What percentage of asked price is a good offer?
Damon Scaggs
Is there a simple rule of thumb about how much of an asking price to
knock off for a first offer? 10%? 5%? More? Less?
I am interested in buying my first home and am total ignorant about
the financial side of things, but I don't want to get screwed in the
process. Any feedback people can give would be much appreciated.
Damon
da...@netcom.com
John Hascall
A rule of thumb is: for a properly priced house, less than 90% of asking
is considered a "lowball" (and may be seen as insulting by the seller
-- perhaps insulting enough to cause them to blow you off).
Of course, you may not feel the house is properly priced (we didn't),
so don't feel that you *have* to offer 90% but, you should probably
include information on why you think the house is worth less. In our
case, we knew the seller was unwilling to do any repairs, so we used
estimates we obtained for repairs and based our offer on that.
I think this 90% figure comes from the `conventional wisdom' that houses
generally sell for 95% of asking (i.e., you come up 5%, they come down 5%).
Of course, in some markets houses actually sell for more than asking.
YMMV,
John
--
John Hascall ``An ill-chosen word is the fool's messenger.''
Systems Software Engineer, ISU Comp Center + Ames, IA 50011 + 515/294-9551
Ron Rothenberg
JH> A rule of thumb is: for a properly priced house, less than 90% of asking
JH> is considered a "lowball" (and may be seen as insulting by the seller
JH> -- perhaps insulting enough to cause them to blow you off).
This is a very dangerous but persistent myth among real estate buyers
and has caused many people to overpay for houses. It shouldn't be
spread any further.
JH> I think this 90% figure comes from the `conventional wisdom' that houses
JH> generally sell for 95% of asking (i.e., you come up 5%, they come down 5%
It comes from ignorance and an unwillingness to do the homework required
to figure out what a house is worth, or to hire someone competent to do
it for you. It's very expensive laziness.
JH> Of course, in some markets houses actually sell for more than asking.
You bet, and do you know why? And what happens if you bid 10% below
asking on these little gems?
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
* SLMR 2.1a * It IS the heat!!
Clark, Sue
>
>
>Is there a simple rule of thumb about how much of an asking price to
>knock off for a first offer? 10%? 5%? More? Less?
Welcome to shark infested waters.
Try a really basic approach and don't worry too much about making
people angry.
Offer what you can afford. And, tell the agent/seller involved that
you really like the house, it's perfect, blah, blah, blah, so they
won't feel insulted, but offer what you can afford.
I have on two separate occasions purchased homes that were priced way
beyond what I could afford -- but I really liked the houses and
really wanted them --- in each instance, I made an offer that was
within my budget. The first time, the house was priced about $125,000,
and I offered 80,000, because I could live with that. As it turned out,
the house had been overpriced for three, yep, three years, and the
seller had just dropped the price to $125,000 --- and was simply at
his wits end when I showed up with my 80,000 offer. We settled at
82,500 and I lived there until my husband died and absolutely loved
the house.....
Recently, I was looking for a smaller house, less expensive to maintain
and something I could take care of easily. I spied the house I wanted,
with the 82,500 pricetag. I could afford 52,000 and offered it. It
wasn't easy, and there was compromising on each part, i.e., I took the
house as is, and have had to do some expensive roof repairs over time.
Granted, these were unusual happenings, it seldom works that way.
On the other hand, have bought houses when the owner would hardly budge
on the price. One that I dearly loved I ended up buying within 10K of
the asking price, and sold it for only 15K over what I paid -- lost money
by the time I screened the porch, paid real estate commission and made
some improvements.
Bottom line, first time buyer, is to look a lot....get a feel for what
you can get with your money and how much it is really going to cost...
best of luck to you....
If these prices sound very low, they are. I looked long and hard to find
the two houses that I got good prices on, and did extremely well when I sold
the first (it was river-to-river property) and plan to do well whenever I
sell the current home.
Ron Rothenberg
CS>Welcome to shark infested waters.
Residential real estate need not be dangerous - if people were more
polite to each other, it would be a pleasure. If you act like a shark,
people will react to you like a shark.
CS>Offer what you can afford. And, tell the agent/seller involved that
CS>you really like the house, it's perfect, blah, blah, blah, so they
CS>won't feel insulted, but offer what you can afford.
What you can afford is irrelevant too. Try this at your local Porsche
dealer and see how effective it is: "Gee sir, I'd love to buy a Porsche,
but I can only afford $10,000. Is that OK?"
