Did you have any success making a lowball offer on your home? (1 Viewer)

[Tiger Fan]

TF's been typing for awhile. He usually gives great advice in this arena.

Lol, I was on my phone and thought I had hit post. Everything I was going to type has already been said. GLGB

 

[Tiger Fan]

Actually, I would echo that I think it only helps you by going with an agent. When interviewing agents, I would tell them exactly what you're trying to do. You'll get a feeling who would be the best fit for you.

Also, agents might have leads on other properties throihh networks that you may not have immediate access to

 

[datonn]

Former doctor in our town went to work at a clinic in another town, and put the house we bought on the market. Sat vacant with no offers for nine months. Appraised for $18,000 more than their asking price (they had just built a new 2+ car garage at the back of the property two years earlier). We came in, LOVED the house (not quite our "dream house," but close), but offered $32,000 below its appraised value. They accepted. Quickly. The home is now appraised at twice what we paid for it. Was even featured on an HGTV show several years back! I always felt a little guilty at how cheap we got the house...since we know we had a HIGHLY motivated seller on our hands (8-9 kids, and two mortgages...with one income, albeit a doctor's income). But we've put at LEAST $75,000 in improvements into the place since we bought it. So I haven't felt THAT guilty.

 

[bentley]

I'm pretty sure every market will be different.

This. We bought our house at full asking price on the first day it was on the market. They had two other full price bids that day.

 

[ghostguy123]

Also, have all your financing in place and present that with your offer. An offer without info on financing (unless paying cash) it seen in a very poor light. If you lowball but come in with proof of your mortgage ready to go they will take the offer more seriously.

Yeah, I got this covered.

Thanks for the good post.

I think he is saying lowballing is fine, but being an idiot isnt.

Yeah, dont go in throwing around offers with no pre-approvals or whatever. That isn't insulting, it would just be stupid.

 

[ghostguy123]

Actually, I would echo that I think it only helps you by going with an agent. When interviewing agents, I would tell them exactly what you're trying to do. You'll get a feeling who would be the best fit for you.

Also, agents might have leads on other properties throihh networks that you may not have immediate access to

Problem with hiring an agent, they are not going to waste their time with you if you are going around only looking to get a great deal (if indeed thats what you are trying to do). it wont take long for them to figure out you are not willing to pay market value on anything, and say bye bye

 

[fantasycurse42]

Actually, I would echo that I think it only helps you by going with an agent. When interviewing agents, I would tell them exactly what you're trying to do. You'll get a feeling who would be the best fit for you.

Also, agents might have leads on other properties throihh networks that you may not have immediate access to

Problem with hiring an agent, they are not going to waste their time with you if you are going around only looking to get a great deal (if indeed thats what you are trying to do). it wont take long for them to figure out you are not willing to pay market value on anything, and say bye bye

If he is looking to buy a house, financing is in order, and is actively using his own time to view houses, this statement is incorrect. If he is making stupid offers and not even getting counters, at that point the realtor would level with him and give him a dose of reality. If he continued making silly offers, a good agent might cut bait at this point, but would've already invested a lot of time which still makes it difficult to do.

 

[ghostguy123]

Actually, I would echo that I think it only helps you by going with an agent. When interviewing agents, I would tell them exactly what you're trying to do. You'll get a feeling who would be the best fit for you.

Also, agents might have leads on other properties throihh networks that you may not have immediate access to

Problem with hiring an agent, they are not going to waste their time with you if you are going around only looking to get a great deal (if indeed thats what you are trying to do). it wont take long for them to figure out you are not willing to pay market value on anything, and say bye bye

If he is looking to buy a house, financing is in order, and is actively using his own time to view houses, this statement is incorrect. If he is making stupid offers and not even getting counters, at that point the realtor would level with him and give him a dose of reality. If he continued making silly offers, a good agent might cut bait at this point, but would've already invested a lot of time which still makes it difficult to do.

