On 8 Dec 2004 19:52:48 -0800, email@example.com wrote:
Alway give the other fellow a chance to say "YES".
You don't know why the other offer was rejected or if in fact, there
was any other offer. The realtor might be trying to do a little
Even if he wouldn't sell at $420 to the previous offer, your offer
might be a wake-up call to him, and he could sell to you for $420 or
I hope this doesn't sound too gratuitous, but when you are buying a
property or a business or anything else, what matters most is its
value to you. If it has a higher value to the owner than it does to
you, so be it, move on.
But always, always, always, make your offer.
You have had a ton of replies. Most all of which I agree with. So rather
than repeat what they have said, I will say I have never paid the "list
price" for any not new construction. My discounts have ranged from 7-25% of
the list price. The secret is in the strength of the offer you make. The
less contingencies, inspections and other BS you include in your offer the
stronger it is. The larger your down payment, with all cash being the
strongest offer, the lower your bid may be. It also helps to place the
largest "good faith" deposit you can write a check for. The owner sees that
5 or 10K check laying on the table. That 5C check means nothing.
Above all be prepared to walk if you can't do the deal on terms you can live
The proper amount to offer is what the house is worth to you. If it is
rejected, move on. The house may well be worth the asking price, perhaps
even more. If you are not willing or able to spend that much, look
When the real-estate market is hot in some areas, offers will come in above
the asking price just to assure the bid is accepted. Yes, it sounds crazy,
but I've heard stories of interested buyers at the house trying to outbid
IMO, your original offer of 390 would have been laughed at in today's
market. Of course, there are exceptions.
It's reaching the point where the exceptions may become the rule. There are
plenty of areas where the value of the homes is based on absolutely nothing.
No beachfront, average school system, no redeeming value whatsoever,
compared to another neighborhood 20 minutes away. To a great extent, home
values are based on propaganda spread by soccer moms and real estate agents.
"The school system is EXCELLENT here". Translation (using NY state as an
example): The system graduates 83% of its kids with regents diplomas. Five
miles away, the next school system graduates 82% of its kids with that
qualification. But, in the more expensive area, the builders put tacky brick
walls at the entrances to the developments and called them "Apple Creek
Manor" or some such crap.
Or, realtor speak: "This is one of the most exclusive neighborhoods in the
Rochester area". Translation (if you ask parents who've seen through the
lie): Everyone's very well off, which means the kids can buy more drugs than
in your school district. So, we have a bigger drug problem.
I'm in a mood. I say, pick out a $400k house and bid what it's probably
worth: $275k. :-)
i don't know where you're at, but in texas the appraisal system is a joke
it was originally enacted by the texas legislature to make education more
fair for children in different districts
properties are "appraised" by appraisal districts, whose appraisers have
never seen the inside of many, if not most, of the residential properties
so appraised values are based on "recent sales" of others houses
again, the appraisers have never even seen the inside of the residential
properties they are "appraising"
this is government at work
imagine hiring an appraiser to value your house and the appraiser says
"okay, i'll drive by and look at the outside tomorrow and submit by
appraisal to you"
that's what texans do when they "hire" government appraisers at the
end of rant
Hey...that's how it was done here with my house when it was appraised
recently. They never set foot in this house. Fortunately, when they spun the
big wheel, they got the figure correct, but that's not always the case.
As someone who just sold my house, I rejected plenty of lowbidders.
Forgive me, but dealing with lowbidders is pointless.
There is always someone who likes this house.
So why would they accept $390,000 on $450,000 house, instead wait
few month and slowly lower asking price, allowing everyone bid
below new asking price.
Using your case: let's say my asking price is $450,000...
Sellers price target: $430,000
Lowballer A bids: $410 I countered at $432. Just slightly above my target.
A calls his agent writes new offer @ 412.
Now his agent has to contact my agent, my agent sets time to present offer.
New offer presented at $412,000. I feel like buyer wasted too much of my
time, seller agent, and a buyer agent time.
At that point we reject offer w/o comment.
Just my experience, unless you must sell house immediately, reject all low
w/o comment. Don't waste time countering. Plus they likely to try to reneg
It depends on what it's really worth, to whom, and why both sides believe
its value belongs at a certain level. Often, the seller has only ONE
criteria: They paid X for it, and want to get their money out of it, even if
they got bent over and paid way too much when they bought it.
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