CS>Recently, I was looking for a smaller house, less expensive to maintain
CS>and something I could take care of easily. I spied the house I wanted,
CS>with the 82,500 pricetag. I could afford 52,000 and offered it. It
CS>wasn't easy, and there was compromising on each part, i.e., I took the
CS>house as is, and have had to do some expensive roof repairs over time.
CS>Granted, these were unusual happenings, it seldom works that way.
Maybe it was indeed only worth $50K, or less.
CS>Bottom line, first time buyer, is to look a lot....get a feel for what
CS>you can get with your money and how much it is really going to cost...
GET IN TOUCH WITH VALUE - NOT LISTING PRICES.
CS>best of luck to you....
"Americans know the price of everything and the value of nothing."
- Oscar Wilde
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
* SLMR 2.1a * If it ain't broke, break it and charge for repair.
Ron Rothenberg
LJ>As far as I can tell, this completely depends on the market at the
LJ>place & time you're buying. The same offer that would be snapped up in a
LJ>strong buyer's market, will deeply insult a seller in a strong
LJ>seller's market. I suggest you ask this on a local forum (or at least
LJ>tell us where you are), to get some info more relevant to your area.
I hate to have to hammer the point, but please, pay attention to the
VALUE of the house.
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
* SLMR 2.1a * Very funny Scotty - now beam up my clothes.
Laura Johnson
: Is there a simple rule of thumb about how much of an asking price to
: knock off for a first offer? 10%? 5%? More? Less?
As far as I can tell, this completely depends on the market at the
place & time you're buying. The same offer that would be snapped up in a
strong buyer's market, will deeply insult a seller in a strong
seller's market. I suggest you ask this on a local forum (or at least
tell us where you are), to get some info more relevant to your area.
: I am interested in buying my first home and am total ignorant about
: the financial side of things, but I don't want to get screwed in the
: process. Any feedback people can give would be much appreciated.
: Damon
: da...@netcom.com
--
Laura Johnson
lau...@fc.hp.com
Hewlett Packard NSMD
Ft. Collins, CO
Laura Johnson
: SUBJECT:Re: What percentage of asked price is a good offer?
: -rsr-
--
Ron Rothenberg
DS>Message-ID: <damonD2...@netcom.com>
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DS>From: da...@netcom.com (Damon Scaggs)
DS>Subject: What percentage of asked price is a good offer?
DS>Message-ID: <damonD2...@netcom.com>
DS>Organization: NETCOM On-line Communication Services (408 261-4700 guest)
DS>Date: Mon, 23 Jan 1995 17:22:00 GMT
DS>Lines: 12
DS>Is there a simple rule of thumb about how much of an asking price to
DS>knock off for a first offer? 10%? 5%? More? Less?
DS>I am interested in buying my first home and am total ignorant about
DS>the financial side of things, but I don't want to get screwed in the
DS>process. Any feedback people can give would be much appreciated.
DS>Damon
DS>da...@netcom.com
* SLMR 2.1a * The road to success is under construction ...
Ron Rothenberg
DS>Is there a simple rule of thumb about how much of an asking price to
DS>knock off for a first offer? 10%? 5%? More? Less?
The percentage is irrelevant. Particularly in this case - I can give
you figures - homes sell for about 8% below their original listing
price, and 2%-4% below their ultimate asking price, but that would be a
disservice.
I can show you homes that are priced 30% over their market value, some
10% over, some right at their market value, and every now and then one
below market value. To apply a given percentage to any of these
situations would be foolish.
Be wary of people quoting averages to you - especially when the standard
deviation is large - In a recent poll of human beings, it was shown that
the average human being has one testicle and one ovary.
More to the point - what is the home worth? Is it fairly priced? What
is the competition like? Is it very desirable? Are you competing with
many other buyers? Are there many other homes like it? What are they
selling for?
If these questions stymie you, your best investment is to pick up a book
on home buying - I love Ilyce Glink's "100 Questions Every First Time
Home Buyer Should Ask." and read it cover to cover. It sounds like
that will be the best investment you can make. Wait until you're clear
on values of homes in your area.
An alternative is hire a buyer broker - who can do an Opinion of Value
or Comparative Market Analysis for you, and give you some advice and
advocacy on negotiating - there are many more terms when you buy a home
than just price.
My advice: Wait! Do a bit of homework, and then you'll be an informed
consumer instead of a lamb being lead to the slaughter.
