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Replies (26)
What area is this? And of course that all depends on if they listed with a reasonable price. Some of these listing price are so unrealistic, you would be foolish to offer anymore more than 70% of listing.
"I can't afford to sell below what I paid in 2006 because I would go broke."
- drj9
- Contributions:123
In my area Monterey county the banks are in charge of the forclosure market and the resale is non existent. I have bidded around 75-80% of asking with only luke-warm attention because of bidding wars. But those who want 2006 prices are trying to hang on, but Iam not paying 600+K for a 300K house. In other words 950k is fair even with less down hey an offer is an offer.
- retrogameroom.com
- Contributions:215
You are looking for a “Black & White” answer to a Grey question. Our house just sold for the asking price. We listed our house for a price in the middle of the local competitions’ price. Our first offer was a “Low Ball” offer and their Realtor used your logic. Her buyer missed out on the home that they “Wanted”. Apparently she told them to wait us out and she was certain our price would go down. Well about a week later we had multiple offers.
I know I rambled on but my point is that if the house you are looking at is new to the market, nicer than all the competition and priced about the same or less you may not want to submit a low offer if you really want that home. We priced our house to sell and not at a 2006 price because we had to move. Real Estates Agents say many things but one that is 100% true is that all markets are different.
Buying a house is not like buying a car. No two pieces of real estate are identical.
- califemme
- Contributions:171
I live in the bay area...Walnut Creek/Lamorinda/Alamo area, and I still think things are priced a little high here and sitting around for awhile.
We are renting, but thinking about starting to look to buy again...it seems like prices have come down a little here, but not enough. It also seems like the listing prices vs. sales prices are not the same.
- drj9
- Contributions:123
I agree with Retro do not low ball but bid for yourself not the agents or the sellers if you really like the house then offer 950K all they can say is no. If the home is just perfect after you have given it some though then maybe you can raise your bid or adjust the terms of the offer but do not worry about the seller's feelings its bussiness. Remember no two houses are the same but another great home is just around the corner if you do not get this one :)
- silent_observer
- Contributions:1603
lucky, marci is the best agent to answer your questions for this area. if i were you i'll email marci.
- silent_observer
- Contributions:1603
also, there are some really best deals available in concord which is very close to the areas you are looking at. prices are rock bottom there but it is somewhat blue collar area so you decide.
- 2 Big 2 Fail
- Contributions:0
Lowball offers don't work, even in this market. If you think that the $1.2 million house you like is going to be worth $900k one day, then wait for the price to fall to $900k. Buyers who lowball are expecting to pay tomorrow's prices today and you cannot have your cake and eat it too.
- drj9
- Contributions:123
I must say there is room for some "lowballing" but I would consider lowballing around 70% or less of either asking or comp. Low balling doesn't hurt anyone. But do not expect the seller to jump for joy. REMEMBER it is only worth what someone is willing to pay for it.
- 2 Big 2 Fail
- Contributions:0
Lowball offers are a waste of time. In my area, less than 3% of all the sales are lowball sales. LESS THAN 3%.
- Hate
- Contributions:300
Overprices properties are a waste of time, hence no one is looking to buy.
- Hate
- Contributions:300
Overpriced*
- drj9
- Contributions:123
I just agree that some homes are overpriced. it is nearly a waste of time. I offered for a home back in June 315K Asking was 360K I was told verbally(over the phone ofcourse) that it was too little. I demanded a written-counter which finally came to me at 355K. The agent told me that it was the best they could do and that I was low-balling. Well today I got an email that it is new to the market(Yea right) and now its 325K. Agents wil use the agressive car sales stalling when you make a low offer because they want to preasure weak buyers, I dealt with several agents and I can tell which ones are do not have your intrest in mind because they get pissed when you do not offer what they want.
- drj9
- Contributions:123
With the sophicated tactics and pitfalls buyers should inform themselves big time. Having an agent who is an old timer is great but make sure they are not too old to miss oppurnitties for you. My first home I bought on a hand shake with the seller, we then went to the title company and delt it there. The process was smooth but this was in 2003 so times are diffrent infact there seems to be too much in between buyers and sellers anymore to make a cheap fair deal
- James Peterson, "jpeters32"
- Contributions:48
Great deals happen, they are usually not listed for sale on the local MLS. If you are looking for a great deal for investment purposes there are many ways to find great deals but it takes a lot of work. If you are looking to buy a home, rather than invest, then you need to find out what comparable homes are actually selling for in the last couple of months. If the home is already priced very well you could be wasting your time with an offer much lower than list. Best strategy is to talk with the realtor to find out how motivated the seller is and see if there is any room for negotiation if you really like the house.
