Halcyon Posted February 26, 2012 Share Posted February 26, 2012 Let's assume to home is in a pretty depressed area, and that it's "unique", meaning it will only appeal to a certain type of buyer. It's been on the market for 200 days or more. The price was just lowered 2 weeks ago about 10%. How much below asking can one offer without it being silly, or offensive? Quote Link to comment Share on other sites More sharing options...
Carpe Posted February 26, 2012 Share Posted February 26, 2012 Typically, not much if they just lowered the price. If you are not worried about insulting them, offer what you think it's worth regardless of how much lower it may be, but be aware there may not be a counter offer. Quote Link to comment Share on other sites More sharing options...
Chris in VA Posted February 26, 2012 Share Posted February 26, 2012 Get comps from the neighborhood (get your realtor to do it for you) so you can come back with a good price. 200 days is a lot. Quote Link to comment Share on other sites More sharing options...
PrincessMommy Posted February 26, 2012 Share Posted February 26, 2012 Typically, not much if they just lowered the price. If you are not worried about insulting them, offer what you think it's worth regardless of how much lower it may be, but be aware there may not be a counter offer. I agree. Quote Link to comment Share on other sites More sharing options...
Mrs Mungo Posted February 26, 2012 Share Posted February 26, 2012 Get comps from the neighborhood (get your realtor to do it for you) so you can come back with a good price. 200 days is a lot. This. :iagree: Quote Link to comment Share on other sites More sharing options...
LAS in LA Posted February 26, 2012 Share Posted February 26, 2012 Maybe not anymore? Quote Link to comment Share on other sites More sharing options...
Chris in VA Posted February 26, 2012 Share Posted February 26, 2012 Maybe not anymore? Yes, it does depend on the area. But in general, 200 days is pushing the "been on the market a long time" envelope, imo. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 26, 2012 Author Share Posted February 26, 2012 It may even have been on the market longer. That's just how long it's been on zillow and trulia. Sigh. I like this home, but it's still too pricey for us. I think it's worth probably about 10% less than they're asking. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 26, 2012 Author Share Posted February 26, 2012 Get comps from the neighborhood (get your realtor to do it for you) so you can come back with a good price. 200 days is a lot. Thanks. We'll do this. We need to put down a lot because DH's income is variable (self-employed), so that's why we need the price lowered. We'll see. Quote Link to comment Share on other sites More sharing options...
Tess in the Burbs Posted February 26, 2012 Share Posted February 26, 2012 well we have bought 3 homes and our first twice experiences we offered a LOT lower the first offer and kept going back and forth until we agreed. The agents for both of those sales were very confident offering so low. If the seller wants to sell they will counter offer. Then you counter offer. Basically it's a non verbal way to haggle the price. When they counter offer 1k lower than original it means you may never agree but you try again. And when they don't budge you move on. But the seller who comes back a little closer to your offer is willing to hear another counter offer. Remember you can keep counter offering until they no longer reply :D Our second house was sold to someone who low-balled an offer and came back months later to meet us half way :tongue_smilie: We had bought the house but dh was laid off 3 months later. We were trying to break even in a good market so we couldn't go much lower and he was told that. We had enough money to keep paying so we weren't willing to haggle. Months later he came back closer to our counter offer and our agent cut her rate so we could break even. So maybe the rule of thumb is keep trying :lol: Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted February 26, 2012 Share Posted February 26, 2012 Let's assume to home is in a pretty depressed area, and that it's "unique", meaning it will only appeal to a certain type of buyer. It's been on the market for 200 days or more. The price was just lowered 2 weeks ago about 10%. How much below asking can one offer without it being silly, or offensive? Low as you can substantiate. I bought at house at 60K under asking price in a good market. It was a house with special attributes that not everyone wanted but that I did. I prepared a letter to submit with my offer indicating all comps in the area, and why my offer was an appropriate one. They didn't like it and refused to respond at first. I brought in a good agent on this one (these are rarities). She let me do my job -negotiating - while doing her job, which was translating the offer to something the Seller's agent, who had grown up in the house, could hear. They finally accepted it. So while some Sellers will react emotionally, others will consider what you have to say, how many offers they have had, and how quickly they really want to sell in order to move on. It helped in this case that the house had been paid off for a couple of decades. The answer is: whatever you can substantiate, and depending upon the motivation of the Seller. Quote Link to comment Share on other sites More sharing options...