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
DS>I am interested in buying my first home and am total ignorant about
DS>the financial side of things, but I don't want to get screwed in the
DS>process. Any feedback people can give would be much appreciated.
DS>Damon
DS>da...@netcom.com
* SLMR 2.1a * Night of the living dead chipmunks
Clark, Sue
>
>SUBJECT:Re: What percentage of asked price is a good offer?
>
>CS>Welcome to shark infested waters.
>
>Residential real estate need not be dangerous - if people were more
>polite to each other, it would be a pleasure. If you act like a shark,
>people will react to you like a shark.
>
are nice and polite to each other, there are no shark infested waters
anywhere ---- but the real estate arena (at least in sunny Florida) isn't
full of nice, polite people -- maybe you'd like for it to be, since
that's how you choose to make your living, but it's not. Most places
it's relatively easy to become an agent, and the competition is fierce.
I was continually astounded by the lack of cooperation, the rudeness and
the disregard for the customer --
>CS>Offer what you can afford. And, tell the agent/seller involved that
>CS>you really like the house, it's perfect, blah, blah, blah, so they
>CS>won't feel insulted, but offer what you can afford.
>
>What you can afford is irrelevant too. Try this at your local Porsche
>dealer and see how effective it is: "Gee sir, I'd love to buy a Porsche,
>but I can only afford $10,000. Is that OK?"
>
I disagree -- what you can afford is very, very relevant. It's not like
buying a Porsche --- the typical home seller is not a professional car
salesman. I'm rather surprised to see you make that statement, had come
to respect you, most of your comments seem pretty solid. To the buyer,
perhaps not to you as the agent, but, to the buyer, what the buyer can
afford should be one of the most relevant things of all. It certainly
will not be to the seller, nor to the agent, who is paid a % of the
final selling price. (Obviously, someone with $10,000 cannot afford a
Porsche.....)
>CS>Recently, I was looking for a smaller house, less expensive to maintain
>CS>and something I could take care of easily. I spied the house I wanted,
>CS>with the 82,500 pricetag. I could afford 52,000 and offered it. It
>CS>wasn't easy, and there was compromising on each part, i.e., I took the
>CS>house as is, and have had to do some expensive roof repairs over time.
>
>CS>Granted, these were unusual happenings, it seldom works that way.
>
>Maybe it was indeed only worth $50K, or less.
not so....this ain't my first rodeo...
>
>
>CS>Bottom line, first time buyer, is to look a lot....get a feel for what
>CS>you can get with your money and how much it is really going to cost...
>
>GET IN TOUCH WITH VALUE - NOT LISTING PRICES.
>
>CS>best of luck to you....
>Ron Rothenberg
>Buyer Broker/CFP (Certified Financial Planner)
btw -- I left real estate because I didn't like being in a business where
so many of the people involved were either mildly or wildly unethical.
Yes, I did make good money for a couple of years, and I still have
friends that I sold to, it was the ethics of the whole mess that really
turned me off. Note, I didn't say All the People..
Sue Clark
John Hascall
}JH> A rule of thumb is: for a properly priced house, less than 90% of asking
}JH> is considered a "lowball" (and may be seen as insulting by the seller
}JH> -- perhaps insulting enough to cause them to blow you off).
}This is a very dangerous but persistent myth among real estate buyers
}and has caused many people to overpay for houses. It shouldn't be
}spread any further.
Then perhaps you should rip pages 108 and 109 out of your copy of
Ilyce Glink's "100 Questions Every First Time Home Buyer Should Ask."
which you just recommended that people read "cover to cover" earlier
in this thread...
}JH> I think this 90% figure comes from the `conventional wisdom' that houses
}JH> generally sell for 95% of asking (i.e., you come up 5%, they come down 5%
}It comes from ignorance and an unwillingness to do the homework required
}to figure out what a house is worth, or to hire someone competent to do
}it for you. It's very expensive laziness.
Note that I said `for a properly priced house'. If you believe a
house is properly priced (hopefully through at least looking at
comps or better yet having an appraisal done), then I think
*as a rule of thumb* 90% is not a bad place to start. If you
think a house is overpriced, then 90% of what you think it
should be priced may be appropriate. Of course, this should be
tempered with information on what the market and this seller is
like.
}JH> Of course, in some markets houses actually sell for more than asking.
}You bet, and do you know why? And what happens if you bid 10% below
}asking on these little gems?
