If you liked a FSBO house that was quite overpriced -- would you move on, or submit a v. low offer? And...?

Question

...and, would it be worth offering a good explanation of what you based your price on, or would that just offend?

The owner designed the house, and it is extremely, er, "unique." We like it, but the odds of other people liking it so much aren't so hot. And some elements of the design, whether anybody likes it or not, plain reduce the value -- extra-small rooms, etc. We're pretty much going to have to insult her designs, and her extremely high view of her house, pretty thoroughly.

Compared to what we can compare it to, it's absurdly overpriced. We want it, but not at the asking price. We also don't want to wait a year for her to figure out she needs to lower the price.

Should we:

Point out the reasons we think it's overpriced, not in the context of an offer, and see what the response is?
Make a lowball offer without comment?
Make a lowball offer, with a list of reasons why?

I grant that this is a bit of a silly question, but I'm curious as to what others would do.

Answer 1

Its a matter of how motivated they are to sell the house. Don't waste your time haggling over the price. Decide what its worth to you and make an offer. You cannot expect someone to lower the price simply because you think that nobody else wants the house. Obviously you want it and you have to decide whether its worth paying the asking price or walking away from the deal if you do not get a response from the seller.

One thing that is important to consider is whether you actually LIKE the house. Often I am criticized about how much I paid for my car because it has some unique features that I like, however, I ended up paying well over the book value because it was a car that I liked. I would have hated to buy something for less than its retail value and it ends up being something that I DONT like regardless of what kind of deal I got on it.

Answer 2

First off I would not worry about offending owner with the amount of the offer. Treat this in as business like a manner as possible.

That being said it sounds like you would like to buy this house at a reasonable price. If this is a custom home designed by the owner I would not mention design flaws in making a low offer.

If there is a value on Zillow.com, I would offer the low end of the range if that is not too high. Another value you could use is the tax assessment value. You should present your offer as being a value given to the house by a third party if possible.

Insulting the house will make your offer weaker, because the owner will not believe that you hate the house. If you really hated the house, you would not be making an offer.

Answer 3

You're working too hard, overthinking it. Just make the offer and don't give explantions. If you can't do that then get a realtor in the area and pay them a nominal fee (or better yet have the realtor approach the fsbo and negotiate a small fee).

If you have to go through this mental gymnastics and are afraid to "offend" with an offer, put yourself in the seller's place. Would you rather get a serious low offer from a qualified buyer or nothing at all?

Answer 4

I would make a lowball offer without comment, or simply state that your offer is so low because you don't think they will find a buyer at that price. If they want to know details, they can contact your realtor. If they are FSBO and set their asking price too high, you telling them why it is too high is basically doing all the work for them that a realtor would be doing, if they had hired one. Why do that for them for free??

Answer 5

Remember this, a house is only worth what someone is willing to pay for it, simple as that. I would make an offer of what you're willing to pay for it. If the home is overpriced, after months of it being on the market they will figure it out and drop the price. If they pass on your offer, than they are missing out on a buyer. Don't worry about offending them.

Answer 6

Do you have a Buyer Agent? They would have a real good feel for this. I would offer 15% low without comment. By commenting you risk saying the wrong thing and blowing the deal. You might consider getting an agent for your own protection. They will approach the seller about the commission. If the seller won't pay they will ask you to pay (abt. 3%). Well worth it to let someone else negotiate for you. They are not emotionally involved and can say things you wouldn't think of. Go to:www.jackosullivan.net for info on Buyer agents

Answer 7

It doesn't matter what the seller has in it, or what he's TRYING to sell it for - WHAT'S IT WORTH? It's obviously not worth $420k or $345k, since it hasn't sold. It sounds like the seller's trying to hit a "home run" with this investment. If it's worth $300k fixed up, and you offer $250k, and put $50k into it, then how is that a good deal? You could just buy another property that's already fixed up if you wanted to put $300k total into it. Me personally, I'd get a REAL GOOD idea what the home is worth in good shape, (an unbiased 3rd party, not the real estate agent) ...then take DOUBLE the repairs off that price (to leave you some room for error). If that number happens to come in at $180k, then that's what I'd offer. I don't care what the seller has into it. Don't pay for the seller's mistakes. That would make you a "motivated buyer". If he/she originally overpaid for the property, then don't bail them out by making a ridiculous offer.

Answer 8

Make your offer without comment. It may be seen as insulting if you start trying to tell the owners why you believe the home is overpriced. If you really want the house you may need to wait for them to realize the price needs to be adjusted.

Answer 9

As a consumer you simply state that in reviewing your budget your best offer is "x amount." How can anyone argue with you? Don't make a ridiculous offer and waste everyone's time but be fair to the seller and to your finances. It's not up to YOU to tell them it's overpriced. You have to watch what you can afford. Nobody is going to list a price that will be snagged without negotiation somewhere. To thine own self be true.

Answer 10

I say make your offer and let them know why your offering that price...use comps, as close as you can find to their home and try negiotating with them. I would shy away from a realtor dealing with them because that's the reason they are fsbo in the first place...lots of people hate realtors...i know, i used to be one! Good luck.