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Started By
Message
Lowball home offers
Posted on 11/12/15 at 9:02 pm
Posted on 11/12/15 at 9:02 pm
First, has anyone been successful with one of these?
I would love to hear your stories.
A realtor told me it is a bad idea to make a lowball offer on a home due to the owner saying no outright and not negotiating with you. Obviously, realtors would prefer one to pay more than less.
My second question is if one makes a lowball offer and the homeowner(s) reject(s) it outright, why couldn't one just submit another offer?
Also, I do not have a ton of respect for the realtor profession and would prefer to carve them out of any deal. Would it be frowned upon to ring the homeowner's doorbell and inquire about their contract with their realtor?
Thank you,
3morereps
I would love to hear your stories.
A realtor told me it is a bad idea to make a lowball offer on a home due to the owner saying no outright and not negotiating with you. Obviously, realtors would prefer one to pay more than less.
My second question is if one makes a lowball offer and the homeowner(s) reject(s) it outright, why couldn't one just submit another offer?
Also, I do not have a ton of respect for the realtor profession and would prefer to carve them out of any deal. Would it be frowned upon to ring the homeowner's doorbell and inquire about their contract with their realtor?
Thank you,
3morereps
13
Posted on 11/12/15 at 10:57 pm to 3morereps
Is your "lowball" offer a full cash ofder? Because cash talks brother.
And if you go knock on his door, you better do it on the super slick.
I agree with cutting them out too. It doesn't take a genius to send an email with an offer on fill in the blank contract.
And if you go knock on his door, you better do it on the super slick.
I agree with cutting them out too. It doesn't take a genius to send an email with an offer on fill in the blank contract.
Posted on 11/12/15 at 11:40 pm to 3morereps
Lowball means you don't know market value. Lowball without a realtor only compounds the issue. You are not worth the time if that's the case.
Only problem with cutting the realtor out is the seller likely has a contract that specifically prevents what you are contriving. Even if they ditch their realtor they'll have to keep it off the market for so many days before you can come in the picture. That's a big risk for them to take for some random dude that knocked on their door.
Just think about this before you make a move - unless you don't care about losing the house.
I'm not sticking up for realtors either, just telling you how it is. I sold my last house FSBO and struck a deal within a couple weeks. They ditched their realtor to save some money. Which is much more feasible on the buyer side.
Only problem with cutting the realtor out is the seller likely has a contract that specifically prevents what you are contriving. Even if they ditch their realtor they'll have to keep it off the market for so many days before you can come in the picture. That's a big risk for them to take for some random dude that knocked on their door.
Just think about this before you make a move - unless you don't care about losing the house.
I'm not sticking up for realtors either, just telling you how it is. I sold my last house FSBO and struck a deal within a couple weeks. They ditched their realtor to save some money. Which is much more feasible on the buyer side.
This post was edited on 11/12/15 at 11:47 pm
Posted on 11/13/15 at 12:46 am to 3morereps
Every one of my houston homes offers was a fricking low ball offer. Market value and comps put my house at above 20k what all of the people were offering.
We figured out why...frickING ZILLOW. fricking zillow had my homes value at a set price and people would never go above that in their offers.
After letting the home sit on the market for 6 months we finally just took a low ball offer to get it off my books.
Also every single fricking realtor we have dealt with SUCKS. Our last realtor out was a flipper who only networked to other flippers...so all of the flippers were sending us offers. I have a gut feeling she is taking a kick back somewhere else along the line.
Next house we sell I'm doing it myself and only paying other realtors to bring me buyers.
We figured out why...frickING ZILLOW. fricking zillow had my homes value at a set price and people would never go above that in their offers.
After letting the home sit on the market for 6 months we finally just took a low ball offer to get it off my books.
Also every single fricking realtor we have dealt with SUCKS. Our last realtor out was a flipper who only networked to other flippers...so all of the flippers were sending us offers. I have a gut feeling she is taking a kick back somewhere else along the line.
Next house we sell I'm doing it myself and only paying other realtors to bring me buyers.