If the realtor isnt going to do any work other than a few minutes of advising here and there and not even show any houses, then yeah, why cut bait when you stand to make a potential commission for barely doing any work.

 

[Tiger Fan]

You're not at any risk by trying out a realtor. If you don't think he/she is giving you any value, cut bait

 

[Ignoramus]

I'm pretty sure every market will be different.

This. We bought our house at full asking price on the first day it was on the market. They had two other full price bids that day.

I bought my place for 100% of asking. Am I a sucker? Market values have gone up +10% in the year that we have lived here.

 

[avoiding injuries]

Depends on seller. I got a low ball offer and didn't respond. Because I'm a stubborn person, when they eventually came back with a stronger offer, I did not negotiate as much as I would have. We still came to an agreement, but even during the inspection stage I was less willing to concede to their requests.

 

[Wrigley]

We bought a model home

Had them throw in all of the furniture

Now we've got a crap load of furniture

 

[ghostguy123]

Depends on seller. I got a low ball offer and didn't respond. Because I'm a stubborn person, when they eventually came back with a stronger offer, I did not negotiate as much as I would have. We still came to an agreement, but even during the inspection stage I was less willing to concede to their requests.

Seems pretty silly.

Lets say their best offer was something you originally would have been fine taking, but since they "upset you" or whatever, that best offer is now something you wouldnt take??

I mean, who gives half a damn. You dont know those people and will never associate with them again, yet you negotiate based on feelings??

Egg the house a few months down the road or something rather than mess with your own pocket book, yeesh

 

[avoiding injuries]

Depends on seller. I got a low ball offer and didn't respond. Because I'm a stubborn person, when they eventually came back with a stronger offer, I did not negotiate as much as I would have. We still came to an agreement, but even during the inspection stage I was less willing to concede to their requests.

Seems pretty silly.

Lets say their best offer was something you originally would have been fine taking, but since they "upset you" or whatever, that best offer is now something you wouldnt take??

I mean, who gives half a damn. You dont know those people and will never associate with them again, yet you negotiate based on feelings??

Egg the house a few months down the road or something rather than mess with your own pocket book, yeesh

Like I said, I'm stubborn. I STAND BEHIND WHAT I DID DAMMIT!Every situation is different. If you offer $100k below asking 3 weeks into a listing when there's plenty of traction, I'm not sure what you're expecting. So yes, in a non-desperate situation, I am less likely to negotiate as much.

 

[ghostguy123]

Depends on seller. I got a low ball offer and didn't respond. Because I'm a stubborn person, when they eventually came back with a stronger offer, I did not negotiate as much as I would have. We still came to an agreement, but even during the inspection stage I was less willing to concede to their requests.

Seems pretty silly.

Lets say their best offer was something you originally would have been fine taking, but since they "upset you" or whatever, that best offer is now something you wouldnt take??

I mean, who gives half a damn. You dont know those people and will never associate with them again, yet you negotiate based on feelings??

Egg the house a few months down the road or something rather than mess with your own pocket book, yeesh

Like I said, I'm stubborn. I STAND BEHIND WHAT I DID DAMMIT!Every situation is different. If you offer $100k below asking 3 weeks into a listing when there's plenty of traction, I'm not sure what you're expecting. So yes, in a non-desperate situation, I am less likely to negotiate as much.

Maybe I misunderstood a bit, maybe not.

For example based on what I gather from you there was potential for this to happen:

- You know in your mind you will take, let's say, 110k for your house if that was offered.

Then comes along someone who makes a lowball offer, maybe makes a snarky comment to your realtor about something, and then eventually after being a jerk for a week or so then offers you 110k...............you would reject the offer??

 

[Angry Beavers]

I am sure you are looking everywhere RN, but have you considered looking for a foreclosed property? Got a great deal on the current home nearly 7 years ago in such a scenario. The property was banked owned and the bank was happy to get rid of the house from their inventory before the end of year for what was below market at the time. Just food for thought.

