- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (13)
- SoCal_Engr
- Contributions:5666
If you offer less than asking, how it's perceived is going to be in the eyes of the seller - and there's nothing you can do to control their perception. Offer what you're comfortable with, and move forward from there. You could try and support/justify your offer, but that can be interpreted as either "and here's some objective support" or "rubbing salt in the wound" - all depends on perception of the seller.
If the seller doesn't respond to your 25%-below-asking offer, that doesn't mean you can't make a second offer to try to re-start negotiations. Then again, maybe there's a reason the house has been listed for 12+ months.
- Cindy Day, "cindydaygj"
- Contributions:13
Have you looked at what comparable properties have sold for in the neighborhood through Zillow, or are you familiar with what comparable properties have sold for? Many times, sellers have the property listed for what they have to have out of it to just break even - did the sellers maybe refinance the property so that now that owe more than they paid for it 10 years ago? I would write the offer and make it as clean as possible (if you are getting a loan, make sure you have done everything necessary for a timely close). If the seller rejects your first offer, you can write a new offer (if they aren't so offended they won't consider a new offer from you). In the current market, and the fact that the property has been on the market for a year, if I were the listing agent I would do everything in my power to get the seller to at least consider it.
- Mack McCoy
- Contributions:1117
Yeah, how ya gonna do that?
Sometimes, R2R, you have to compromise. I'd suggest compromising on the, "I don't want my offer considered to be a lowball," because, that's a no-brainer. It is a lowball.
If you were my client, instead of pursuing this house at 20% below asking price, I'd at least talk to you about reducing your commute. Six minutes each way per day is an hour a week - if that's a 1/2 gallon of gas per day, that's $35-$40 a month just in fuel, you can cut your mortgage by eight or nine thousand with that alone.
Not to mention the more important aspect of spending fifty waking hours a year - basically, four full days' worth of fun and games - commuting. Sure, you enjoy listening to the radio - you can do that at home, or at the beach, or at the whatever.
The other advice I would have is to pick on houses that are in your price range, because you run the risk when lowballing of actually getting the house. This one doesn't seem like a winner to you.
Sometimes, R2R, you have to compromise. I'd suggest compromising on the, "I don't want my offer considered to be a lowball," because, that's a no-brainer. It is a lowball.
If you were my client, instead of pursuing this house at 20% below asking price, I'd at least talk to you about reducing your commute. Six minutes each way per day is an hour a week - if that's a 1/2 gallon of gas per day, that's $35-$40 a month just in fuel, you can cut your mortgage by eight or nine thousand with that alone.
Not to mention the more important aspect of spending fifty waking hours a year - basically, four full days' worth of fun and games - commuting. Sure, you enjoy listening to the radio - you can do that at home, or at the beach, or at the whatever.
The other advice I would have is to pick on houses that are in your price range, because you run the risk when lowballing of actually getting the house. This one doesn't seem like a winner to you.
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2733
Quite frankly, you don't have to convince anyone on zillow that your offer is or isn't reasonable .....you have to convince the seller of that.
Is 25% below list price considered a lowball offer?
Well, to the sellers it probably is.
Bottom line however - make your offer..........no one can tell you how the sellers will respond......until they DO respond.
If the home is only worth 150,000 or 175,000 to YOU.....then see where that takes you.
Validation online, or lack thereof, isn't going to make one bit of difference.
Just out of curiosity - do you have an agent, or are you on your own?
Good luck!
Is 25% below list price considered a lowball offer?
Well, to the sellers it probably is.
Bottom line however - make your offer..........no one can tell you how the sellers will respond......until they DO respond.
If the home is only worth 150,000 or 175,000 to YOU.....then see where that takes you.
Validation online, or lack thereof, isn't going to make one bit of difference.
Just out of curiosity - do you have an agent, or are you on your own?
Good luck!
- wetdawgs
- Contributions:26842
25% off asking price is a low ball, no matter how you present it.
What can you do to justify it? Get comps of houses that have sold - data from the last couple of months would be great. Don't go just by size and rooms, but have input on the condition of the houses.
What they purchased it for 10 years is not relevant to your offer price, your offer is in 2012 and should be related to market value to 2012. By the way, inflation over the last 10 years is very close to 25%, so if you do wish to consider their purchase price please include that correction factor.
What can you do to justify it? Get comps of houses that have sold - data from the last couple of months would be great. Don't go just by size and rooms, but have input on the condition of the houses.
What they purchased it for 10 years is not relevant to your offer price, your offer is in 2012 and should be related to market value to 2012. By the way, inflation over the last 10 years is very close to 25%, so if you do wish to consider their purchase price please include that correction factor.
- Joan Braunschweiger, "Morris County NJ"
- Contributions:1543
I happen to think the more you support your offer with recent relevant market data, as well as realistic costs for necessary future or near future repairs, the more likely your offer will make sense to a reluctant seller.
I know you said it was on the market for over a year but how long has it been listed at 200k? How many price reductions have there been in a year? Any? This will indicate how flexible the seller is.
When it comes down to it, its your money, your investment and your decision as to how much its worth to you.
- Dan, "the_country_hick"
- Contributions:4699
Who gives a <bleep> if the offer is considered lowball or not?