nono Posted February 26, 2012 Share Posted February 26, 2012 Offer what you can! I've been through many purchases and sales over the years. We've always had low-ball offers when selling. Some were only that. Some were the first point of negotiating. :) Right now, we have a property that's been up for over a year. That's not long around here (hundreds of properties available in a largely second home market). We'd love to entertain an offer. ANY offer. On a unique home in a saturated market, it's hard to simply keep dropping the price, because you could get to zero before you find someone who's right for the property. If the buyer gets insulted, who cares? You're making an offer you know you can carry. Maybe it'll sound good enough to them. Good luck!!! Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 26, 2012 Author Share Posted February 26, 2012 Thanks all for the advice! Quote Link to comment Share on other sites More sharing options...
KrissiK Posted February 26, 2012 Share Posted February 26, 2012 If the buyer gets insulted, who cares? You're making an offer you know you can carry. Maybe it'll sound good enough to them. Good luck!!! :iagree: I would say offer low. We operate in a free market. You can offer whatever you want, but that doesn't mean they have to take it. Quote Link to comment Share on other sites More sharing options...
Meriwether Posted February 26, 2012 Share Posted February 26, 2012 Offer what you can! I've been through many purchases and sales over the years. We've always had low-ball offers when selling. Some were only that. Some were the first point of negotiating. :) Right now, we have a property that's been up for over a year. That's not long around here (hundreds of properties available in a largely second home market). We'd love to entertain an offer. ANY offer. On a unique home in a saturated market, it's hard to simply keep dropping the price, because you could get to zero before you find someone who's right for the property. If the buyer gets insulted, who cares? You're making an offer you know you can carry. Maybe it'll sound good enough to them. Good luck!!! :iagree: Dh went over 20% below the asking price and ended up paying about 20% under asking. We move a lot and can't afford to take a drubbing when it is time to sell. The company will give us the appraised value, but if the market drops the value does, too. Offer no more than you can truly afford. If they get insulted, you haven't lost anything. Actually, I'd offer less than I could afford so there would be room for negotiations. Quote Link to comment Share on other sites More sharing options...
BamaTanya Posted February 26, 2012 Share Posted February 26, 2012 With our first home, we offered 13% below asking. They countered with a price closer to our offer than their asking price. :D We saw and made our offer on the first day it was on the market. Obviously, they knew what they needed and were willing to make a quick sale. We had done our homework and knew the comparables. It was a fair price. With our second, the house had been vacant for 8 mos. Two previous contracts had fallen through. The price had been lowered twice. We STILL offered less (wanted to get into a desired neighborhood but didn't want to break our budget). We haggled back and forth for a few days and met halfway. :D When we sold our first house, someone offered us a low price after the first open house. We rejected it outright. 2 weeks later, they offered 95% of our asking in CASH. We didn't have to wait for their financing and could close immediately. Do your homework. Check the comparables. Offer what you can afford. You have nothing to lose, right? Good luck! Quote Link to comment Share on other sites More sharing options...
Catwoman Posted February 26, 2012 Share Posted February 26, 2012 If you really love the house, offer what you can afford to pay. So what if it's low? The seller can simply say no, or they can counter. But maybe the seller just wants to get the house sold, and is a lot more flexible than you think. You won't know if you don't try. All they can say is no. If they are insulted, that's their problem, not yours, because if you can't afford to pay their asking price, you won't be dealing with them again anyway. Quote Link to comment Share on other sites More sharing options...