As far as making an insulting offer... who cares? Offer the least amount you think they might accept or what you may be willing to pay. If they are that offended they won't counteroffer and you can up your bid or walk away. If someone gets that insulted they need to realize you are valuing the property, not them as a person. It is a business transaction, not a date.

HTH

G'luck

 

[culdeus]

Appraisal goes a long way these days to making the lowball offer for you. That's what happened to us. We basically knew the house wouldn't appraise and told them we'd book for appraised value or X, whichever was lower or they had to eat all our costs. Appraise as expected came in way lower than X and they balked a bit but ultimately took it. I still feel like I overpaid, but what else is new.

 

[comfortably numb]

I'm trying to find the delicate balance between making an enticing lowball offer and making an insulting lowball offer. Is there a certain percentage under the asking price which is the magic number for a fair opening offer? Even if they do find the initial offer insulting, I suppose most motivated sellers would still counter-offer.

I'm not using a buyer's agent for a few reasons:

- I know exactly what I'm looking for.

- I've been through this entire process before.

- My sister is an attorney who has dealt in many real estate transactions and she offered to help if I need it.

- I'm hoping to get some consideration on the back end from the seller's agent since they won't be splitting the commission.

Any pertinent experiences, interesting stories or general shtick welcome.

In my experience the only thing I will add to the bolded and people saying who cares what the seller says/thinks.

If you are sending in an unreasonable initial offer you may not get a counter and you may even risk the sellers wanting to deal with your 2nd offer.

Sounds silly but the thought process is if you as a buyer are this unreasonable NOW what will the seller expect throughout the entire process?

Will you ask for 75K in repairs after the home inspection etc...

I have seen and heard of deals getting killed at the closing table over the smallest things.

Don't underestimate the emotional prideful stubbornness of people.

 

[chet]

Most motivated sellers will counter as long as your offer isn't ridiculous. Even if they don't counter, you can come back with a better offer. The agent legally has to present all offers to their client.

Since you aren't using an agent, you can shave 2.5-3% right there.

I'd be using Trulia, Zillow, and other online sites where you can find the closed homes in the neighborhoods over the last 3-6 months. Find legit comps, shave the 2.5-3% off and then another 5-7% off of that. That'll leave you 7.5-10% below ask.

Obviously you need to do as much fact finding as possible - How long has the house been on the market (this is obviously easy), why they're moving (this could be more difficult), if the house is vacant, etc...

You can put the pieces together from that info and make a smart offer.

I think the commission is fixed at 5-6% regardless of whether the buyer uses an agent or not. My understanding is that the seller's agent will get it all.

 

[Road Warriors]

I am sure you are looking everywhere RN, but have you considered looking for a foreclosed property? Got a great deal on the current home nearly 7 years ago in such a scenario. The property was banked owned and the bank was happy to get rid of the house from their inventory before the end of year for what was below market at the time. Just food for thought.

As far as making an insulting offer... who cares? Offer the least amount you think they might accept or what you may be willing to pay. If they are that offended they won't counteroffer and you can up your bid or walk away. If someone gets that insulted they need to realize you are valuing the property, not them as a person. It is a business transaction, not a date.

HTH

G'luck

I went this route a couple years back. A word of caution on bank owned properties, they can be great deals, but they come with some additional risk and you have to do your homework.

Our case: Very nice bank-owned property, list price was a bit under market ( maybe 2-3% ) at 289k, but only on the market for about 30 days. We offered 270, and the bank came back with 287. Due to the short time on market, they had some policies in place to get "full market value" for the property. There was also some language in the contract that was outside the normal buyer's contract - something along the lines of "upon acceptance of the offer, you can't back out of the sale for any reason" - all prior to inspection.

In any case, the lack of negotiation and the refusal to allow a change to the language of the contract ( we wanted to have a clause added that allowed us to be released from the contract based on findings in our inspection, if warranted ), we moved on. I followed the house on the market, and it finally sold 3 months later for 267k.

