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Indeed, there are no more free lunches ..for RE agents!. I won't use your appraiser buddy, I'll get my own. And regardless of what the RE agent wants, I'm sending my offer directly to the seller so if they like the price the agent can go suck chrome for all I care. Datapoints?. I live in the REAL world!.
Well, if the property is listed with a broker, the broker WILL be involved regardless of your ... "feelings".
Well, the main question of the thread was "How low have you been able to go with your lowball offers?"
I don't recall reading about any successes with lowballs. Of course this thread has gone on forever so if there were any, I've likely to have forgotten at this point.
What I'm reading is that the posters have been lowballing are having no luck with it. So thats telling me something. It should be telling buyers something, too, but apparantly it's not.
Of course! We didn't observe any lowballs in this thread, so how do we know lowballs even exist?
Wait, here's one:
I saw a house listed for $169,900, which sold for $129,000 last week, 24% below asking.
And of course, there are numerous others that mysteriously dropped 10-15%, *just* before they sell for the exact amount of the new listing. Nope.. no agents gaming the system there..
Observations about this thread..first, hasn't it totally run it's course? who cares anymore, we are all out for ourselves with real estate. I don't give a flying flip if someone got a lowball or now..
Speaking of balls...seems to be a lot of sex talk going on...i've know folks to get infractions for less..
Observations about this thread..first, hasn't it totally run it's course? who cares anymore, we are all out for ourselves with real estate. I don't give a flying flip if someone got a lowball or now..
Speaking of balls...seems to be a lot of sex talk going on...i've know folks to get infractions for less..
Later
Agreed,
And is it just me or does anyone else see that this !&!@&$ comparison to sex and prostitution sum up EXACTLY what little he knows about real estate? Additionally, he actually believes this "co-worker" of his. Unless he's with him EVERY time he actually lands a female stupid enough to comply with this guy's stats, sounds like someone "talking about" something they wish were happening. You know what they say about someone who talks about how much they are getting- means they aren't getting any at all. So I guess it does relate to this "mentality" where real estate is concerned. He keeps "talking" about low ball offers, but clearly hasn't found any successfully, if he's even attempted them at all.
Well like was metioned by the moderator....we should keep to the topic or it will get deleted. The other commenter on here was trying to make the comparision to real estate and I don't think it has anything to do with real estate. So back to the topic, if you want to offer something lower on a home, because it's about 40,000 over what you can pay and you wait and it comes down to that a couple months later and then you offer......that wouldn't be a lowball offer I don't think....and that's what we did in our situation.
What kinds of lowball offers have buyers been successful with? Has anyone been able to buy for less than 75% of the asking price? How often have your lowball offers been turned down?
Lowballing is a style of negotiation that I personally don't do nor do I accept lowball offers, ever. I've made counter offers (to buyers) of 500$ off the list price when people lowball... my way of saying "up yours".
To me, when someone lowballs it means that they really don't want the property (especially if the comps don't support it) and they are only interested in the property if they can practically steal it and they are wasting my time. It's kind of like an owner who insist on listing a house for too much - maybe they really don't want to sell it (but they are wasting people's time, like their agent) and odds are no one will buy it. If that's what people want to do then, good luck. To each their own.
To me, when someone lowballs it means that they really don't want the property (especially if the comps don't support it) and they are only interested in the property if they can practically steal it and they are wasting my time. It's kind of like an owner who insist on listing a house for too much - maybe they really don't want to sell it (but they are wasting people's time, like their agent) and odds are no one will buy it. If that's what people want to do then, good luck. To each their own.
There are homes here in SoCal -where I'm stationed- on the market for $550K asking price. They don't sell. Eventually when the foreclosure process kicks later on during the final stages these same homes will sell (if they sell at all) for $255K at auction (actual real life example). And that's today because the way things are going these homes will sell for even less in another 2 months or so.
Now if I approach the irrational person who insists on asking for top dollar (basically what they paid themselves) with any offer below what they paid they'll consider it a 'lowball' offer and get all offended.
I hate dealing with idiots so I forego making any offers on any home until it goes into foreclosure, then I 'lowball' the bank which isn't emotionally attached to the home and sees my offer as simply a business proposition: take it or leave it.
The problem is I sense that REO's are not selling either because banks are still holding out for top dollar too and will continue doing so as long as they can hope for some kind of government bailout to help mitigate their losses. Once THAT hope is gome I think home prices will TANK (even more!).