ErinE Posted February 26, 2012 Share Posted February 26, 2012 Get comps for the area, but I think 10% below the asking (as of today, not two weeks ago) is reasonable and to be expected. We're looking at selling our house and we are expecting offers anywhere from 15-20% below our asking. Our area is very depressed and we are rational homesellers. However, some people can get very upset by what they consider to be "low-ball" offers. That being said, 200+ days on market, they may be desparate to get rid of the home. Have your realtor communicate the price, plus your willingness to compromise on the final offer if you love the home. Quote Link to comment Share on other sites More sharing options...
cindergretta Posted February 26, 2012 Share Posted February 26, 2012 Reading along here... We are putting in an offer on our first home tomorrow morning. The recently dropped the price by $7,000 and we are offering $8,000 less than current list. Our agent is totally awesome and we are trusting her guidance in this. She has 22+ years experience and doesn't solicit clients - all her clients are repeat and referral. She is an ace at what she does and she has been a friend of ours for years. I will keep my fingers crossed for you if you will cross some for me. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
sparrow Posted February 26, 2012 Share Posted February 26, 2012 If you really love the house, offer what you can afford to pay. So what if it's low? The seller can simply say no, or they can counter. But maybe the seller just wants to get the house sold, and is a lot more flexible than you think. You won't know if you don't try. All they can say is no. If they are insulted, that's their problem, not yours, because if you can't afford to pay their asking price, you won't be dealing with them again anyway. :iagree: Absolutely! We had to sell our last house and we had to take less than what we wanted, but in the end it all worked out because we had enough equity that we still came out on top. If the current owners own it outright, or have owned it for years, they may just be willing to meet your price to get the $$. We offered $40,000 below the asking price for our current house and went back and forth until we got it to about $25,000 below asking. The owner didn't seem too offended with us at the closing :001_smile:. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 26, 2012 Author Share Posted February 26, 2012 Well, we can afford about 20% below their asking :001_huh: but 30% would be very doable. We're in Florida, where the markets pretty much stink, but we're in a better part of Florida, so I just don't know. Comps seem to indicate it's a bit overpriced, by about 15-20% based on what others are going for in the area. Plus, it's....unique. Some people like unique, others don't, and I think around this area, people are not looking for unique. Quote Link to comment Share on other sites More sharing options...
sgo95 Posted February 27, 2012 Share Posted February 27, 2012 It seems like there are no hard and fast rules. People on both sides can be unreasonable. When we bought our house in 2010, we had looked at the comps for each house we put an offer on and we had a pretty good understanding of what each house was truly worth. We offered a little below that (1-2%) for negotiating room. We tried to approach this process rationally, not emotionally, because it was very important to us that we bought at a reasonable price so we could get out 5 years later (we're only here for 5 years) without a huge loss. Two sellers refused to even negotiate with us and, you know what, both later sold for less than what we offered them (:willy_nilly: craziness). The only house that we didn't offer close to what we thought it was worth is the one we bought LOL. It was originally was out of our price range, but they reduced their asking price significantly and we offered close to what we could afford, which was another 10% less than their lowered offering price. We expected to have to come up but they accepted our first offer. Basically, each seller will be motivated to a different degree and it can't hurt to try even if it's technically out of your price range. BTW, we used a buyer's agent, which is the only real suggestion I have. Best of luck! Quote Link to comment Share on other sites More sharing options...
ErinE Posted February 27, 2012 Share Posted February 27, 2012 Well, we can afford about 20% below their asking :001_huh: but 30% would be very doable. We're in Florida, where the markets pretty much stink, but we're in a better part of Florida, so I just don't know. Comps seem to indicate it's a bit overpriced, by about 15-20% based on what others are going for in the area. Plus, it's....unique. Some people like unique, others don't, and I think around this area, people are not looking for unique. Go with 30% but let the realtor know you're open to negotiation. The sellers may be insulted; they might jump at the offer. At 200+ days, you have nothing to lose and they everything to gain. If the home is unique, it probably is a tough sell to the majority of buyers. Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted February 27, 2012 Share Posted February 27, 2012 In ordinary times, I'd say 5% if you have any contingencies (financing, inspection, etc). Today, given that the home has been on the market a long time, I'd say max 10% if you have an all cash offer with either no contingenicies or a very short inspection/financing contingency (under 14 days to remove all contingencies) and a fast closing date. Since they just lowered the price, though, that might be pushing it. Quote Link to comment Share on other sites More sharing options...
