I want to make an offer on a house I like thats been on the market for 8 months and no previous offers.?

Question

Its listed for 306K now, as opposed to 334K 8 months ago. The woman has had no offers and wants to move. Since the market is a buyer's market, and she's had no offers, people tell me to really go much lower than the asking price on the offer. I am thinking of offering 250K considering it needs a little work. I anticipate her counter offering until we make an aggreement, but I want to stay about 265 or 275K.

Do you think it is a good idea to lowball her that low on the offer? I really like this place, and its been on the market forever with no previous offers. but I am on a budget. Do you think she would go for that, or do you think she wouldnt budge on the price?

Any advice would help! Thanks!

Keep in mind the woman paid 269K for it 3 years ago. Maybe she would be happy to at least break even?

Answer 1

Low balling is never appreciated??? Don't pay attention to whoever wrote that. You are buying a house, not a piece of gum. It's price negotiations, no ones feelings are going to get hurt and if they do they are WAY TOO sensitive.

Low balling is part of the negotiation game. It is a very good tactic to use. If the person is determined to get a certain amount, they won't accept anything but. More than likely since this house has been on the market for 8 months, the seller hasn't been willing to negotiate and is now realizing the harsh truth of selling a home right now. No negotiation = NO SALE. A low ball figure will give you an idea of where their head is and what they are willing to accept.

Now I wouldn't go too low however. Then your seller might think you aren't serious or can't afford their house. I'd start around $257,000 to $260,000. See if they are willing to offer seller concessions to help with closing costs as well. It will help you to come up with less money out of pocket.

Hope this is helpful

Answer 2

Lowballing is never appreciated. It is insulting, hurts feelings, and makes people think you take them for fools. Make her an honest offer, close to what she wants.

Perhaps, if she has no other debts, she might be willing to take back a mortgage, for a lower selling price. That will provide her with a steady income to help offset the difference between the asking and selling prices.

Or there is something called a land contract. You pay her a monthly payment of interest and principal. She retains ownership, however, until the principal is substantially reduced. It is also another way for her to generate income on the property.

But don't lowball the lady. Go somewhere else, if that is all you want to do.

Answer 3

If there have been no previous offers at all I would first check for structural damage and then I would bid low. The worst thing is that they will say no and if they say yes you didnt go low enough. Also dont go back and fourth to long after an offer or two make a firm offer and stick with it, they will usually take it especially if they are already countering, It means they are ready to sell. If they dont counter chances are they are not coming down much.

Answer 4

Most agents will tell their clients never to completely reject an offer especially if it has been on the market for a long period of time. The bottom line is if the seller wants to move she will counter the offer. You should know what other homes in the area are selling for though so your agent has justification for your offer. This will help the negotiation process tremendously. You have to have a leg to stand on. No one is in the market to give their home away. I have a friend who just received an offer 50K lower than asking price and they were upset, but their agent talked them into countering and the home is now in escrow for 25K less than asking. It wasn't what they wanted but it was in line with comps in the area, so they went for it.

Good luck!

Answer 5

You never know what a seller will accept. You just have to make an offer and wait and see what happens. I will warn you, don't tell the Realtor that you are willing to go higher or he/she might tell the seller. If it's a seller's agent, he/she is supposed to relay any information like that. If you have a buyer's agent, he/she is not supposed to tell but you're better off keeping your mouth shut.

One of three things will happen: She'll turn you down, she'll counter or she'll accept. If she turns you down, you can always make another offer.

Answer 6

Offering $250k might be too low, but it's worth a try. She would probably counter $295k. Sounds like the final result might be $280k...

Take into account her other costs, realtor, her side of the closing, as well as the costs of improvement. I'm assuming that since you say it need a little work, there's been a h ome inspection - not just your thoughts on it.

go for it

Answer 7

It depends on how much she owes the bank on the place as to whether or not she could accept your offer. If she owns the house outright and is desperate to relocate....you might just get a real bargain if nobody beats you to it. I would definitely get a contract contingent on a thorough home inspection though. Eight months with no offers may be hiding a dirty little expensive secret.

Answer 8

Look at what comparable houses have sold for in that neighborhood, do some market research.

Leave emotions out of it, money and emotions don't make good bed fellows.

If you want to see her jump out of her chair and whack you one across the head.. why not offer her 150K and see how that goes over.

Answer 9

Don't feel bad about low-balling, it's all sales and actually you still will be helping the lady out, as she's not going to want to stay in the house much longer.

Answer 10

You can offer any amount you wish. The seller can say yes, no, or maybe. What if you offer $250 thousand? You will never know if she would have taken $245 thousand.