This post was edited on 11/13/15 at 12:48 am
Posted on 11/13/15 at 5:39 am to 3morereps
quote:
A realtor told me it is a bad idea to make a lowball offer on a home due to the owner saying no outright and not negotiating with you. Obviously, realtors would prefer one to pay more than less.
Here is my 2 cents as a realtor
To lowball or not to lowball depends on the market conditions and how bad you want the house. I had a transaction recently where a buyer and my builder were 5 grand apart on a 800k listed property (790k offer, 795k counter). Buyer played hardball, I had two showings that day, got another offer, and went into a multiple offer situation. Final sales price was 815k to same buyer who made initial 790k offer.
quote:
My second question is if one makes a lowball offer and the homeowner(s) reject(s) it outright, why couldn't one just submit another offer?
You absolutely can, do it all the time, some realtors don't want to redo all paperwork on what they know is a dead end, but you can write 100 offers on a property if you like.
quote:
Also, I do not have a ton of respect for the realtor profession and would prefer to carve them out of any deal. Would it be frowned upon to ring the homeowner's doorbell and inquire about their contract with their realtor?
You may not respect realtors, but surely you have enough foresight to realize realtors have legal contracts that mitigate this scenario leaving them cut out of transaction?
Good luck
This post was edited on 11/13/15 at 7:58 am
Posted on 11/13/15 at 8:00 am to Mr.Perfect
I must disagree with "cash talks" on a home sale.
No contingency "talks" on a home sale.
I do not care if you pay me, or a bank pays me.
No contingency "talks" on a home sale.
I do not care if you pay me, or a bank pays me.
Posted on 11/13/15 at 8:03 am to lsufanintexas
quote:
frickING ZILLOW. fricking zillow had my homes value at a set price and people would never go above that in their offers.
I hate this fricking site. They have my home valued at about 100K less than the appraisal. I am not going to be selling anytime soon but for the life of me I can't figure it out.
Posted on 11/13/15 at 8:15 am to lsufan1971
Yeah, Zillow is way off base on my value as well.
Posted on 11/13/15 at 8:47 am to Janky
zillow is actually 5k higher than what I have my house for sale for
Posted on 11/13/15 at 9:01 am to yellowfin
It depends where you are with Zillow. In northern Virginia Zillow tends to run $75-100k low on what we could expect to get.
Posted on 11/13/15 at 9:05 am to VABuckeye
It's tough to put a value in my neighborhood because an updated or recent construction will run $80 per sq ft higher than an older home.
Posted on 11/13/15 at 9:17 am to 3morereps
quote:
A realtor told me it is a bad idea to make a lowball offer on a home due to the owner saying no outright and not negotiating with you. Obviously, realtors would prefer one to pay more than less.
Thats actually false. Their commission at best is 3%. On a 300k home, thats 9k. If the house sells for 260k instead, their commision only drops 1200 dollars. Realtors want to sell homes quickly and offering lowball offers usually don't amount to much.
Posted on 11/13/15 at 9:30 am to 3morereps
A home is only worth what someone is willing to pay for it. I say go all out and do what you want. Avoid being emotionally attached and angle for the best deal. I like writing offensive offers. You don't want to sell it, fine, keep paying the payments and I will keep looking around for deals. You never know what the sellers situation is...maybe they have already taken a new job in a new city and have moved. Maybe it's a family death. Been on both ends. It is what it is...it's business and sometimes it's ugly. Go for it.
Posted on 11/13/15 at 9:37 am to 3morereps
I recently purchased a home. Had it narrowed down to two.
First one had been on the market over 60 days and hadn't lowered their price 350,000. I hit them at 345,000 and they cover closing. They moved their price up to 355,000 and cover closing. I walked away.
Other home I ended up purchasing had been on the market 90 days. They had moved their listed price down already from 370,000 to 360,000 but offered me 355,000 plus closing, refrigerator and window drapes, blinds stuff. I tried to get 5 more k out of them, they wouldn't take it, so I took their deal.
I thought I would be able to get more off list, but no luck.