Luckygrllll, My advice is sit tight. The market in your area (same area I spend a lot of time watching) has not come to grips with the reality of the economy. The next phase of mortgage failures will take down prices a few more notches. My guess is that the people that are listing at $1.2M will be listing at $1M in a year and lucky if they get $800K. Hope you and your baby are doing well. Boy or girl??
- califemme
- Contributions:171
I have a girl. She is 3 months old now. We rented a house in Walnut Creek, and now we feel like we want to be homeowners again. It does seem like the inventory is higher, prices are being cut more frequently, and stuff is sitting around longer, especially in Danville and Walnut Creek. Alamo and Lafayette have more inventory, but still nothing decent for the price. I am also seeing homes that have been taken on and off the market several times over the past year with very slight price reductions each time...like 25k...nothing substantial.
Congratulations! Little girls are the so much fun!! I have two and they are the light of my life.
I see the same thing on the market. Right now there is really nothing out there that I think is priced correctly. I have seen 2 or 3 houses all summer that were priced right and sold for what I think is still overpriced. There is no hurry. The longer you wait the better prices will get. We are at 2004-5 prices right now. It has a ways to go. I would like nothing better than to have my own house right now but my husband keeps reminding me that at these prices we will probably loss $200K in a year (that is the decline this past year.)
- silent_observer
- Contributions:1603
akka, 200K decline depends on where you buy, what you buy. lucky, i would suggest you to shop around heavily but don't buy. narrow down to a handful of neighborhoods where you can see yourself living there and start making really lowball offers. a friend of mine attended an open house and you know what the agents were stupid. they listed a house in an excellent neighborhood for a really low price and it got sold very quick. it happens when agents are dumb. they simply don't know what they have and endup giving things away. find a few places and see what is the rent vs buy for those areas. don't blindly listen to akka. do your own research. don't rely on a realtor but keep looking every day and attend open houses immediately when the homes hit the market. homes priced right a FLYING with multiple offers. rental market is NUTS rightnow. i hope it slows down after school time. rents are going up like anything and most likely the places you buy now will catch up with rents by end of year. good luck.
- mickee
- Contributions:380
If you find a house you like, write a letter to the owner and tell them how you love their home, ask for the lowest offer they are willing to accept for the property.
Silent_observer, I have seen a dozen houses in my area drop $200K over the last year. People in this area don't list at a realistic price and very few sell. When you are looking at houses in the 1M-1.5M range, a 200K drop is not unusual at all. There are a lot of forclosures that have not hit the market in the high end areas of the East Bay that will drive down prices over the next year. The current sellers are in denial. If you have a good rental right now, it is crazy to buy in this area of the Bay Area.
I thought the depreciation would have ended quite some time ago down here. It stabilized for quite a while but then has started up again .
- Jeanne Feenick, "www.feenick.com"
- Contributions:350
In our area, homes are selling between 1-5% of list when they are priced properly. In most cases, it is taking 3-4 price reductions to get there. My advice to sellers is to price it right from the get go and when I convince them we sell within that same margin - just quickly.
You need to evaluate the home you are considering based on the comps - you've got access to great information either directly online or via the a good realtor.
As educated as buyers are these days, I find that they recognize a fairly priced home and pass over overpriced ones. Low ball bids on overpriced homes usually just give the listing agent ammunition for a price reduction he/she should have recommended long before.
Good luck.
- urge
- Contributions:207
As of today I would be shooting for 25% off. Take it or leave it.
- Mark Brian, "markbrian"
- Contributions:355
Overpriced, days on market, comps from reliable sources, tax records, seller motivation, history of listing agent-all factor into what to make as a serious offer. But the worse the seller can do is say no, but the seller may be so pissed they do not counter. Lately, I have had my butt chewed out for submitting lowball offers from other agents, but if it is on paper I have to submit by law, so I do. And what the seller turns their nose up at today, they may be glad to get in 6 months! I advise most sellers if you need to sell and this gets you what you have to have, you better take it in this market, there may not be another offer. But if they do not have to sell, keep waiting.
Look at the type of financing the seller used to buy the house. Alt-A? Zero Equity? Sub-prime? They don't have much choice but to sell.
what are people bidding these days?
With the increase in mortgage rates, what percentage off list price are people offering now? For example, in my area, if people list for 1.2MM is it fair to offer 950k or 1MM with 20% down?
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