is 20% below listing "serious" or just a waste of both parties time?
2007-12-02 06:23:52 · 10 answers · asked by curiousmorey 2 in Business & Finance ➔ Renting & Real Estate
I just recently bought a house...the market was in the down turn...although the listing agent said this area is still HOTTTT...well long story short..I low balled an offer...Fifty thousand below asking....then upped it to $29,000 below asking price.....they reluctantly accepted..it was a bitter pill for them to swallow... The appraisal came back that I bought it $ 15,000 below asking price.... I say take the chance...almost all over the country it is a buyers market....The most that gets hurt is someones pride...but if they want to unload ...they accept...PS beware of realtors that are trying to hold prices in some markets...It may NOT be the sellers setting the real price....TAKE A CHANCE...you can always go up...Never be able to go down on a bid!
2007-12-02 08:00:29 · answer #1 · answered by Bizzy 1 · 0⤊ 0⤋
In a troubled market, you never know. Some people would be grateful for 80% of what they asked to get out from under a problem.
When I read the initial question (before the details) I thought you might be asking about the difference among
pre-qualified for a mortgage (a mortgage company tells you what you APPEAR to qualify for without verifying any info, etc.)
pre-approved for a mortgage (they do the above plus pull the credit report)
and now there are some folks who get a "mortgage approval" that goes through the mortgage application steps and the mortgage is good for some time period, such as a few months.
Any of the above makes a potential seller take a potential buyer more seriously as too many people have NO idea of what level of mortgage they can actually afford or be approved for--especially in a tighter market.
Also in relation to someone else's question, sometimes things such as the seller carrying financing could sweeten the deal to get them interested in your offer. When you can close, negotiating closing costs, etc. could also help make a sale happen.
Hopefully you've got a buyer's agent working with you (typically free to you) to help guide you and get you the best deal.
2007-12-02 14:33:52 · answer #2 · answered by heyteach 6 · 0⤊ 0⤋
What they really mean is they aren't really interested in negotiating a lot on the price. Do some research and find out what other homes in the area have been selling for. If the sellers won't take what you're offering, move on. Recent sales data is well known and they're looking for a sucker if they aren't reasonable. Today, that sucker is almost impossible to find and everyone is looking to get homes at a discount.
So if a seller is overpricing their home and only considering "serious" offers, the home will be on the market for a long time till they become more realistic.
2007-12-02 14:32:03 · answer #3 · answered by Sanford Rosser 2 · 0⤊ 0⤋
An offer is never a waste of time.
I am a real estate investor, and I had made offers 30% and 40% below just the see how much of need there is to sell.
Then, most of the time, I submit another offer.
But sometimes my first offer is accepted. Which always get me think, and should have you thinking, what if they accept your 20% below offer.
I also, submit a letter from my bank or mortgage broker with all offers showing how serious I am in buying.
2007-12-02 14:54:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
20% below asking is not considered serious and is a waste of time for both buyer and seller. These sellers are trying to indicate that they are willing to negotiate reasonably, but aren't in the market to give the house away.
Bizzy makes a LOT of sense (smirk). Of course realtors advise their sellers to hold firm to their prices. That way, the realtor won't make a sale and won't get a commission check. All real estate agents would rather pass up a commission check and try to falsely keep prices higher.
2007-12-02 17:36:46 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
It depends-Are you already qualified to buy the property? Has it been on the market for an unusually long time or are they motivated to move for other reasons? If the answers to these questions are yes then you are probably fine. Frommy past experience the best answer to this question is if you are qualified-MAKE the offer and do it in writing so they can see that you are serious about it. Put some money down so that they can see you have "something of good faith" and then see what testing the waters brings. You will know soon enough! Good Luck.
2007-12-02 14:30:45 · answer #6 · answered by helprhome 5 · 1⤊ 0⤋
Serious means hat you have a pre approval letter. You can obtain that from your mortgage lender/loan officer etc. 20% below listing seems low but one never knows the desperation of the seller.Try it!!You can always change the offer!
2007-12-02 15:14:28 · answer #7 · answered by trop 4 · 0⤊ 0⤋
That really depends upon the market at the time. In a market where prices are rising rapidly, it can mean, "Don't even THINK of offering less than my asking price." In a collapsing market it can mean, "Bring me ANY offer from ANY buyer with either cash or a mortgage committment letter."
2007-12-02 14:45:05 · answer #8 · answered by Bostonian In MO 7 · 0⤊ 0⤋
20% is probably low. But what the heck, it doesn't take much for you to make an offer. Who knows how bad they want to sell.
2007-12-02 14:28:01 · answer #9 · answered by Tim 7 · 1⤊ 0⤋
It means they are open to offers. Use your negotiating skills to drive the deal through.
2007-12-02 14:41:36 · answer #10 · answered by Barbarian 5 · 0⤊ 0⤋