Typically, it seems if a house goes for more than asking, there was
either a bidding war or somebody was suckered into thinking there was...
Either you will lose the house to another bidder or you will call
their bluff.
Ron Rothenberg
JH> Note that I said `for a properly priced house'. If you believe a
JH> house is properly priced (hopefully through at least looking at
JH> comps or better yet having an appraisal done), then I think
JH> *as a rule of thumb* 90% is not a bad place to start. If you
JH> think a house is overpriced, then 90% of what you think it
JH> should be priced may be appropriate. Of course, this should be
JH> tempered with information on what the market and this seller is
JH> like.
In some cases, yes - in competetive markets, it may be a really lousy
place to start - you really have to guage the value of the house, the
desirability of the home to others, and your relative negotiating
strength for that home. If you continually make 90% first offers in a
busy market, where there are three 95% offers in front of you, the
sellers are not even going to look your way.
JH>}JH> Of course, in some markets houses actually sell for more than asking.
JH>}You bet, and do you know why? And what happens if you bid 10% below
JH>}asking on these little gems?
JH> Typically, it seems if a house goes for more than asking, there was
JH> either a bidding war or somebody was suckered into thinking there was...
Or the house was extraordinarily well (low)- priced or is extremely
desirable for some other reason. We priced my mother's house at about
$3000 less than what we expected to get for it. Many people bid 10%
below list. Some savvy buyers offered more. It eventually sold for
$5000 over listing price.
JH> Either you will lose the house to another bidder or you will call
JH> their bluff.
True enough, but it is usually easy enough to determine if it is a bluff
or not.
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
* SLMR 2.1a * [dignified silence]
John Mccoy
: : Is there a simple rule of thumb about how much of an asking price to
: : knock off for a first offer? 10%? 5%? More? Less?
No.
: : I am interested in buying my first home and am total ignorant about
: : the financial side of things, but I don't want to get screwed in the
: : process. Any feedback people can give would be much appreciated.
Basically: the most certain way to get the house you want is to offer
full price. Anything else runs you the risk of not getting it.
However: since your priority is to avoid getting beat on the deal, you
need up-to-date market information. Consult a good local agent (try
driving the neighborhood and looking for "Sold" signs; market value, it
is agreed, is the price that willing buyers and sellers meet at. An
agent who is having good luck getting buyers and sellers to meet will
have a pretty good idea of market value).
Ron Rothenberg
JM>: : I am interested in buying my first home and am total ignorant about
JM>: : the financial side of things, but I don't want to get screwed in the
JM>: : process. Any feedback people can give would be much appreciated.
JM>Basically: the most certain way to get the house you want is to offer
JM>full price. Anything else runs you the risk of not getting it.
That's no guarantee either. Offering a house for sale is not like
advertising a blender at K-Mart (no rain-checks). It is advertising a
willingness to accept offers on the house. The listing price is sort of
irrelevant. Consider that there might be offers higher than listing
price, or a lower offer with terms and contingencies that might better
suit the seller.
JM>However: since your priority is to avoid getting beat on the deal, you
JM>need up-to-date market information. Consult a good local agent (try
JM>driving the neighborhood and looking for "Sold" signs; market value, it
JM>is agreed, is the price that willing buyers and sellers meet at. An
JM>agent who is having good luck getting buyers and sellers to meet will
JM>have a pretty good idea of market value).
Disagreed strongly - that agent who's doing all the selling may have a
good idea in his/her own mind, but is not allowed by LAW to tell that to
you. Those agents work for the seller, and it is their job to get the
highest point for the sellers of those properties, especially from naive
buyers. Ask the fox for advice on guarding the chicken coop, you say?
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
* SLMR 2.1a * I knew I shoulda taken that left at Albuquerque
William G. Bunton
John Hascall <jo...@iastate.edu> wrote:
>Damon Scaggs <da...@netcom.com> wrote:
>}Is there a simple rule of thumb about how much of an asking price to
>}knock off for a first offer? 10%? 5%? More? Less?
>}
>}I am interested in buying my first home and am total ignorant about
>}the financial side of things, but I don't want to get screwed in the
>}process. Any feedback people can give would be much appreciated.
>
> A rule of thumb is: for a properly priced house, less than 90% of asking
> is considered a "lowball" (and may be seen as insulting by the seller
> -- perhaps insulting enough to cause them to blow you off).