The fact is the house is for sale and has been unable to get a buyer for a year. Go in low, offer what you think is fair and walk away if the numbers do not work for you.
As far as what the owners did for a refinance their potential stupidity in doing that is NOT your problem. It is theirs. They lived there for almost a decade with very little out of pocket loss. Look at a renter and ask how much they lost living somewhere for that amount of time.
One more thing I want you to consider. Are you going to live there for long or go somewhere else in a few short years? Buying short term can cost you a lot of money when you go to resell.
Take a look at the information in the links below. They could be of help to you.
"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."
"Why rent if you could buy for less money? Valid reasons inside."
The fact is the house is for sale and has been unable to get a buyer for a year. Go in low, offer what you think is fair and walk away if the numbers do not work for you.
As far as what the owners did for a refinance their potential stupidity in doing that is NOT your problem. It is theirs. They lived there for almost a decade with very little out of pocket loss. Look at a renter and ask how much they lost living somewhere for that amount of time.
One more thing I want you to consider. Are you going to live there for long or go somewhere else in a few short years? Buying short term can cost you a lot of money when you go to resell.
Take a look at the information in the links below. They could be of help to you.
"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."
"Why rent if you could buy for less money? Valid reasons inside."
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2733
"Who gives a <bleep> if the offer is considered lowball or not?"
well. Dan, apparently the Op does, or he wouldn't have asked the question!
well. Dan, apparently the Op does, or he wouldn't have asked the question!
- Anthony Cincotti, "Anthony Cincotti"
- Contributions:3
I would suggest contacting a Realtor in the area where you wish to purchase and ask them to pull a list of comparable homes and how much the actives are listed at and what the comps closed at.
That should aid you in determining the homes true value and give you a great position to negotiate from if the home is listed that far above market value.
If the house is priced correctly you may still be able to get a motivated seller to come down on the price somewhat, but 25% would be unlikely.
I wish you the best of luck with your real estate endeavors!
Respectfully,
Anthony
That should aid you in determining the homes true value and give you a great position to negotiate from if the home is listed that far above market value.
If the house is priced correctly you may still be able to get a motivated seller to come down on the price somewhat, but 25% would be unlikely.
I wish you the best of luck with your real estate endeavors!
Respectfully,
Anthony
- Cindy Quinton, "Cindy Quinton"
- Contributions:1323
If they are listing it with an agent, I would consider getting my own buyer's agent. At least if someone gets screamed at, it will be him/her, haha! Honestly, I fail to understand how a low-ball offer is more offensive than no offer at all. At least the seller is given the option to decline.
Also, I agree with what Mack said about reconsidering altogether due to the commute. My husband had a long commute for years, then circumstances caused us to move. It has made an extraordinary difference in the quality of our lives. We have more free time for everything, and I mean the whole family. It sickens us to think of all the wasted time for him driving and us waiting on him. That's why they say location, location, location....it's the one thing you can't change.
Also, I agree with what Mack said about reconsidering altogether due to the commute. My husband had a long commute for years, then circumstances caused us to move. It has made an extraordinary difference in the quality of our lives. We have more free time for everything, and I mean the whole family. It sickens us to think of all the wasted time for him driving and us waiting on him. That's why they say location, location, location....it's the one thing you can't change.
- sunnyview
- Contributions:25139
"It has also been listed for over a year, which makes me think it might be hard to resell if I need to."
If you are thinking about the commute now, other buyers will likely think of that when you go to resell. The condition of the house and the commute distance may be two reasons that it has been on the market a long time. I would ask your agent if they can get you a list of sales in that area in the last 3-5 months depending on how many have sold in your area.
It sounds like the main consideration for you on this house is price, so you need to find out if your offer amount has a basis in fact or not. Beyond that, you have to decide is commuting is something that you really want to do everyday. Personally, I would probably opt for a different or smaller house with a shorter commute unless the price can be made cheap enough so that you can rent it out and move closer in down the line.
If you are thinking about the commute now, other buyers will likely think of that when you go to resell. The condition of the house and the commute distance may be two reasons that it has been on the market a long time. I would ask your agent if they can get you a list of sales in that area in the last 3-5 months depending on how many have sold in your area.
It sounds like the main consideration for you on this house is price, so you need to find out if your offer amount has a basis in fact or not. Beyond that, you have to decide is commuting is something that you really want to do everyday. Personally, I would probably opt for a different or smaller house with a shorter commute unless the price can be made cheap enough so that you can rent it out and move closer in down the line.
- Caveat Emptor
- Contributions:500
if its been on the market for a year, you also have the possibility that the sellers can't drop their price because they took an HELOC out to buy a new car or pay for college or something. even if its a fair offer, they might not be willing to come down off of their 200k number (and so it sits)
its just a thought, but try not to buy a house AND their new car(unless you get the car).
its just a thought, but try not to buy a house AND their new car(unless you get the car).
- Gary May, "RealtorTampaBay"
- Contributions:56
Offer what you feel most comfortable with as it relates to comparabe sales in that neighborhood. Keep in mind that if you're geeting a mortgage loan, the home will have to appraise at the agreed to sales price in order for you the get the loan and close on the transaction. The appraisal is your safety net to prevent you from over paying in the negotiations.
Offer advice--want to make an offer 50k below list but don't want it to be considered a lowball
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.