Do you think this offer for a home is to low or insulting?

Question

Finally want to make an offer on a unit in a new loft condo. The unit is now at the asking price of 209k , it has been on the market for about 300 days now, yes just a few more months and it will be a year. Out of the 97 units they have they have still 27 units most the same size . They have no sold a unit in a month, we orginally went to see them over a month ago and the avaibilty was still the same this past week.
We reserached and the other units the same size and price range so0ld from 197k to 204k before they started offering 10k off any unit.
In my opinion the new offer range would then be between 187 and 194.
We were told that they are REALLY looking to sell and want to move on.
IS 185k to much of a low ball offer, or does it seem about right?
Going tomorrow to make an offer..I would like to keep the price between 185k-190k

Answer 1

It wouldn't hurt to offer 185K if they haven't sold anything new lately.... the worst they can do is counter offer or just ignore your offer. If you do 185 maybe they'll come back at 195 and you can settle at 190.

Answer 2

Frankly, given the circumstances you outlined, I'd offer even less than that! I'd even go as low as $170k -- heck, maybe even $165k.

A homeowner might be insulted by such a lowball offer but a business person understands the dynamics at work and would be much less insulted by the offer. If they act insulted, justify it this way:

Assuming that you're not using an agent they're saving about $6.5k by dealing directly with you. That brings $187k down to around $180k as an ASKING price. Offering 10% less than asking (a common tactic) brings you down to $162k. Split the difference on the non-existant commission, and you're right at $165k! If they don't bite at that price, see what they counter with. If their counter offer is anyting less than $180k, you have them on the fence. Come up by halves and ones ($500 - $1,000) until you reach a deal.

Your leverage on this is 300 days on the market and no sales in 30 days. They're still probably paying on their construction financing and watching dollars run down the toilet every day that a unit sits unsold. You are in a VERY STRONG bargaining position. Do NOT give that advantage away over concerns about insulting someone. As they say in the mobster movies, "It ain't personal, it's just business."

Good luck!

Answer 3

I would mk an offer at least 190k because the other units sold for 197k and up as you stated don't low ball it too much if you really like the unit you may lose it like I said I think 190k is a good starting point and see if they come back with a counter offer or except your offer Good luck I hope you get it

Answer 4

Let me try to tell you exactly what to do without sounding like an ad for myself...

Call your mortgage person (this is where I sound like an ad for myself) and get pre-approved or pre qualified. Take that letter in with you when you make the offer. Show them that you have immediate access to funds. Say "I will give you 160k and have the money here in 14 days (my bank can close in 14 days most take 14-20)" There is a time value to money, so to them the offer of money now may be worth taking a bit of a hit. Keep in mind that a new quarter just started so I'm sure they want strong numbers to lead off Q4. Feel free to email me if you have any questions.

Answer 5

may be a code project on the flooring i could verify that first until now yelping any further approximately it. As for coming down on the fee. It won't paintings I particularly have a sparkling homestead (04) and the seller refuse to budge on the fee (industry took it way up now). you're able to see what's advertising on your area my first wager could be $175k perhaps greater. The industry is in a hunch precise now and the developers could ingredient a sprint (2%) yet no longer 5% basically way you may get 5% is that if it sits there for some months after it is supplied. and for sure get a 30 year fastened fee own loan.

Answer 6

I would ask some serious questions. Like: why has it not been sold? Are there issues with the condo itself? Has it passed all the codes? Did someone die in it? Why do you want it so bad? Will it be hard to sell if you have to move? Ask questions!!!!!! If you really want it, start low, money doesn't grow on trees, keep it in your pocket, don't give it away. You could get a really good deal if no one else bids on it, but again, how is the resale factor???? Do some homework.

Answer 7

I'd offer lower than that. As you said, this is a lowball offer and if they're really hurting to sell they'll take it. So offer 175K, then when they say no, say 183K and hopefully they'll take it, but ask for them to take some extra of your closing costs. Your first offer sets the stage... you might want to see what the price per square foot is in the area and *'s it out and see what the place is really worth before making any offers. you are talking about a lot of money you know...

Answer 8

Hell, are you worried you may hurt their feelings? It's just business, girl. Offer $500.00 if you want, all they can (or will) do is say no. Frankly, after 300 days on market they will be thrilled with ANY activity on this property. You have to start somewhere in negotiations, may as well start low vs high, eh?

Answer 9

No way, I would even offer less like 175-185 because keep in consideration they will counter offer right back probably 10- 15 more than what you offer.

Answer 10

Offer 187k, from that point work with them. If you are set on not going past 194k, just let your Realtor know, s/he will do their best for both parties.

Remember that they are "trying" to get rid of it, but not for free. If they do not like 187k offer 191k. Last mark would be the 194k. You will come out on top, it is not insulting it is business.

Insulting would be offering 165k or 170k. I pray that God will help you find a place to make your home.