The way I see it Ray. If you don’t have the need or desire to get the 10%-20% discount and I come in and get it the day after you politely pay full price you are 10%-20% upside down and I politely smile at you when I see you.BTW comps don’t actually adjust directly to a low- ball.
You are correct to assume that if a federal case were made up it would be hard to prove a discount was actually obtained. I think I know when I,or my clients,get a break.
Sweat equity is a separate issue Imho,but again it would be hard to prove what percentage of equity came from the low-ball, improvements or the market.I say, why take chances? Since I value the deal more than the particular house I might as well go for as many factors on my side as I can get. As you say it takes a different skill set than most have (and a favorable market) to really garner sweat equity but anyone,with some patience, could go after a bigger than average reduction on the list price. Tt doesn’t make the discount less real just because only one in ten sellers is amenable to the idea, especially in a market like this.”Must buy” buyers could be looking for the seller who is ready to capitulate. Better than buying from the one that isn’t.