As has been pointed out, timing and circumstance matter in offers.

 

[ghostguy123]

Sounds silly but the thought process is if you as a buyer are this unreasonable NOW what will the seller expect throughout the entire process?

So they say no and/or do not counter............so be it..............Moving on to the next 20 offers on houses.

Now, if you find a house you REALLY like more than the others in the area you are looking, this is an entirely different conversation.

 

[Baloney Sandwich]

Most motivated sellers will counter as long as your offer isn't ridiculous. Even if they don't counter, you can come back with a better offer. The agent legally has to present all offers to their client.

Since you aren't using an agent, you can shave 2.5-3% right there.

I'd be using Trulia, Zillow, and other online sites where you can find the closed homes in the neighborhoods over the last 3-6 months. Find legit comps, shave the 2.5-3% off and then another 5-7% off of that. That'll leave you 7.5-10% below ask.

Obviously you need to do as much fact finding as possible - How long has the house been on the market (this is obviously easy), why they're moving (this could be more difficult), if the house is vacant, etc...

You can put the pieces together from that info and make a smart offer.

I think the commission is fixed at 5-6% regardless of whether the buyer uses an agent or not. My understanding is that the seller's agent will get it all.

correct, the seller's agent gets it all. however, I've used the same agent to sell two of my houses and help me buy one. on the first deal, negotiated him down to 4% on the sale by telling him if he agreed I would use him to help me buy a much large property. Five years later I used him again to sell my current house and negotiated him down to 4.5% (he took 2% and offered up 2.5% if their was a buyer agent).

 

[⚡DEADHEAD⚡]

Where? Know the market. That's important.

A lowball offer in the Bay Area is asking price.

 

[Random]

I've bought distressed, bank owned houses that have been on the market over a year for <50% of asking.

 

[Brony]

Depends on seller. I got a low ball offer and didn't respond. Because I'm a stubborn person, when they eventually came back with a stronger offer, I did not negotiate as much as I would have. We still came to an agreement, but even during the inspection stage I was less willing to concede to their requests.

Seems pretty silly.

Lets say their best offer was something you originally would have been fine taking, but since they "upset you" or whatever, that best offer is now something you wouldnt take??

I mean, who gives half a damn. You dont know those people and will never associate with them again, yet you negotiate based on feelings??

Egg the house a few months down the road or something rather than mess with your own pocket book, yeesh

I've worked in Business Development for many years, and there is always some emotion based on the way people behave in negotiations. And that's just with experienced people dealing with businesses. With residential real estate transactions where people have lived, invested time into fixing, created memories and have a lot of pride, there is just naturally going to be a lot more emotion involved with the negotiation process. In theory, it's just a price and there shouldn't be feelings, but one shouldn't be surprised that this is common.

I'm not surprised if people would walk away from a small % of the value just out of spite. However, no one is going to walk away from a great offer out of spite. Usually, though, lowball offers are associated with sleezeballs.

 

[comfortably numb]

Sounds silly but the thought process is if you as a buyer are this unreasonable NOW what will the seller expect throughout the entire process?

So they say no and/or do not counter............so be it..............Moving on to the next 20 offers on houses.

Now, if you find a house you REALLY like more than the others in the area you are looking, this is an entirely different conversation.

Right, I get that.

RN is asking for advice on a a delicate balance between enticing lowball and insulting lowball.

I don't think good advice is to come in at any lowball price and who cares what the seller thinks.

The delicate balance would be to a low enough price based on what makes sense to RN's budget and what comps have sold for.

Even if you are a flipper and can move on to the next 56 houses I am just pointing out that an insulting initial offer could knock you out of a deal that still could have been very beneficial for you had you not insulted the seller with an unreasonable initial offer that could have lead to the 2 parties eventually coming to a mutual agreement.

 

[fantasycurse42]

Where? Know the market. That's important.

A lowball offer in the Bay Area is asking price.

