OT: Should I still make an offer or not

[John Willis]

On Thu, 9 Dec 2004 19:49:30 -0500, "Colbyt" scribbled this interesting note:

You said what I was thinking to begin with!:~)

-- John Willis (Remove the Primes before e-mailing me)

[Edwin Pawlowski]

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 elsewhere.

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 each other.

IMO, your original offer of 390 would have been laughed at in today's market. Of course, there are exceptions.

[Doug Kanter]

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. :-)

[effi]

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it was originally enacted by the texas legislature to make education more fair for children in different districts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 they "appraise"

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 appraisal districts

end of rant

[xrongor]

haha. before you trust ANY agent you should have your head examined. fundamentally there is a conflict of interest. the more the house sells for the more they get whether they are the buyers or sellers agent. its a game of 'who do you trust' with thousands of dollars at stake. dont be a sucker.

what you SHOULD do is go down to the library, get 2 or 3 'how to buy a house' books, and inform yourself.

randy

[xrongor]

i used to work with appraisers. they look at a 1-2 page sheet listing the generic facts about the house (square footage, bedrooms, bathrooms, etc..), they drive by and look at it, and put a price on it. in many cases a crappy house appraises as much as a good house if the agent cant see the problems from the street.

the other problem is that an official appraisal is almost certain to fudge it on the high side because the system works on the basis that the value of real estate goes up. there is huge pressure to make sure houses are not valued too low by the banks, the agents, and the tax system. appraisals are designed by nature to give you the impression you arent getting screwed. they do not represent reality.

the thing to go by is comps. what have comparable houses in the area actually sold for recently. houses (like all things) are worth exactly what someone will give you for it right now. all else is moot.

randy

[Joseph Meehan]

Yea, they were crappy appraisers. As you noted, comps must be considered for a proper appraisal unless they are not available.

[Mike Jak]

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 bidders w/o comment. Don't waste time countering. Plus they likely to try to reneg after inspection.

M

[Edwin Pawlowski]

True, but getting 6% of a $400,000 house is still better than getting 0% of a $500,000 house. Most just want the sale before their counterparts.

Agree

[Doug Kanter]

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.

[Doug Kanter]

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.