What is considered a "unfair" offer (pct wise) on a home compared to its listing.

Iceman · Mar 2, 2007

I am looking at a home around 250k that has been on the market for over 1 year. It is very early in the process and I haven't even walked thru it or had an inspections done and lets say I know that most sellers in my neck of the woods are pretty frustated with the market currently.

I know from my last house my agent said that most offer 6% less than the listed price for the seller to usually think serious. I am pretty sure all offers most be submitted even if it slightly riduolus ones.

This market is very rough right now and it is very to tough to sell. Their are more homes for sale in my county than ever before according to the local paper. The competition is fierce.

Is 15% of the listing price okay. That would be $212,000 or so. Is this a slap the face to the seller? Remember this home has been for sale for over a year. Is 20% even thinkable?

Still alot of work ahead of me but just wondering how much the game changes when it is a buyers market.

sean1 · Mar 2, 2007

Do you need the house tomorrow?

If not, I'd find 5-10 I liked and put in lowball offers.. Maybe $190,000 or something on them... Do it in a nonbinding way.. You can always make a non binding offer verbally... Some states make you sign forms when making a true offer, but there are many ways to say "I'd really like to buy this house in the 200,000 range..." and then just wait and see if anyone calls you again.

I know many people who have put in many low offers and been surprised when someone needed to get out.

Best to target people going through divorce... A lot of these people just want to be done dealing with the other person.

Sean

joeyfitzclick · Mar 2, 2007

80% of asking is a reasonable starting place. Good luck and remember get those closing costs and points rolled into your loan.

WVU · Mar 2, 2007

Iceman said:
I am looking at a home around 250k that has been on the market for over 1 year. It is very early in the process and I haven't even walked thru it or had an inspections done and lets say I know that most sellers in my neck of the woods are pretty frustated with the market currently.

I know from my last house my agent said that most offer 6% less than the listed price for the seller to usually think serious. I am pretty sure all offers most be submitted even if it slightly riduolus ones.

This market is very rough right now and it is very to tough to sell. Their are more homes for sale in my county than ever before according to the local paper. The competition is fierce.

Is 15% of the listing price okay. That would be $212,000 or so. Is this a slap the face to the seller? Remember this home has been for sale for over a year. Is 20% even thinkable?

Still alot of work ahead of me but just wondering how much the game changes when it is a buyers market.

Ice, somone with your salary of 100k+ should not be looking at homes in the 225k range. You should be looking in the 400-500k range. If you house can gain 5-7% in value per year wouldn't you rather gain 5-7% of 500k versus 5-7% of 225k? Your house is the biggest investment you will ever make. Don't go cheap now or you will regret it later. Guaranteed.

sd2 · Mar 2, 2007

There is really no such thing as a riduculous or insulting offer, made in a non-binding way to test seller intent.

When I was selling property - and this was,mainly, during the recent boom - I received all kinds of offers. Some were complex, with requests to carry a big part of the mortgage, or trades, or the like. One was so crazy I coouldn't figure it out, even my bank officer had trouble deciphering it.

And one mortgage broker in the market for this one century old-plus property had his young, attractive short-skirted wife tour the house, without him there the second time around. "She's young but sure does like old houses," he said.

She sure did, as she took plenty of time walking up the stairs in front of me. And gee, really a lot of time up those dropdown attic stairs. (I didn't follow her into the attic - sex is great but not when it involves many kkks. The morning-after blues would really be painful.)

Sometimes a seller will receive offers he'd consider insulting. After awhile though, they just give you a chuckle, and some sage reflections on human nature.

Bottom line, ask the seller (thru your agent if you are using one - if you are not you may be able to negotiate a lower price) if they would "consider" $xxxxxxxx, and if they eager enough to sell tney'd likely counter-offer #xxxxxx. Then you horse-trade and should get it at a lot lower than they may have wanted to sell it for. Once they get the real aroma of the money prior resolves sometimes go out the door.

SSI · Mar 2, 2007

70% or move on...

this is investment property, correct?

always remember, the money is always made on the BUY.......

buddyboy · Mar 2, 2007

SSI just told you everything you need to know

always remember, the money is always made on the BUY.......

WVU · Mar 2, 2007

SSI said:
70% or move on...

this is investment property, correct?

always remember, the money is always made on the BUY.......

are you kidding me with 70%? That is laughable, but I guess it is dependant on the market.

goodbadugly · Mar 2, 2007

dude, stay classy and pay the amount! thats funny! and if you think the house is overpriced just go looking for another house rather then asking for a discount thats just cheap!

Santo · Mar 2, 2007

LOL, I wish all people were suckers like you GBU.

SSI · Mar 2, 2007

fellas, this is about making money........

if this is an investment property, he should offer no more than 70-75% of the listed price....... if they do not accept, simply move on to the next one.

i can assure you, that a motivated seller will come along soon...

our economy is shifting gears........

shift with it.......

the rental business, is going to boom........... take advantage of it......

if you want this house to be your lifetime residence, throw this out the window and buy the house.......

if your trying to make money, stay with the 70-75% offer......... do not give over 75% of the asking price......

one other thing, buying high and selling higher is no longer going to be the case for a while..

did you guys look at the markets this week........

and before the metal worshippers come out, you better take a look at those as well.....

FairWarning · Mar 2, 2007

If its a hot market, 90% could be a bad offer. If the house has been on the market for a year or so, I would think anything under 80% of the price in relation to the area could be a bad offer.

What is considered a "unfair" offer (pct wise) on a home compared to its listing.

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