Lowball offers...how realistic are they?

[Nemo30]

Thanks Guys,

Aaron, there are properties on the market that have been sitting there for months....in fact there's one that would have been there for at least 6!!
I just skim over these.

I'm talking about ones that are coming up or have just been put on in the last couple of weeks.

I'm surprised that there are some still appearing now, don't know who's got time to clean and make their house look presentable for ofi's this time of year!

Dont overlook those properties that have been on the market for ages - the vendors may be more willing to negotiate than someone who has just listed their property.

The last property I bought was originally advertised for $445k. I watched it sit on the market for months - no one was interested. The price was dropped twice, still no one interested. I waited until I thought the vendors may be getting desperate, offered $380k which was negotiated up to $385k.

There is nothing wrong with the house, it was overpriced to start with and just got stale with everyone thinking something was wrong with it.

 

[kingchevy]

All my property have been brought this way one house advertised for $299000 offered $240000 went to $259500 after negotiating.

Recent one Advertised for offers over $299000 offered them $280000 negotiated down to $285000.

Don't be shy make a low offer you never know how desperate some people really listen for little hints your real estate agent will give you on how much you have to stick to your price don't be afraid to make a low offer and tell the real estate this is your final offer it makes the seller more keen to give you there lowest counter offer to meet you on price.

 

[Chloe]

I'm wondering if people have more luck with lowball offers in areas and houses that are less desirable rather than ones in at least ok locations that are safe and family friendly....

 

[Aaron_C]

I'm wondering if people have more luck with lowball offers in areas and houses that are less desirable rather than ones in at least ok locations that are safe and family friendly....

If I had a good, safe, family friendly property I wouldn't sell for anything less than a good price.

 

[Melbournian]

I'm wondering if people have more luck with lowball offers in areas and houses that are less desirable rather than ones in at least ok locations that are safe and family friendly....

to do low ball offers - you obviously have to have some variables.

I have done this numerous times over the years - some with success some none. it helps to know the agent who can basically tell you the situation of the vendor.

An apartment i bought couple of years was owned by a doctor living in the UK who like separated and needed to get rid of his assets quickly which didn't help with the worsening state of the UK economy back then.

i think it was listed at 440K i put a lowball cash offer of 315K 14 day settlement with 20% cash upfront. i told the agent the offer is only valid today as i am interested in buying something else. He counter at 350K - and i took it. When you have cash to buy as oppose to subject to finance. basically the balance of power falls to you as you can dictate the terms etc.

Sometime you get the desperate vendor - but sometimes you don't.

 

[Chloe]

I was told by my broker that it has to be subject to finance but just make it 7 days as we need the bank valuation.

 

[Melbournian]

i was watching the series million dollar listing los angeles couple of weeks ago... for entertainment value - it does show some level of real estate in terms of offers, counter offers etc. The last episode showed some guy in a ferrari put a super low ball offer of $600K on a 1.4 mil listing house and the vendor (bank) just countered at $650K which he laughed and signed instantly. This was in malibu - high end real estate.

In the US -nobody seems to put a bid themselves everything goes through buyer and selling agents. But it's good entertainment that show for those wanting to seebidding and counter offering in buying real estate.

 

[sanj]

Yeah i saw the tail end of that episode too.

Agree with your post re cash being king with these kind of offers, ive got a family friend who ONLY low balls, works for him though as he owns a hell of a lot of property

 

[Ace in the Hole]

Dont overlook those properties that have been on the market for ages - the vendors may be more willing to negotiate than someone who has just listed their property.

The last property I bought was originally advertised for $445k. I watched it sit on the market for months - no one was interested. The price was dropped twice, still no one interested. I waited until I thought the vendors may be getting desperate, offered $380k which was negotiated up to $385k.

There is nothing wrong with the house, it was overpriced to start with and just got stale with everyone thinking something was wrong with it.

Yep,

We just settled on our PPOR for 1.5 mil less than vendor originally wanted 2-3 years ago.
Priced too high from the start and buyers just lose interest after a while and the market was dropping.
They received offers much higher than we paid, but rejected them, and consequently they paid the penatly of starting off with too high an asking price in a dropping market.

Sometimes waiting for the right circumstances can work just as well as lowballing.

 

[Melbournian]

that happenned to a couple of my friends - they had offers but coz of an extra 10-30K they rejected it only to backwards 30-40K 6 months later.

i see ppl always saying "hey my house is worth X amount LOL it grew 200K recently based on stats - but really your property is only worth what a buyer is willing to pay for minus taxes agent fees etc and if there is a buyer too based on the suburb you're invested in.

My valuation of my place came in at 800K but really i know it would only sell for $650-$700K.

 

[Blacky]

Last year we had a house on the market for $440k, and someone low balled at $360k from memory. We weren't desperate to sell, so didn't bother to counter just told him/her to be realistic. They came back at $390k saying this was their final offer.
We said thanks, but no.
They ended up buying the place 12 months later for $430k as a private sale.

There is nothing wrong with low balling, and if the seller is not interested in selling to you for that price they will say so. You then have the option to increase your original offer, or walk away and keep searching.

Low ball away I say.

 

[MTR]

Hi Blacky
That's right, if the vendor wants to counter the offer then its a starting point.

Low balling is just a numbers game, if I can not make the deal stack up with my offer then just move on until it works.

Cheers, MTR

 

[HandyAndy888]

Most informative thread I've read on Somersoft for a long time. Thank you everyone for your input.

 

[natedog]

I guess in a property transaction emotions can get in the way if you think that low balling may offend the seller.

I myself have learnt to stop assuming what the seller "might" be thinking about an offer that is made to them....because we will never ever really know as the buyer.

A good realestate agent will always stretch the truth to try and create a sense of urgency in a buyer, or a fear if loss that they may miss out on a "great" deal.

That's part of their job.

Switch the emition off, base it on numbers, make an offer that is low.

if you are the only one making an offer without competition at any point in time, then "you" are the market for the property.

I am wrestling with how low to go with an offer on a property right this minute, it's the fun part of creating a deal I think,

Nath