lowballing

[SD Realtor]

Waiting Hawk if you look in most classified ads there are sections for housing wanted. This is pretty much what you are proposing.

I would agree with SD Realtor about multiple offers. I am as bearish as anyone here. I also rent. Yet I do notice there is an animosity in many posts against alot of sellers. Look guys, I have many sellers who really really frustrate me, however it doesn’t do me any good to ridicule them. I tell them my thoughts, I am honest and up front, and it is a drag to watch some of them do the wrong thing. I almost pity them more then anything else.

As I have posted before I have several very prudent buyers. As a rule I do not submit multiple offers because it is not as productive as most all of you are proposing. As a Realtor if I have a client that is scatter brained enough to think that yeah any one of those five homes will do for me, then that tells me that this buyer is not a serious buyer. That more then likely even if one of the sellers accepts his offer, that my buyer will flake out because during the contingency period he will find that well, I got a good price but this house is not something I really love.

Yes the market will continue to deteriorate but some posting I see are so focussed on pricing and “getting back” at all these greedy sellers that they are loosing focus. Keep your eyes on the ball guys, don’t worry, these sellers that don’t get it will all get what they deserve. By the house you really love at the best price, not the home that is priced the best.

I believe simple logic is the best way to proceed when buying a home. As sdrealtor said, let your Realtor find out as much info about the seller as possible and then you can go as low as you want. Also whether I am sending or receiving a lowball, I am always cordial with the other party’s Realtor. It always pays off in the long run.

Finally if one of my listings received an offer and the buyers agent told me, hey we have 5 offers out, I would advise my seller that in my opinion, I would shy away from this offer because of the high probability of an escrow that will be a bust. I would continue to tell my seller that my advice would be to nicely tell the agent submitting the offer to let us know if any of the other four offers came in, and if none of them did, then we will consider responding to the offer. Even with that said, I would still advise my seller that if they were going to accept or to counter, that the likelihood is high that even if we strike an agreement, it would be likely that the buyer will bail out within the contingency period.

[sdrealtor]

exactly!

[powayseller]

Is it even legal to make 5 simultaneous offers? I thought an offer requires a legal intent to execute, so that would make simultaneous offers illegal.

You could also try making an offer “firm and final, response due in 24 hours”, along with a cover letter stating, “I have 2 other houses I’m considering”. This lets the seller know while you love their house, you’ve got other options, and you will move on those if they try to counter.

Most of all, why are we even talking about offers in 2006? This conversation is for 2009. No matter what price you get today, no matter how lowball, it is still going to be 50% higher than what you would get in 2009, IMO.

[no_such_reality]

I got a good price but this house is not something I really love.

That is the inherent problem with real estate.

[an]

I don’t know about other people but price play a big role in which house I end up choosing. Also, you can’t really say you love one cookie cutter and not love the other. Of course, it it’s an older house or custom house and does not have any other like it around, then you can potentially fall in love with that one and nothing else. With that said, I’d still rather pass on the house I love and buy the house I really really like and save 10-20k. That 10-20k in 20 years could be the difference between my kid going to a great college or a community college. So bottom line is, unless you’re wealthy enough to say you’re willing to burn thousands on a house you really love rather than a house you really like, then so be it. But to me, price is also part of the equation to determine which house I love more. That’s why I decided to buy a G35 over a BMW 330Ci. Sure, I can pay more and get a little bit more, but I rather buy the G35 that is 95% of what the 330Ci is for 25% less.

[sdrealtor]

Different strokes for different folks. There are lots of things that go beyond the actual house like view, orientation (vis a vis southwest facing yard) big yard, cul de sac locations etc. that add value but which you are completely overlooking. They can and do add value. Personally I’d rather drive a cheaper car than either of your choices and put a couple hundred bucks in the bank every month than drive around in my surogate p*nis.

[an]

What does my car choice have anything to do with my p*nis size? My #1 criteria for my car was RWD and sporty with leather. I would be completely satisfied with a 240SX if they come out w/ a new one. Name me a new RWD 4 seater coupe that’s cheaper than $30k and I’d love to trade for it. So please don’t make any stereotypical comment about me unless you know my criteria for choosing my car. I would still be buying the same car if it cost me $10k. My criteria wasn’t about $ but about RWD sport coupe w/ 4 seat.
In regards to the house, I understand that those factors will affect the value of the house. However, there are also houses that’s 2-3 houses apart, having the same view or lack there of, same floor plan, same lot size, facing the same direction. Right now, I can go on ziprealty and pick out 10 house that I really like and would love to buy if the price is right and they are all in the same price range. Some have feature A,B,C that I like, while other have feature B,C,D, or A,B,D. Of course, if one that has all the features A,B,C,D that I like at the price I’m willing to pay, then that’d be my #1 choice. However, that would probably mean it’s a custom built home. None of the cookie cutter I’ve seen have everything I want.
PS, I agree with you about the upgrades. Everybody have different tastes. So not all upgrades warrant a price premium to all buyers.

