Post # 16
Hi there Bee, I have purchased two homes.
1) Get a new realtor. Period end. You need one that advocates for you and doesn’t suck balls. They get a cut so it’s to their benefit to not suck and do right by you. Ask friends/family, do your homework before ‘hiring’ a new one. My girl helped me sell one house and buy two. She is the sh*t. She brought furniture from her own house to help me stage so we could both ‘get that money’.
2) Stop thinking about the house emotionally. Detach yourself emotionally from the house. Now that you’ve done that. What is the house actually worth? Offer that. Then realize if the current residents are ‘offended’ it wasn’t the house for you. Do not get caught up in the trap of paying too much for something. The reality is if the house doesn’t appriase for what “they think it’s worth”, then the bank will not fund you the money. Then you get into the whole bull sh*t of paying cash over the appraisal OR walking away after dumping your time and money into getting financing for a house that’s not even worth it.
Good luck to you Bee!
Post # 17
mrsnitti17 : Don’t be worried about offending the sellers. A house is the largest financial decision most people ever make. It’s a business transaction and should be treated as such.
If the comps show the market value is 15% less than asking, then write your offer for that and not $1 more.
Post # 18
Thanks bees, this is all very helpful! I am wondering how horrible it is to dump a realtor, especially since I told her today we want to make an offer and I have heard nothing back… I dont think she is comfortable with sending in a low offer and if thats the case she isnt the one for us.
As for emotional attachement, I surprisingly am not THAT attached simply because the basics are just financial. I have a limit I will spend and thats that. I just dont want to shut down the line of communication with negotations with a low ball and of course dont want to offend and waste my time.
Post # 19
Honestly why do you care if you offend them? If you cannot afford the home at the asking price, what does it matter? Offer what you are qualified at and they either say yes or no. If they say no, no difference, you are in the same position you are in now. No harm in trying and just move on to the next if it doesn’t work.
When I bought my first home, I toured about 20, put offers on 10 (lost most of them) and got accepted for 2. The first one fell out of escrow due to the appraisal being too low, but that wouldn’t hurt you, it could only be in your favor. It took over 6 months of serious looking to find the one that stuck. I was devastated each time it didn’t work out, but the number one thing I learned was there are so many houses out there, don’t get attached. If one doesn’t work it was not meant to be and another one will be.
However, it is a bit crazy that it has been on the market for over a year! Coming from So Cal, we just sold my first home within a week to get another house we wanted. There were 3 offers within a few days, so we actually offered 15K OVER their price to make our stick. Obviously other areas of the country have a different market, but if it hasn’t sold in over a year, it makes me think there are bigger issues.. like foundation / mold / issues that would come up in inspection.
But, since you will have a contingency for the inspection, I say make the offer you can and cross your fingers! Again, what is there to lose?
Edit: I second everyone else here, get a new agent ASAP.
Post # 20
mrsnitti17 : you *can* dump a realtor, but you likely signed an agency agreement of some sort and need to cancel that before moving on to a new realtor.
Post # 21
fromatoz : I actually havent signed anything with this agent so I dont think thats an issue, I would just feel bad as she did the background with the selling agent for me
Post # 22
Where I’m at, buyer & seller agents split 6% commission. On a $433,000 home that’s $26,000. Has your realtor done anywhere near $12k worth of work to be your advocate? Just know that a drop in price means a drop in commission for your realtor.
Post # 23
Hey bees, I just want to thank everyone for thier opinions. We changed realtors to someone who we used before to look at a house and the experience is night and day! She is on it and we are putting in our offer tonight 🙂
Post # 24
Glad to hear your experience is better. My realtor did a lot of the heavy lifting in figuring out negotiation strategy and that’s what made him shine!
Post # 25
Hey Bee, glad you found a realtor that’s doing her job and being snappy about it.
I tried to post a while back about successfully lowballing an offer on an overpriced house, but the forum ate my post. Basically, house languished on the market for months because it was priced too high for having been not been substantially updated since the 1930’s (yeah, the bathroom is from the 30’s). Our agent pointed us to it after a huge price drop, and then we still lowballed the offer. Seller accepted. Glad we lowballed, because the appraisal came in slightly above what we offered, but below the final reduced list price. Ours was the first and only offer – that’s how overpriced/not updated the house was before the price cut (we put in the offer the day after the price cut, after which the listing agent said he was suddenly getting a lot more interest).
Our agent was quick about getting the offer letter in order, and advised in negotiating amounts and seller credits and stuff.
Post # 26
I say make the offer!! That is what Darling Husband and I did. I was just casually browsing homes and found one just outside of our price range.
Seller originally had it listed at 440,000 and I watched it for a few months just slowly lower in price until it was at 410.
I called my realtor and told him I wanted to offer 374,000. And he was a little hesitant but supportive. I didn’t think they would actually entertain the offer but I thought why not! He had me submit a very personal letter with my offer. It told the seller a little bit about my husband and I as well as our dogs. I talked about our jobs and what kind of people we were and our plans for a growing family. I mentioned my visions for the house. It was really thoughtful but only a page long and I included a family picture at the bottom from our engagement shoot with our pups.
The relator was shocked when the seller accepted and the sellers relator told mine that the letter played a huge part.
obviously, our seller was motivated to sell as well so I don’t think this will work every time or if a lot of people are interested in that house but it’s worth a shot!!
Post # 27
jannigirl : Just so you know, while the buyers and sellers agent split commission, they don’t get all of it. A percentage goes back to the brokerage company that the agents work out of.
mrsnitti17 : Good luck with your offer. I’m a real estate agent and I always tell my clients not to get offended by low ball offers. It’s just part of doing business. Both sides want to feel like they’re getting a deal. I also tell them big business men like Mark Cuban make low ball offers all the time with the intention on negotating. That’s just part of the process.
Now if they take your offer, that’s great. I also have to warn you though that price alone may not be the reason the property hasn’t sold yet. Many people do not want the responsibility for taking on 20 acres, especially if it’s in an area when 1 acre plots are the norm. By me, there are some places that have more acrage, but they also have well water instead of city water. Also have your agent double check to see how the land is zoned. I also agree with the Bee that said $2,000/acre is really cheap. Make sure you do all your homework to make sure this is the place you want. And if it isn’t, don’t worry, another one will come through.
Post # 28
mrsnitti17 : honestly if the house has been on the market that long with that many reductions, it means you have an unrealistic seller. You can offer them what you feel is the right price but I guarantee you they will not take it unless they are at that point where they are super desperate.
I’d put in an offer and be prepared to keep looking for another house with a more motivated seller. If it works out…Great! If it doesn’t, it was not the right house for you.
Unique houses with no comparable properties really require you to make sure you are buying at the right price. You don’t want to overpay and then be left with a house you can’t make up your costs with, if you have to sell in a hurry….
Post # 29
- Wedding: March 2014 - Chicago, IL
I was just made a lowball offer on our house for sale. Personally, I was a little offended. But, my agent told me it’s just business and I shouldn’t take it personally.
We countered her low ball offer, she countered back and we just accepted. So I would say if they buyer is motivated (which it seems like they are – it’s been listed for over a year), then you might as well try! One big thing I looked for was a buyer willing to pay their own closing costs (I know this can vary by state), so maybe ask for the price you want but don’t ask for closing help?
Post # 30
Hey Bees Update Here: We made our offer but as luck would have it someone put in an offer at the same time! We were asked to come back with our best and we did, unfortunatly we lost it because ours was conditional on selling our home. We are sad but there will be others. Thanks everyone!