In my experience (as a seller), for a properly priced house, less than
100% of asking is considered lowball, and was seen as insulting. The
lowball (to us) offer (which was about 8% below our asking price) came
the very day the house was listed. A full offer came the next day;
also the first person appearently reconsidered and made another offer
for the full asking price. Guess who had insulted us, and lost any
hope of buying the place?
Note that the home was actually underpriced, when I said properly
priced I mean for our purposes. The realtor knew we wanted to sell
ASAP, and tried to price the house fairly, but so that it would sell
quickly.
--
William G. Bunton | If it's in stock, we've got it.
w...@bs.com | -- Walker Tire Co. sign
Bunton Studios, Kellogg, ID |
Stavros Macrakis
In my experience (as a seller), for a properly priced house, less than
100% of asking is considered lowball, and was seen as insulting. The
lowball (to us) offer (which was about 8% below our asking price) came
the very day the house was listed. A full offer came the next day;
also the first person appearently reconsidered and made another offer
for the full asking price. Guess who had insulted us, and lost any
hope of buying the place?
What's this "insulting" business? And how had they "lost any hope of
buying the place"? I understand that you _expected_ 100% offers, but
"the best laid plans of mice and men gang aft agley".
* What if there hadn't been any offers above 90% after another two
months? Would you have reconsidered their 92% offer? Or would
your sense of "insult" prevent you from doing this? Would you
instead lower the listing price to 92% of the original price but
refuse new offers from the original 92% offerer? Sure, you didn't
expect this to happen, and it didn't happen, but _what if_ it had
happened?
* What if their second offer were at 103%? Would you have ignored
it since you had a 100% offer in hand (assuming of course that you
hadn't accepted the 100% offer)? I have seen bidding wars where
both bidders started below 100%, and the house ended up selling
for over 100%. In your view of things, this couldn't happen,
because both bidders would have "insulted" you.
I just don't understand this concept of "insult" in the context of a
commercial negotiation. I can understand not accepting an offer you
consider too low, but I don't see what that says about accepting
future offers from the same person.
In particular, in the scenario which you sketch, with two offers at
100% as of day 2, why didn't you go back to the two bidders and let
them know that they had to do better to get the house? Did you have
an agent? If so, he/she was incompetant not to get you better than
100% under these circumstances. It sounds as though you threw away
some thousands of dollars because of some strange perception of
"insult".
-s
m.j.miller
William G. Bunton <w...@succubus.bs.com> wrote:
>
>In my experience (as a seller), for a properly priced house, less than
>100% of asking is considered lowball, and was seen as insulting. The
>lowball (to us) offer (which was about 8% below our asking price) came
>the very day the house was listed. A full offer came the next day;
>also the first person appearently reconsidered and made another offer
>for the full asking price. Guess who had insulted us, and lost any
>hope of buying the place?
>
>Note that the home was actually underpriced, when I said properly
>priced I mean for our purposes. The realtor knew we wanted to sell
>ASAP, and tried to price the house fairly, but so that it would sell
>quickly.
>--
sellers tend to price their houses on the high side, and buyers
according bid low. Then the bargaining begins. I would say that
bidding 5%-10% below the asking price is common around here.
So if you put a low price on a house around here you are bound
to get some low bids.
Ultimately your bid price should be based on what similar houses
in the same area have recently been selling for. Underpriced or
truly fair priced homes will sell quickly. Buyers who are
serious soon get an accurate picture of how much house you
can buy for a given price within their area of interest.
Mark Miller
Steve Oliveau
: Bottom line, first time buyer, is to look a lot....get a feel for what
: you can get with your money and how much it is really going to cost...
Having just bought my first house, I definitely agree. My wife and I
looked at houses every weekend between March and November last year, put
offers on 6 houses, were in escrow on 3 of those, blasted through 3
crappy realtors (until we found one who looked out for OUR interests).
The first accepted offer was 84% of asking price. Fell through because
seller didn't disclose hazardous waste and was not willing to pay for
removal. The second accepted offer was 89% of asking. Seller lied about
repairs after January LA earthquake. Again not willing to pay for
repairs. Number 3 was accepted at 99%. This was the first house we both
_adored_ so we were willing to jump on it.
There was a pattern to the accepted offers vs rejections. The people who
accepted our low offers were very motivated to sell: either retiring,
jobless or scared to death of earthquakes. The people who wouldn't budge
were trying to get a return on their investment.
I would say don't follow any strict percentage rule of thumb. Pay close
attention to the comparable sales your realtor gives you. Make sure they
really represent the neighborhood. Our house was on the border with a
much more expensive neighborhood, so we crossed out anything that wasn't
on our side.