Happy Posted February 27, 2012 Share Posted February 27, 2012 It also matters if you are asking for the seller to pay closing costs or if you are asking for the refrigerator, the clothes in the closet, and the car in the garage as well as a super low price. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
Barbara H Posted February 27, 2012 Share Posted February 27, 2012 Really, what's the worse case scenario. If they are insulted they don't take the offer and they don't counteroffer - oh well. Prior to the recession we sold our house for sale by owner. One buyer offered a really crazy lowball price. It was so low, we didn't take it seriously and we didn't offer a counter offer. Two weeks later, they came back and offered just $3,000 under the asking price. Sold. Quote Link to comment Share on other sites More sharing options...
ThisIsTheDay Posted February 27, 2012 Share Posted February 27, 2012 We bought our house two summers ago. It had been on the market for a year. It was the ONLY house we looked at; in fact, without any intention of moving, we saw it online and finally agreed to go look at it, in the hopes that we'd stop thinking about it. They'd dropped the price several times. We offered lower. They were not happy and declined. We offered again 3-4 weeks later, going a bit higher. We negotiated a bit on the price before agreeing. I think they were beginning to worry that the house wouldn't sell for another summer. They'd originally bought high at the peak of the market for $250K. They put $70K worth of remodeling into it, and ended up selling to us for $260K. Unfortunately for them, it was a terrible investment. Quote Link to comment Share on other sites More sharing options...
Rivka Posted February 27, 2012 Share Posted February 27, 2012 The repetitions of "unique" have me really curious. What is unique? :bigear: Quote Link to comment Share on other sites More sharing options...
Catwoman Posted February 27, 2012 Share Posted February 27, 2012 The repetitions of "unique" have me really curious. What is unique? :bigear: I'm so glad you asked -- I've been wondering, too! :D Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted February 27, 2012 Share Posted February 27, 2012 you can offer whatever you wish, but to gage if it is a fair offer, really, it takes more information than you've provided. - it may or may not be over priced, what are the and how many comparables, what condition is it in, how does it show, etc. - get a good real estate agent. when selling my mom's condo, the first offer came from a buyer's agent takeing the tack of "property in this town sells for ___% below first list, so that's what we're offering". Honestly, I wanted to write a note to the (turned down) buyer that they desperately needed a new agent. (we sold it to someone else for considerably more than the first buyer offered.) Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 27, 2012 Author Share Posted February 27, 2012 (edited) I'm so glad you asked -- I've been wondering, too! :D Well....it's not in a gated community...it looks a bit like a ski chalet :lol: It has a sloped roof, wooden ceilings, and a master bedroom that looks like a mini church with a peaked roof and inset shelves. It's on 4 acres--most people don't want that much land--and a bit further away from town. Edited February 27, 2012 by Halcyon Quote Link to comment Share on other sites More sharing options...
CalicoKat Posted February 27, 2012 Share Posted February 27, 2012 Let's assume to home is in a pretty depressed area, and that it's "unique", meaning it will only appeal to a certain type of buyer. It's been on the market for 200 days or more. The price was just lowered 2 weeks ago about 10%. How much below asking can one offer without it being silly, or offensive? Is it going to be a short sale already? If so then you really can't ask any less than the asking price because it's the bank that will turn you down not the owner. Our home is on the market in a short sale. The bank called to let us know NOT to forward any offers to them that aren't at least $10,000 MORE than the listed price. According to the bank since the last home evaluation prices in our area evidently went up $10,000. The realtor's changing the listing prices. Ask the realtor to run neighborhood comparisons for you. Your offer should be in line with those. Quote Link to comment Share on other sites More sharing options...