The problem is I sense that REO's are not selling either because banks are still holding out for top dollar too and will continue doing so as long as they can hope for some kind of government bailout to help mitigate their losses. Once THAT hope is gome I think home prices will TANK (even more!).
A good reason they are not selling is that a ton of them are crap. Heavy density in fringe neigborhoods, all the appliances taken, pipes and anything of value stripped by the previous occupants. The longer the they stay unsold, the more they degrade or become rental units with no pride in ownership. Anyone who hasn't observed this hasn't really been looking.
A good reason they are not selling is that a ton of them are crap. Heavy density in fringe neigborhoods, all the appliances taken, pipes and anything of value stripped by the previous occupants. The longer the they stay unsold, the more they degrade or become rental units with no pride in ownership. Anyone who hasn't observed this hasn't really been looking.
Quote:
StaffSgt -There are homes here in SoCal -where I'm stationed- on the market for $550K asking price. They don't sell. Eventually when the foreclosure process kicks later on during the final stages these same homes will sell (if they sell at all) for $255K at auction (actual real life example). And that's today because the way things are going these homes will sell for even less in another 2 months or so.
Now if I approach the irrational person who insists on asking for top dollar (basically what they paid themselves) with any offer below what they paid they'll consider it a 'lowball' offer and get all offended.
I hate dealing with idiots so I forego making any offers on any home until it goes into foreclosure, then I 'lowball' the bank which isn't emotionally attached to the home and sees my offer as simply a business proposition: take it or leave it.
The problem is I sense that REO's are not selling either because banks are still holding out for top dollar too and will continue doing so as long as they can hope for some kind of government bailout to help mitigate their losses. Once THAT hope is gome I think home prices will TANK (even more!).
Guys you are simply refusing to accept the facts.
People do not willingly get foreclosed if they are able to sell above what they need to break even. Most do not have the funds to sell for anything less. So if they can't get it or a short sale they get foreclosed. Note that even if way under water a lender will not allow a short if the owner is capable of paying the mortgage. They don't care why you are leaving...only if you can pay or not.
Lenders consistently sell well below the fair market value. Around here and in CA it is around 20%. They may stay closer to FMV in an area with no foreclosures.
The markets here are very close to record levels and those in southern CA are growing at a very high rate. That is all driven by REPOs.
There is no possiblity of a government bail out of the lenders except at the securities level which has already occurred. The only ones having a reasonable shot at a bailout are owner occupied. And then it may be restricted to those who bought in the toxic years.
So get it through your heads...this is an artificial market being driven by the lenders to well below sustainable levels. When the lenders stop or run out of stock the price will likely go up.
People do not willing get foreclosed if they are able to sell above what they need to break even. Most do not have the funds to sell for anything less. So if they can't get it or a short sale they get foreclosed. Note that even if way under water a lender will not allow a short if the owner is capable of paying the mortgage. They don't care why you are leaving...only if you can pay or not.
Lenders consistently sell well below the fair market value. Around here and in CA it is around 20%. They may stay closer to FMV in an area with no foreclosures.
The markets here are very close to record levels and those in southern CA are growing at a very high rate. That is all driven by REPOs.
There is no possiblity of a government bail out of the lenders except at the securities level which has already occurred. The only ones having a reasonable shot at a bailout are owner occupied. And then it may be restricted to those who bought in the toxic years.
So get it through your heads...this is an artifical market being driven by the lenders to well below sustainable levels. When the lenders stop or run out of stock the price will likely go up.
-Well yes you're absolutley right about the reasons behind why current owners can't lower their prices: they can't because they're already upside down! And since no new buyers are anxious to join them in their little underwater journey they have only one relief: foreclosure.
-Tough apples. Don't do subprime if you can't do the time! I feel nothing but contempt for most of the people in that situation. They rolled the dice and lost. I was in the casino too but had enough self-restraint to not gamble away my families future.
-The bailout for screwed lenders & private homeowners would probably come in the form of tax rebates or tax write-offs. Or a court-mandated re-negotiation of the principal amount or the payment terms. All socialist moves of course but we slipped down that slippery slope months ago already comrade.
- I don't understand what you meant in the last paragraph with "this is an artifical market being driven by the lenders to well below sustainable levels. When the lenders stop or run out of stock the price will likely go up". Could you please clarify?
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