Offers over X amount dilemma

If a property you are interested in is advertised as "offers over x amount" but you feel that the value is lower. Do you still try to make an offer?

More specific to my situation, listing agent is the big dog in area i want to invest in. I have justifiable reason why i think the value is approx 5% lower than the asking. I dont want to "offend" and make him think that im not serious in future transactions n case this one is not successful.

I can offer a cash offer for site with not much other clause because the house will be demolished not long after to develop.

How do you guys deal with "offers over xxx" type listings. Just curious.
 
When I make offers, I like the justify them. They seem to do better this way because the agent can use that info to condition his vendor so that he can earn his commission and go home.

So, can you justify a lower offer or do you just want to pay less? You won't offend anyone if you can show them why you're offering what you're offering.

For what its worth, i dont give a crap what a property is advertised at. I do my research and offer based on that. Their ad price means **** to me.
 
Yeah. "Offers over x" is similar to a sales tool known as anchoring. Honestly, I don't even look at asking prices when I submit offers. I do a feaso on the place and offer below what I would have to get it for so I can still come up if they want to negotiate but I couldn't care less how much they are asking for. You can't offend anybody in a free market but with the mindset that you can you could just as easily be offended that someone would ask so much for a property. There are no feelings in business.

We've all heard stories of people who couldn't sell their property so they added $50k or $100k to the asking price and suddenly people in another price bracket were interested and snapped it up. You only pay what something is worth to you.
 
my justification would be the slope of the site and the extra costs involved. im just taking out the costs i would need to incur VS if i buy a flat land.

i have heard the agent himself tell one of the buyers that that owners is aware of the slope and have therefore adjusted the price accordingly, although after getting a quote from someone who does retaining wall, their adjustment is not quite enough.

there have been quite a few home opens already, and another one tomorrow. might pop by again to gauge interest.
 
If a property you are interested in is advertised as "offers over x amount" but you feel that the value is lower. Do you still try to make an offer?

I would.

Back it up with research such as comparable sales. They can only say no - and they might come back to you later if there isn't much interest.

Cheers

Jamie
 
You can try going in, offer above the asking, then say ".....but this needs doing, and that needs fixing........so I'll need to reduce my offer by $x"

The Y-man
 
well, went again today and only couple people was looking around.

had a chat with agent who asked me what my thoughts are. explained my concerns etc.

anyway, made a cash offer below asking (for perspective its abt 4% discount) for site and few hours later, got sms that says vendor has come back at asking price.

to be honest it would be really nice to get the site but not gonna be end of the world if i don't i guess.

just wondering, by countering with asking price, what does it signify if ever. does it mean i got their attention and they are just trying to get a bit more? or are they trying to say we will not budge?

the site has been listed for about 30 days now.
 
From prices are often but not always around the vendors bottom price so I guess that's what they're trying to get seeing as it's been unsold for a month and they're looking unlikely to get over that figure.

You get some vendors setting their bottom price in excess of the from figure but that's a silly move imo and can backfire
 
off topic:

i always find ads that says from x to z price weird. i mean i would always offer the lowest starting point then.:confused:
 
anyway, made a cash offer below asking (for perspective its abt 4% discount) for site and few hours later, got sms that says vendor has come back at asking price.

If you accept the asking price then it is locked in otherwise go back at another figure or keep your figure in place. You thought the property is worth more than the asking price, so if I was you getting the asking price would be a good deal.
 
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