nono Posted February 27, 2012 Share Posted February 27, 2012 Oh it's pretty and definitely unique! Make a play for it!!!! For the other posters asking, in our town each home is basically custom built. It wasn't all developed at once, but over the course of 100 years. We are a mix of single-family, duplex, and multi-family units. The most-unique :lol: around here are duplexes on lots that would no longer be considered legal. They are grandfathered in for perpetuity, which is helpful from a development standpoint as our land rates are so high. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 27, 2012 Author Share Posted February 27, 2012 Oh it's pretty and definitely unique! Make a play for it!!!! For the other posters asking, in our town each home is basically custom built. It wasn't all developed at once, but over the course of 100 years. We are a mix of single-family, duplex, and multi-family units. The most-unique :lol: around here are duplexes on lots that would no longer be considered legal. They are grandfathered in for perpetuity, which is helpful from a development standpoint as our land rates are so high. Thanks! I think it'll be too pricey, either way. Quote Link to comment Share on other sites More sharing options...
Rivka Posted February 27, 2012 Share Posted February 27, 2012 Oh, how lovely! I see why you like it! Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 27, 2012 Author Share Posted February 27, 2012 Oh, how lovely! I see why you like it! Thanks. We're going to see it this week. It's so annoying that being self-employed is such a hindrance to getting a loan. We have zero debt, pay all our bills on time, and have never had any outstanding loans. Okay, that's not true--DH had school debt, and when he was 23 he couldn't pay a $100 credit card bill. But he's 52 now and he's been good for 20 years or more. :D Quote Link to comment Share on other sites More sharing options...
nono Posted February 27, 2012 Share Posted February 27, 2012 Thanks. We're going to see it this week. It's so annoying that being self-employed is such a hindrance to getting a loan. We have zero debt, pay all our bills on time, and have never had any outstanding loans. Okay, that's not true--DH had school debt, and when he was 23 he couldn't pay a $100 credit card bill. But he's 52 now and he's been good for 20 years or more. :D Check around with some smaller community banks, esp. those that used to S & Ls (back in the day). You never know! :grouphug: Quote Link to comment Share on other sites More sharing options...
Catwoman Posted February 27, 2012 Share Posted February 27, 2012 Thanks for posting the pictures -- it looks very spacious, bright, and airy. I like it, but if you're in an area where almost everyone wants colonials (or whatever,) it could take a long time for the seller to find a buyer. BTW, you need to consider that same factor when you place your offer, because even though you may love the house, if it's not "what most people want," you could have the same difficult time if you need to re-sell it. You need to get it for an excellent price if you decide to buy it, because you may have to take a hit on it at the back end, just as these sellers may have to take a hit on it now. Quote Link to comment Share on other sites More sharing options...
Zoo Keeper Posted February 27, 2012 Share Posted February 27, 2012 Thanks. We're going to see it this week. It's so annoying that being self-employed is such a hindrance to getting a loan. We have zero debt, pay all our bills on time, and have never had any outstanding loans. Okay, that's not true--DH had school debt, and when he was 23 he couldn't pay a $100 credit card bill. But he's 52 now and he's been good for 20 years or more. :D I haven't read through all the replies, but are you figuring what you can afford based on your own accounting, or do you have pre-approval from a bank/credit union? If you don't have a pre-approval, please get one. It makes the whole process much easier--you know how much $ you could have to work with, and the home owners know that a bank will give you money. There IS money where your mouth is, and that is a good bargaining chip. I feel your pain; my husband is self-employed as well. In spite of years of consistent payments on rent/cars, no debt, stellar credit, he was still considered "risky" just because of self-employment. We had to shop around for our mortgage, and find a bank that was willing to look at a whole picture, not just a few little numbers on their little formulas. Our realtor knew the area banks well, and was able to help us find a good fit. Hope you find a great home and a great mortgage!:) Quote Link to comment Share on other sites More sharing options...