Same in NYC... You come in at 10-15% below ask around here (unless it is ridiculously overpriced), you'll be laughed at. You def won't get a counter and the property will sell quickly anyways. Even if you come up, you've pissed the seller off and there will be emotion on their end making the transaction more difficult.

I looked at an condo with my wife last year. My thought upon walking in was HFS, this thing is under-priced, we need to buy this. I contacted the agent a few days later to express my interest, let them know I was pre approved, etc. I was informed they already two cash offers over ask and if I wanted to submit, I should do so right away. I couldn't compete

Odds are in most markets you won't run into these issues, but in a hot market in a popular area, this is what you're up against. Also very important to note, the RE market is slowing down right now and the gains that we have seen from 2013 and into the beginning of 2014 have slowed drastically according to the Case -Shiller Housing Index.

 

[SIDA!]

Since it doesn't seem you are 100% into buying right now, you hold the cards.

I'm actively searching all the usual real estate sites, but don't have any move-in deadline whatsoever, so in that sense I have leverage. If a bid falls short on one place... on to the next one.

This is the right attitude to have. Will echo the earlier comment about list price not meaning ####. If someone lists a Ford Pinto for $50,000, is it an insult to offer $500? Well, probably, cuz even that sounds too high.

Redfin.com is the best source for comps in my market. You are looking to buy at a good time of year, especially in the colder markets if you find someone who is motivated to sell. Not a lot of buyers generally this time.

 

[Fat Nick]

My experience: It's all about what YOU think the house is worth - But getting it for less is always better.

When we decided on the house to put an offer in on, we felt that the asking price was reasonable and we would've had no issue paying full-ask. That said, I'd NEVER lead with that. Why pay full ask if you have to. We went in about 10% below ask, and very quickly got a "No Thanks," with no counter. Stupid people basically didn't understand negotiations and just assumed we would settle at 5% off. We ultimately did negotiate with them some, but only got about 2% off of the price. That said, it's 2% less than I was willing to pay, so it's still a win.

I always laugh at people who judge the deal you got based on how much you saved over asking...If I'm looking at a $500K house listed at $525, and I pay $525 for it, did I get a worse deal than someone who is looking at a $500K house listed at $700K who ends up paing $600K? Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

 

[Raider Nation]

Thanks for all the input. To the points above re: considering a foreclosed property. I saw a couple of them which were intriguing, then I read the disclaimer::

* We cannot guarantee that this property is currently unoccupied!



Hiring the Sons of Anarchy motorcycle club to roust a bunch of deadbeats is EXACTLY what I want to do after purchasing the home.

 

[Quez]

Fwiw, my buddy just got a promotion and had to move to Birmingham. Being a crappie time to sell (end of year). He didn't get many bites and had to accept a low offer. Now is probably the time to do it. You never know how bad someone has to sell, and at what kind of loss they are willing to take.

 

[Binky The Doormat]

My experience: It's all about what YOU think the house is worth - But getting it for less is always better.

When we decided on the house to put an offer in on, we felt that the asking price was reasonable and we would've had no issue paying full-ask. That said, I'd NEVER lead with that. Why pay full ask if you have to. We went in about 10% below ask, and very quickly got a "No Thanks," with no counter. Stupid people basically didn't understand negotiations and just assumed we would settle at 5% off. We ultimately did negotiate with them some, but only got about 2% off of the price. That said, it's 2% less than I was willing to pay, so it's still a win.

I always laugh at people who judge the deal you got based on how much you saved over asking...If I'm looking at a $500K house listed at $525, and I pay $525 for it, did I get a worse deal than someone who is looking at a $500K house listed at $700K who ends up paing $600K? Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

The market determines it worth - the comps. It really doesn't matter what you value it at. If you love it and you don't care about over paying and/or you don't ever plan on selling - then this works.

 

[got_nugs]

IMO pay for every house in Naples to be appraised.

 

[IvanKaramazov]

I'm pretty sure every market will be different.