First one had been on the market over 60 days and hadn't lowered their price 350,000. I hit them at 345,000 and they cover closing. They moved their price up to 355,000 and cover closing. I walked away.
Other home I ended up purchasing had been on the market 90 days. They had moved their listed price down already from 370,000 to 360,000 but offered me 355,000 plus closing, refrigerator and window drapes, blinds stuff. I tried to get 5 more k out of them, they wouldn't take it, so I took their deal.
I thought I would be able to get more off list, but no luck.
Posted on 11/13/15 at 11:41 am to 3morereps
People get emotionally attached to houses, especially if it's their personal residence. A lowball offer, they get personally offended by. And when someone is personally offended, they don't want to work with the offender anymore.
It's a total psychological game.
On the flip side, I went in with a low offer for a house that was a flip by a guy who flips about a dozen houses a year. I thought my offer was supported by market, but it was 35K less than he was asking. No realtor was involved. He called and asked to meet me for coffee, and we had a pleasant conversation where he showed me a bunch of invoices and tried to convince me that something closer to the asking price was fair. Essentially, he redid it too nice for the neighborhood to support that value. We shook hands and walked away.
I bought the house next door. 3 months later he sold it for 2K more than I offered him.
If you are going to offer lower, make sure its supported by comps and other objective data. Remember fair value is what someone is willing to pay for it. Everything else is just an estimate.
If a house is priced right and you are just offering 50K less for the heck of it, you are wasting everyone's time.
It's a total psychological game.
On the flip side, I went in with a low offer for a house that was a flip by a guy who flips about a dozen houses a year. I thought my offer was supported by market, but it was 35K less than he was asking. No realtor was involved. He called and asked to meet me for coffee, and we had a pleasant conversation where he showed me a bunch of invoices and tried to convince me that something closer to the asking price was fair. Essentially, he redid it too nice for the neighborhood to support that value. We shook hands and walked away.
I bought the house next door. 3 months later he sold it for 2K more than I offered him.
If you are going to offer lower, make sure its supported by comps and other objective data. Remember fair value is what someone is willing to pay for it. Everything else is just an estimate.
If a house is priced right and you are just offering 50K less for the heck of it, you are wasting everyone's time.
Posted on 11/13/15 at 1:00 pm to LSUFanHouston
quote:
If you are going to offer lower, make sure its supported by comps and other objective data. Remember fair value is what someone is willing to pay for it. Everything else is just an estimate.
I agree with this. To just throw a number blindly out there just to be able to offer lower than asking price is dumb to me. You will get a much better response if your lowball offer is supported by comps in the neighborhood and stuff that's wrong with the house.
Posted on 11/13/15 at 1:09 pm to 3morereps
quote:
Obviously, realtors would prefer one to pay more than less.
Realtors would prefer to get a deal done first and foremost.
Posted on 11/13/15 at 1:36 pm to Ostrich
If its a investment property, be cold, calculated and don't settle.
If its a personal residence don't be a dumb arse. If you love the place, get it. You are talking roughly 60 extra per month for every 10k you finance.
If its a personal residence don't be a dumb arse. If you love the place, get it. You are talking roughly 60 extra per month for every 10k you finance.
Posted on 11/13/15 at 1:40 pm to lsufanintexas
quote:
Every one of my houston homes offers was a fricking low ball offer. Market value and comps put my house at above 20k what all of the people were offering.
We figured out why...frickING ZILLOW. fricking zillow had my homes value at a set price and people would never go above that in their offers.
After letting the home sit on the market for 6 months we finally just took a low ball offer to get it off my books.
Looks like Zillow was right. A home is worth what the market says it is, not what you think it's worth.
Posted on 11/13/15 at 1:42 pm to 3morereps
We lowballed ours. House had been on the market for a few months and we knew that the sellers had already moved into a condo and were paying two mortgages. Offered around $60,000 lower than list with them covering closing and their insurance springing for a new roof. They accepted.
Appraisal came back at $100,000 higher than our purchase price.
Appraisal came back at $100,000 higher than our purchase price.
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