chepyl Posted February 27, 2012 Share Posted February 27, 2012 Get comps from the neighborhood (get your realtor to do it for you) so you can come back with a good price. 200 days is a lot. Our house was on the market 1400+ days. We negotiated on an offer $10,000 below asking price, sold for $1000 below plus a portion of closing costs. Make the offer, be prepared for rejection or counter offers. Just because it has been on the market does not nean it has to sell. Even in a bad market. They may take your offer, but they may not. Most realtors won't let you make an offer without preapproval. We had one that wanted the preapproval letter before any showings. Quote Link to comment Share on other sites More sharing options...
Annie G Posted February 27, 2012 Share Posted February 27, 2012 Our house was on the market 1400+ days. We negotiated on an offer $10,000 below asking price, sold for $1000 below plus a portion of closing costs. Make the offer, be prepared for rejection or counter offers. Just because it has been on the market does not nean it has to sell. Even in a bad market. They may take your offer, but they may not. Most realtors won't let you make an offer without preapproval. We had one that wanted the preapproval letter before any showings. I'm exhausted just thinking about the stress of having a house on the market for 1400 days. Yikes!!! Quote Link to comment Share on other sites More sharing options...
Mom22ns Posted February 27, 2012 Share Posted February 27, 2012 I'd make an offer you can live with. We have a house under contract (we're selling). The offers we got ranged from 15-35% below our list and our list was priced competitively with comps. We did have multiple showings every week and several offers in the four months it was on the market. If we had reduced it 10% I would have been prepared to come down another 10% from there. That is just how our offers ran. You could be in the ballpark especially since it has been on the market so long! Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 27, 2012 Author Share Posted February 27, 2012 I haven't read through all the replies, but are you figuring what you can afford based on your own accounting, or do you have pre-approval from a bank/credit union? If you don't have a pre-approval, please get one. It makes the whole process much easier--you know how much $ you could have to work with, and the home owners know that a bank will give you money. There IS money where your mouth is, and that is a good bargaining chip. I feel your pain; my husband is self-employed as well. In spite of years of consistent payments on rent/cars, no debt, stellar credit, he was still considered "risky" just because of self-employment. We had to shop around for our mortgage, and find a bank that was willing to look at a whole picture, not just a few little numbers on their little formulas. Our realtor knew the area banks well, and was able to help us find a good fit. Hope you find a great home and a great mortgage!:) This is good advice-thank you! We need to get pre-approved. DH is a "happy renter":glare: and I am trying my best to convince him to buy (something affordable, of course). That way we'll know what we have to work with, you're right. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 27, 2012 Author Share Posted February 27, 2012 Thanks for posting the pictures -- it looks very spacious, bright, and airy. I like it, but if you're in an area where almost everyone wants colonials (or whatever,) it could take a long time for the seller to find a buyer. BTW, you need to consider that same factor when you place your offer, because even though you may love the house, if it's not "what most people want," you could have the same difficult time if you need to re-sell it. You need to get it for an excellent price if you decide to buy it, because you may have to take a hit on it at the back end, just as these sellers may have to take a hit on it now. Very, very good point. Thanks. Quote Link to comment Share on other sites More sharing options...
Halcyon Posted February 27, 2012 Author Share Posted February 27, 2012 Our house was on the market 1400+ days. We negotiated on an offer $10,000 below asking price, sold for $1000 below plus a portion of closing costs. Make the offer, be prepared for rejection or counter offers. Just because it has been on the market does not nean it has to sell. Even in a bad market. They may take your offer, but they may not. Most realtors won't let you make an offer without preapproval. We had one that wanted the preapproval letter before any showings. Oh absolutely. We wouldn't dream of making an offer without pre-approval. Quote Link to comment Share on other sites More sharing options...
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