This. We bought our house at full asking price on the first day it was on the market. They had two other full price bids that day.

I bought my place for 100% of asking. Am I a sucker? Market values have gone up +10% in the year that we have lived here.

Our real estate market is the same. Houses in our community generally get multiple offers on day one. This is a small town of about 22,000 people, but it's comparatively affluent and expansion-constrained, which makes the housing market pretty brisk. A 25% below-asking offer would be viewed as completely non-serious and a waste of everyone's time, assuming the house was priced in line with the market to begin with,

 

[The Big Guy]

I like to negotiate from more of a strong playing hand so I look up the owner's current mortgage on public records to see what they owe on the house and figure out if they will be able to take a lower offer or not. Plus looking at buying a property from a deceased owner that has been empty for a few months will make for more motivated sellers. Using the tools available to you to gain a strategic advantage is only common sense IMO.

 

[ghostguy123]

Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

I have to have a sit down with my wife like once a year and go over this with her.

You know, the whole "babe, 50% off doesnt mean #### if they jack up the price on the item before putting out that sign with the nice big bold red numbers".

This talk usually lasts half a year or more, until that one fateful inevitable day down the road where she comes home and here is our convo:

Wife- I got a nice sweater at a good price today

me- were you even looking for or needing one?

Wife- no, but it was 70% off so I got it

me- so how much did you pay

wife- 75 bucks

me- so that sweater was like 200 bucks??

wife- yeah, crazy huh? 70% off was a great deal

me- dear, not only did you not even need the sweater, but two weeks from now that sweater will be on the rack with a price of 75 bucks. You got duped yet again, time for our annual talk about how stores mind #### you into buying #### you dont need.

talk ensues, wife "gets it"..................till like 8 months from now.

 

[ghostguy123]

Thanks for all the input. To the points above re: considering a foreclosed property. I saw a couple of them which were intriguing, then I read the disclaimer::

* We cannot guarantee that this property is currently unoccupied!



Hiring the Sons of Anarchy motorcycle club to roust a bunch of deadbeats is EXACTLY what I want to do after purchasing the home.

they are just trying to cover their ###. Dont get scared about stuff like that.

If you want a little info go ask the neighbors. This serves many purposes. You get to meet the neighbors which is a good thing. They get to meet you, and if they think you would be a decent neighbor they will give you all the info you want. They dont want some slumlord buying it and renting it out to scum, or some jackass moving in.

Chances are if you go over and be friendly and seem decent, they would be happy to get a neighbor they dont hate, and will tell you about the family that was previously there, along with any weird activity that may or may not be going on.

So dont be scared off my disclaimers.

 

[mr roboto]

Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

I have to have a sit down with my wife like once a year and go over this with her.

You know, the whole "babe, 50% off doesnt mean #### if they jack up the price on the item before putting out that sign with the nice big bold red numbers".

This talk usually lasts half a year or more, until that one fateful inevitable day down the road where she comes home and here is our convo:

Wife- I got a nice sweater at a good price today

me- were you even looking for or needing one?

Wife- no, but it was 70% off so I got it

me- so how much did you pay

wife- 75 bucks

me- so that sweater was like 200 bucks??

wife- yeah, crazy huh? 70% off was a great deal

me- dear, not only did you not even need the sweater, but two weeks from now that sweater will be on the rack with a price of 75 bucks. You got duped yet again, time for our annual talk about how stores mind #### you into buying #### you dont need.

talk ensues, wife "gets it"..................till like 8 months from now.

This is the crux of my Kohl's/Penny's reference. Both retailers models are absolutely built on this theory.

 

[ghostguy123]

As they should be. Ridiculous amount of naive people out there.

 

[Doctor Detroit]

Thanks for all the input. To the points above re: considering a foreclosed property. I saw a couple of them which were intriguing, then I read the disclaimer::

* We cannot guarantee that this property is currently unoccupied!



