking price is $1,000,000 but the comps are all in the $400,000 range?

Why in the world would you offer $800,000?

[svband76]

Originally Posted by GotHereQuickAsICould

I don't know about that.

What if the asking price is $1,000,000 but the comps are all in the $400,000 range?

Why in the world would you offer $800,000?

It's not a one size fits all idea. But certainly if a house has had 5 people look at it over 1 year of being listed with an agent, I'd say 80% of asking price is more than doable.

[TechGromit]

Originally Posted by yellowanchor

Anyway, there is an old house I've been eyeing for a while. It has been on the market for about three months (was pending for a bit and then back on the market since financing fell through).

I'd make an offer for what you think it's worth. I recall years ago, I put in a offer on a house at 360k, and the seller rejected the offer, they wanted 400k. I didn't counter offer. The house sat on the market for 6 months and eventually sold for.... 360k to someone else. If they reject what you think is a fair price, move on to something else. Don't get pressured into bidding more than your comfortable with.

[MortonR]

Originally Posted by TechGromit

I'd make an offer for what you think it's worth. I recall years ago, I put in a offer on a house at 360k, and the seller rejected the offer, they wanted 400k. I didn't counter offer. The house sat on the market for 6 months and eventually sold for.... 360k to someone else. If they reject what you think is a fair price, move on to something else. Don't get pressured into bidding more than your comfortable with.

Exactly. What's most important in any negotiation is to have a set price (floor or ceiling) and be willing to walk away. If the seller is motivated, they'll bite or at least counter, which gives you an idea if your offer is realistic to them or not.

Willingness to walk away is the most powerful tool you have as a buyer.

RM

[tolovefromANFIELD]

Originally Posted by Brandon Hoffman

Also, the owner probably isn't motivated so they aren't likely to take a low offer. If they were motivated to sell it wouldn't have sat on the market for 3 months already.

Pure logical fallacy. In my experience, every day that it goes by, sellers like this get more motivated.