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Old 05-07-2010, 10:01 PM
 
412 posts, read 900,328 times
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Do you consider this a lowball offer? The recent comps sold in the $145 to $240/sq ft range. Our offer equaled about $200/sq ft. The listing price is over $260/sq ft.

The listing agent told our agent that our offer is way out of line, and basically wanted us to provide a new, higher offer without the sellers even seeing the original offer. We're surprised by all of this, because our offer is well within the range of the recent comps. Our offer is much lower than the listing price, but that price is nowhere near comps.

We don't want to just submit a higher offer without receiving a counter offer. We thought that our offer was an excellent starting point for the negotiation. Now, I'm worried that they see our offer as a "low-ball" and don't think that we're serious buyers.

Would you submit a higher offer without receiving a counter-offer from the sellers?
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Old 05-07-2010, 11:15 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,047,421 times
Reputation: 2200
If I felt the offer was in line with the comps, then I'd submit it along with the comp listings that support it. Let the seller counter and show why their comps are supposedly more accurate. What does your agent say? I assume your agent gave you the comps and advice that supports your offer?
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Old 05-07-2010, 11:19 PM
 
Location: Salem, OR
15,211 posts, read 38,037,807 times
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Quote:
Originally Posted by rjrcm View Post
If I felt the offer was in line with the comps, then I'd submit it along with the comp listings that support it. Let the seller counter and show why their comps are supposedly more accurate. What does your agent say? I assume your agent gave you the comps and advice that supports your offer?
Ditto.
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Old 05-08-2010, 12:29 AM
 
412 posts, read 900,328 times
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Our agent sent a list of about 10 comps. We told her we thought that we would just use the average $/sq ft and the square footage to come up with our offer. We didn't think that the house had any features or anything to justify paying much more than average.

Our agent said that our offer was logical, but probably low (however, she didn't provide any comps to justify why she thought it was low). She did think that it would at least be a good starting point to see how motivated the seller is, and she didn't seem to think that that it was outrageously low.

It's our understanding that the offer was submitted to the seller, but we don't think that any supporting comps were provided. Since we haven't received any response from the seller, our agent thinks we should submit a higher offer - basically, the most we would be willing to pay.

In our opinion, just throwing out our best and final offer without even receiving a counter-offer doesn't seem like a good idea. Do you think we should just throw out a final offer and be done with it?
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Old 05-08-2010, 01:20 AM
 
Location: Simpsonville
93 posts, read 159,024 times
Reputation: 32
The listing agent is supposed to present an offer whether he/she likes it or not.

I think people watch too much t.v. The Greenville market is generally not that bad, except in certain areas, pockets, and it still isn't as bad as many other areas of the country.

If you want the home go for it. I would say give them a a day or three and act like you're not interested and see if they come back with anything. Tell them you might offer on another home, etc. Play ball.
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Old 05-08-2010, 04:57 AM
 
Location: NJ
17,578 posts, read 44,291,193 times
Reputation: 16245
Quote:
Originally Posted by skchi View Post
Since we haven't received any response from the seller, our agent thinks we should submit a higher offer - basically, the most we would be willing to pay.
That doesn't sound like a good idea. Why would you submit your highest offer right away?
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Old 05-08-2010, 05:58 AM
 
Location: Cary, NC
2,407 posts, read 10,340,987 times
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Has there been any response? Has the original offer expired? Are there other offers on the table? How badly do you want the house? Just food for thought.
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Old 05-08-2010, 06:47 AM
 
412 posts, read 900,328 times
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Quote:
Originally Posted by DanielChang View Post
Has there been any response? Has the original offer expired? Are there other offers on the table? How badly do you want the house? Just food for thought.
No, there hasn't been a response. The original offer has another day on it before it expires. We're not aware of any other offers.

We obviously like the house, but we'll be fine if we don't get it. We'd be happy to get it at fair market value. I guess the problem is defining fair market value.
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Old 05-08-2010, 07:22 AM
 
Location: Marion, IN
8,189 posts, read 30,230,428 times
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Personally I don't care for SF pricing. What percentage off of list was your offer?
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Old 05-08-2010, 07:50 AM
 
10,468 posts, read 14,506,529 times
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Quote:
Originally Posted by Racelady88 View Post
Personally I don't care for SF pricing.
I'm with you. I've never understood people trying to price a house as if you were buying carpeting for a room. I mean, I wouldn't completely ignore the price/sq.ft., but it would just be one element to be used in determining a fair offer. Not the end all and be all.
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