Low ball offers. Yes they are out there. Using your best judgment (or your Realtor’s) can be determined on many factors. How long has it been on the market? Is it a short sale, bank owned, or a genuine seller who has (gulp) equity? What are the other neighborhood comparables selling for? Did the seller already buy another home? The list goes on. Calculations galore go into establishing the list price by the listing agent from the get-go (one would assume).
Imagine for a second you’ve been cruising around the Cooper Jacobs website for Green Lake homes listed between $500,000 and $550,000 because that’s what you’ve been pre-qualified for. You see it! This classic bungalow priced at $535,000 competitively with the type of floor plan and neighborhood you desire…just needs a little tweaking here and there. 60 days on the market with no price drop yet. What price do you offer? You know you want it but you also want a good deal and don’t want to buy into dropping values.
This is the moment I usually ask the buyer “how much do you want it?”. We both know he can afford it. It’s $15,000 under his top range. There does need a little work to be done to the place. How do you reason what’s low and too low?
You would think the seller has priced his home aggressively competitive. He still knows he’ll have to negotiate a little on price – plus don’t forget he has selling expenses that can shave off his net proceeds.
Buyer goes in low - close to be offending. Seller counters because - hey there aren’t any other offers, why not? Buyer comes back and they meet in the middle! Okay, in a perfect world that would be great and sometimes it works!
Look, not every home for sale is going to sell 10…or 15% below list price. There are plenty of homes that are selling at near full price. Just be ready to meet in the middle if needbe and let’s try to sustain our home values at the same time.
By the way, the buyer put in an offer for $520,000 and they both signed off on $528,000.
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