Hiring the Sons of Anarchy motorcycle club to roust a bunch of deadbeats is EXACTLY what I want to do after purchasing the home.

I think that means it comes with an Asian chick.

 

[Raider Nation]

Well then, I'm flexible.

 

[Doctor Detroit]

Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

I have to have a sit down with my wife like once a year and go over this with her.

You know, the whole "babe, 50% off doesnt mean #### if they jack up the price on the item before putting out that sign with the nice big bold red numbers".

This talk usually lasts half a year or more, until that one fateful inevitable day down the road where she comes home and here is our convo:

Wife- I got a nice sweater at a good price today

me- were you even looking for or needing one?

Wife- no, but it was 70% off so I got it

me- so how much did you pay

wife- 75 bucks

me- so that sweater was like 200 bucks??

wife- yeah, crazy huh? 70% off was a great deal

me- dear, not only did you not even need the sweater, but two weeks from now that sweater will be on the rack with a price of 75 bucks. You got duped yet again, time for our annual talk about how stores mind #### you into buying #### you dont need.

talk ensues, wife "gets it"..................till like 8 months from now.

This is the crux of my Kohl's/Penny's reference. Both retailers models are absolutely built on this theory.

The problem with your Kohls theory is you have no idea what my situation was, nor what kind of deal I got. Every situation is different and is driven by a ton of variables. Thinking you know the market conditions, especially those of three or four or ten years ago in every market, is impossible.

Yeah, I'm barking up that tree.

 

[Raider Nation]

To flip the script for a moment, if you are thinking about selling your home, let me offer a piece of advice. Upgrade your damn kitchen! It will pay off on the back end.

I'll see a home online with perfect specs, then I'll click on the slideshow and get to the kitchen... if there are ugly cabinets and fixtures in the kitchen, I don't go any further. Such a turnoff. I suppose I could negotiate a lower price with remodeling in mind, but I really have no desire to buy a home and then give the kitchen a complete overhaul. I want one that's already pleasing to the eye. I saw one home which had a ton of square footage, 2-car garage, finished basement, gleaming hardwoods... and it looked like a bomb went off in the kitchen. I seriously don't get how people can live with a disgusting kitchen.

 

[Bucky86]

To flip the script for a moment, if you are thinking about selling your home, let me offer a piece of advice. Upgrade your damn kitchen! It will pay off on the back end.

I'll see a home online with perfect specs, then I'll click on the slideshow and get to the kitchen... if there are ugly cabinets and fixtures in the kitchen, I don't go any further. Such a turnoff. I suppose I could negotiate a lower price with remodeling in mind, but I really have no desire to buy a home and then give the kitchen a complete overhaul. I want one that's already pleasing to the eye. I saw one home which had a ton of square footage, 2-car garage, finished basement, gleaming hardwoods... and it looked like a bomb went off in the kitchen. I seriously don't get how people can live with a disgusting kitchen.

Very true. Kitchens and master bathrooms are where sellers get the most bang for their buck.

 

[mr roboto]

Love ya DD.

 

[Doctor Detroit]

Love ya DD.

You too gb.

 

[Fat Nick]

Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

I have to have a sit down with my wife like once a year and go over this with her.

You know, the whole "babe, 50% off doesnt mean #### if they jack up the price on the item before putting out that sign with the nice big bold red numbers".

This talk usually lasts half a year or more, until that one fateful inevitable day down the road where she comes home and here is our convo:

Wife- I got a nice sweater at a good price today

me- were you even looking for or needing one?

Wife- no, but it was 70% off so I got it

me- so how much did you pay

wife- 75 bucks

me- so that sweater was like 200 bucks??

wife- yeah, crazy huh? 70% off was a great deal

me- dear, not only did you not even need the sweater, but two weeks from now that sweater will be on the rack with a price of 75 bucks. You got duped yet again, time for our annual talk about how stores mind #### you into buying #### you dont need.

talk ensues, wife "gets it"..................till like 8 months from now.