[powayseller]

sdrealtor, I’ve always been told that Asian men are well built, if you know what I mean, so his car is not a surrogate of anything; as a single guy with a good paying job, he is driving what you and I can only dream about. Well, soon enough the wife and kids will come along and he then will be more concerned about a car with enough room for a baby seat and stroller in the back 🙂

Back to business. I have to agree with AN on this one. I’m not so emotional to think that there is only one house for me. But it is true that when you look at houses, you can pass so many by because they have something wrong with them. It is too old, or the neighborhood has too many junky cars, or the backyard is too small, or you can hear road noise when windows are open (that is the biggest problem in San Diego, since noise travels up and many houses are on busy streets), the houses are too close so the neighbor can see your backyard from his bedroom window, the house is too dark, the previous owners made an addition that is totally tacky and does not flow with the rest of the house, the house is priced higher to compensate for the $20K new tile they just put in for the sale and I hate it and refuse to pay for it (ditto for those cheap cabinets they put in to update the kitchen), the pool takes up the entire backyard and I’d rather have grass for my dog than the pool…So on and on it goes.

There are many homes that will fit the bill, so if you can stay detached, you can get a better deal. If you fall in love with a house, you probably will pay more to get it. With time on your side, you can get a house that meets your criteria and still pay less. That is the magic of high inventory.

[Peace]

“Submitted by powayseller on September 14, 2006 – 11:22am.
sdrealtor, Well, soon enough the wife and kids will come along and he then will be more concerned about a car with enough room for a baby seat and stroller in the back :)”

And of course at that point things do tend to become flacid and atrophy – which goes right along with the new family car! :> So I guess there is a correlation after all!

[an]

“And of course at that point things do tend to become flacid and atrophy – which goes right along with the new family car! :> So I guess there is a correlation after all!”
Not with a trusty vitamin V :).

[(former)FormerSanDiegan]

Since when did the G35 become a surrogate p*nis ?
This is a sports coupe or sedan built by Nissan (Infiniti). Not a large car. I thought that comment was limited to Hummers and Escalades and other large vehicles. Since it’s a smaller car perhaps we are to assume that you meant he is compensating for being overly endowed ?

sdrealtor I appreciate your perspective and comments and even agree with you sometimes (especially on this thread wrt reverse bidding war opinions), but that was an asinine comment !

[(former)FormerSanDiegan]

This portion of thread gives new meaning to the forum topic “lowballing”.

[sdcellar]

These posts do seem a little personal, but it is tough to reconcile when a post starts with talk of saving $10-20k and college tuition and then ends with comparisons of G5s and BMWs.

Most of us here seem to agree that real estate might be a depreciating asset over the next n-years, but I sense there’s no such division as to which way the price of a car might go.

Also, when it comes right down to it, a lot of people end up being pretty selective about a lot of things they purchase. People will buy (or not buy) something just becuase of what color it is. Things like rear-wheel drive and swimming pools are just additional variables.

Talk of bidding on 5 homes is fun and delightfully mean-spirited, but seriously, I can’t imagine finding 5 homes at the same time that I’d actually want (even with all this inventory!)

Sure, I could find plenty that I’d settle for, but why would you do such a thing in a buyer’s market? (and don’t confuse this with me saying it’s a good time to buy)

[balasr]

FormerSanDiegan wrote:

“sdrealtor I appreciate your perspective and comments and even agree with you sometimes (especially on this thread wrt reverse bidding war opinions), but that was an asinine comment !”

I think sdrealtor was just making a joke. But serious question for asinautica. You said you would buy a house 20K less, since that could make a difference to whether the kid went to a good college. Assuming you buy a house at a good price (not now) doesn’t it make more sense to do what sdrealtor is saying? At least the house has a *possibility* of appreciating at the rate of inflation over the long term. The car loses value the minute you buy it. Better to buy a honda civic or something like that and save 15K + the interest on it, no?

[sdrealtor]

Thank you Balsr,
It was a joke. It is funny though that it touched a nerve. I wonder how many of those that jumped in have rapidly depreciating sports cars in their driveways that require $250 oil changes and frequent tune ups to keep purring. It just goes to show you that everyone makes emotional decisions on something in their lives otherwise we would all be automatons.

FormerSD,
“This portion of thread gives new meaning to the forum topic “lowballing”.
That’s hysterical!

[Author]

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