The seller doesn't have to accept your first offer. Don't expect them
to. Unless there is hot competition you will get a counter offer, which
will give you more information to work with. Although your realtor will
constantly pressure you (no matter how much he/she says he/she is on your
side), keep in touch with what YOU want. All money in the transaction
comes from you. Your realtor needs to please you, not the other way
around. Remember the Golden Rule: whoever has the gold makes the rules.
Good luck.
--
____ __ _____
/\ _`\ /\ \__ /\ __`\ Steve Oliveau
\ \,\L\_\ \ ,_\ __ __ __ __\ \ \/\ \ oli...@netcom.com
\/_\__ \\ \ \/ /'__`\/\ \/\ \ /'__`\ \ \ \ \
/\ \L\ \ \ \_/\ __/\ \ \_/ |/\ __/\ \ \_\ \ I am not an Angeleno.
\ `\____\ \__\ \____\\ \___/ \ \____\\ \_____\ Call me El-Alien
\/_____/\/__/\/____/ \/__/ \/____/ \/_____/
file://ftp.netcom.com/pub/ol/oliveau/wwwbookmark2.html
Ron Rothenberg
SF>Our mortgage broker here in San Francisco told us in October 1994 that
SF>houses here close at an average of 91% of listing price, according to a
SF>year's worth of records she checked.
The difficulty with averages is they're misleading. A recent study
showed that the average human being has one ovary and one testicle.
Sigh. Beware of averages. They're usually used by people who are
trying to deceive you.
I'll guarantee you that that 91% figure included homes that sold for 30%
below listing price, and homes that sold at and above listing price.
So, what does the average go to show you? Is it meaningful when applied
to a specific house? Or is it just another deceiving statistic.
SF>HOWEVER.... Based on 6 months of house-hunting in the most expensive real
SF>estate market in the Lower 48, you can get a better deal if: (1) The
SF>owner is overseas or out of state, or (2) the house is in probate and the
SF>heirs are fighting over it. Also, if the property has been a rental and
SF>is now empty, the owner may be motivated to sell because of the carrying
SF>costs of handling an empty rental for goodness knows how long.
Now you're talking strategy. I like that better than averages. You're
talking your relative power in a negotiation - that's what really
matters.
-rsr-
Ron Rothenberg
Buyer Broker/CFP (Certified Financial Planner)
HomeBase Real Estate Save time! Save money!
Belmont, MA 02178 Use a buyer broker
(617) 489-4812 when you buy a home!
Friends don't let friends use dual agents.
* SLMR 2.1a * You can say you're (excrement) out of luck!
William G. Bunton
Stavros Macrakis <macr...@osf.org> wrote:
>
>What's this "insulting" business? And how had they "lost any hope of
Just what I said. We priced the home low enough to make it sell fast.
> * What if there hadn't been any offers above 90% after another two
> months? Would you have reconsidered their 92% offer? Or would
No.
> instead lower the listing price to 92% of the original price but
> refuse new offers from the original 92% offerer? Sure, you
No, we wouldn't have lowered the price. At his offer, we would have
lost money selling the place (loan payoff plus realtor fees would have
been more than his offer).
> * What if their second offer were at 103%? Would you have ignored
> it since you had a 100% offer in hand (assuming of course that you
> hadn't accepted the 100% offer)? I have seen bidding wars where
Yes I would have ignored it. My understanding is that in Texas
bidding wars are unlawful.
> both bidders started below 100%, and the house ended up selling
> for over 100%. In your view of things, this couldn't happen,
> because both bidders would have "insulted" you.
Come on, get real.
>100% as of day 2, why didn't you go back to the two bidders and let
>them know that they had to do better to get the house? Did you have
>an agent? If so, he/she was incompetant not to get you better than
>100% under these circumstances. It sounds as though you threw away
>some thousands of dollars because of some strange perception of
>"insult".
Maybe I did lose thousands of dollars, if so I had two agents lie to
me. Otherwise, again this is unlawful in Texas. But then again, even
if we did lose some thousands of dollars, we got exactly what we
wanted -- our asking price and a quick sale.
I think I'm beginning to get the idea here. You're motiviated purely
by greed (now wait a minute, that's not meant as a flame), that wasn't
our motiviation. We told the agents we wanted to break even, and get
the place sold ASAP. We accomplished that, and even made some money
on the deal.