You could slap a 75% off sticker on a dog turd and my wife would probably buy it...

 

[Fat Nick]

My experience: It's all about what YOU think the house is worth - But getting it for less is always better.

When we decided on the house to put an offer in on, we felt that the asking price was reasonable and we would've had no issue paying full-ask. That said, I'd NEVER lead with that. Why pay full ask if you have to. We went in about 10% below ask, and very quickly got a "No Thanks," with no counter. Stupid people basically didn't understand negotiations and just assumed we would settle at 5% off. We ultimately did negotiate with them some, but only got about 2% off of the price. That said, it's 2% less than I was willing to pay, so it's still a win.

I always laugh at people who judge the deal you got based on how much you saved over asking...If I'm looking at a $500K house listed at $525, and I pay $525 for it, did I get a worse deal than someone who is looking at a $500K house listed at $700K who ends up paing $600K? Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

The market determines it worth - the comps. It really doesn't matter what you value it at. If you love it and you don't care about over paying and/or you don't ever plan on selling - then this works.

I know what you're saying, but I honestly think the whole comps concept is crap. I look at the houses that are comps for my house, and they're a joke. They may be the same sq. footage, but nowhere near as nice inside. They might have similar acreage, but it's all woods...they might be very close house-wise, but be in the next school district. Sometimes it's the other way, and they're way nicer than my place. It's so hard to get a REAL comp. It might tell me that my house is in the $500K range instead of the $400K range, but it's not helping me determine $550K from $535K.

"The market" is basically whatever someone is willing to pay for it. After all, buyers are the market, and I'm a buyer. I guess my arguement is what defines "overpaying?" Because...again...if "the market" is set at whatever someone pays for it at that point in time, and I'm willing to pay that, isn't that the fair value of the house?

 

[Hilts]

You should offer 200% of the asking price, just so you don't offend anyone.

 

[comfortably numb]

My experience: It's all about what YOU think the house is worth - But getting it for less is always better.

When we decided on the house to put an offer in on, we felt that the asking price was reasonable and we would've had no issue paying full-ask. That said, I'd NEVER lead with that. Why pay full ask if you have to. We went in about 10% below ask, and very quickly got a "No Thanks," with no counter. Stupid people basically didn't understand negotiations and just assumed we would settle at 5% off. We ultimately did negotiate with them some, but only got about 2% off of the price. That said, it's 2% less than I was willing to pay, so it's still a win.

I always laugh at people who judge the deal you got based on how much you saved over asking...If I'm looking at a $500K house listed at $525, and I pay $525 for it, did I get a worse deal than someone who is looking at a $500K house listed at $700K who ends up paing $600K? Easy answer, but oddly people tend to equate savings over ask and how good of a deal you got.

The market determines it worth - the comps. It really doesn't matter what you value it at. If you love it and you don't care about over paying and/or you don't ever plan on selling - then this works.

I know what you're saying, but I honestly think the whole comps concept is crap. I look at the houses that are comps for my house, and they're a joke. They may be the same sq. footage, but nowhere near as nice inside. They might have similar acreage, but it's all woods...they might be very close house-wise, but be in the next school district. Sometimes it's the other way, and they're way nicer than my place. It's so hard to get a REAL comp. It might tell me that my house is in the $500K range instead of the $400K range, but it's not helping me determine $550K from $535K.

"The market" is basically whatever someone is willing to pay for it. After all, buyers are the market, and I'm a buyer. I guess my arguement is what defines "overpaying?" Because...again...if "the market" is set at whatever someone pays for it at that point in time, and I'm willing to pay that, isn't that the fair value of the house?

I think you are saying the same thing.

The market is whatever someone will pay and 95% of the time, that will coincide what the comps is the neighborhood are.

Those same comps are the main factor any lender will evaluate to determine if they are lending you any money for the house you want and as you know, if you wanted to overpay for it they won't lend you the money to do so....not anymore anyway