Disbelief -- lowball doesn't even begin to describe it (RE agent, contingent, feedback)
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Some buyers are truly trying to get something for nothing. It irritates me that sellers are maligned but delusional buyers aren't.
But - it could be a start for negotiations. If he's an experienced businessman (sounds like he is), he may simply being playing hardball and being shrewd. I would counter his offer. Chances are he is aware of a fair price for your home and he's testing the water to see how desperate you are to sell. He's playing his role very well - now get your agent into the game and counter his offer!
Good luck!
I agree with you In the Pines!! Definitely counter offer this guy!! and let us know!! People are shrewd and are very ballssyy!!!
I think your agent made a mistake here. You haven't received any offers, and the one guy who comes in with one she doesn't bother to write? Silliness. Get him on paper, with proof of ability to purchase. It's much easier to negotiate from that point, and you may get him up to a number you can deal with. And if he doesn't come up, yu still have the ability to say no. She just threw away a chance to have a conversation with a buyer. I wouldn't do that in this market.
I agree Bill, It is unfortunate sellers still believe the value of their home is X when in reality it is about X-30%. it is a state of denial that is derived from the "boom". Now that the market is recovering from the boom home prices are retreating to the levels they should be at. This is the real Estate recovery. .
You've given us two numbers here...what your house is listed for and what offer was made. What is missing is what is your home WORTH?!?! Perhaps that will explain the low offer. Perhaps the guy is just fishing or not all that serious or trying to get a really good deal, but if you are wanting to sell you'll want to know if you are overpriced before you start laughing off offers without even responding.
We're listed at just under $500 (recently reduced) and were prepared for a lowballish offer, maybe around $450.
Guess what he comes back with.
$275,000.
You haven't given any context. How are we to know $500k is what your house is really worth? What are all the comps (not just ones you've selected), listings near you, unemployment level, and price of new construction in the area? Have you done any updates to your house? Just because this guy offered 45% below your listing price does not mean it's a delusional buyer. It could very well be that this is the first buyer who tried to bring you back down to earth or wake you up to the market reality these days. Hey may not seem serious because he may not think you're actually serious about selling. You've been on the market 3 months. He might just wait you out.
I have read too many stories of sellers pricing their properties above 2007-2008 prices as if the bubble markups had never vanished. They show up in sob stories in newspapers often. Without context, there's no way to tell if you're another delusional seller or someone who priced your house right.
His offer of 45% off your list price is a lot better than all those 'other' offers of 0%.
Buyers test the waters the same way seller's do.
Any written offer is worth negotiating. It's not time consuming to flush it out.
I am aware of several sales in my area of $1MM+ homes where the initial offer was $100-$1000. The sold and closed within a reasonable tolerance from the ask price.
What do the comps say? Is the market value of your property in the 450-500 range? Or is it in the 275-375 range? We recently put an offer in on a second home. They wanted 269. We offered 240--because that's what the comps told us it was worth. We even asked the seller's agent to present us with comps that supported the seller's price. She didn't.
The buyer told us that we low-balled them. And then they told us to take a hike.
We did.
So, is that low-ball? Or is that fair market value?
What do the comps say? Is the market value of your property in the 450-500 range? Or is it in the 275-375 range? We recently put an offer in on a second home. They wanted 269. We offered 240--because that's what the comps told us it was worth. We even asked the seller's agent to present us with comps that supported that price. She didn't.
The buyer told us that we low-balled them. And then they told us to take a hike.
We did.
So, is that low-ball? Or is that fair market value?
What do the comps say? Is the market value of your property in the 450-500 range? Or is it in the 275-375 range? We recently put an offer in on a second home. They wanted 269. We offered 240--because that's what the comps told us it was worth. We even asked the seller's agent to present us with comps that supported the seller's price. She didn't.
The buyer told us that we low-balled them. And then they told us to take a hike.
We did.
So, is that low-ball? Or is that fair market value?
Darn shame. Your initial offer was 10.7% off the ask.
Sounds like the seller got emotional. For all this seller knew, you might have been willing to pay more, especially if the ask price was defendable.
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