When is a low offer too low?

[Effective Demand]

Have your agent pull sales in the city for the last 6 months, they can get it as a CSV. Then open that in excel and look at Sales Price / List Price for all the properties. That will give you a feel of what type of low balls are working.

Sales Price / Original List Price gives you an idea of how well people are pricing their properties.

Generally speaking, median priced homes go for around list (many REOs go for 103-105% of list because the buyers are rolling closing costs into the loans) because that is where all the demand is.

If you think of a bell curve it is usually the margins where the big price breaks off list happen. But I would say any bank owned home on market over 60-90 days is more likely to be lowballed. But usually (not always) they are pretty responsive to the market because they do BPOs and just match price at or under the market price reported by the BPOs.

[Effective Demand]

[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590

http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190

http://www.realtor.com/realestateandhomes-detail/4312-Beverly-Dr_La-Mesa_CA_91941_1107380073%5B/quote%5D

p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:

http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014

[Effective Demand]

[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590

http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190

http://www.realtor.com/realestateandhomes-detail/4312-Beverly-Dr_La-Mesa_CA_91941_1107380073%5B/quote%5D

p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:

http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014

[Effective Demand]

[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590

http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190

http://www.realtor.com/realestateandhomes-detail/4312-Beverly-Dr_La-Mesa_CA_91941_1107380073%5B/quote%5D

p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:

http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014

[Effective Demand]

[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590

http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190

http://www.realtor.com/realestateandhomes-detail/4312-Beverly-Dr_La-Mesa_CA_91941_1107380073%5B/quote%5D

p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:

http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014

[Effective Demand]

[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590

http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190

http://www.realtor.com/realestateandhomes-detail/4312-Beverly-Dr_La-Mesa_CA_91941_1107380073%5B/quote%5D

p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:

http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014

[NotCranky]

The golf analogy isn’t really that bad. It depends on what you are shooting at. You won’t likely get a low ball accepted on something everyone else is bidding on. That said I think it is best to take what the listing office is saying about traffic and offers with a grain of salt. So, only brand new listings are almost out of the realm of possibility with low-balls. Anything with market time is a candidate for 10-20% under asking bids or more.

There are occasionally properties that merit as much as 40% below asking offers, even after it has been reduced a few times.This would probably be a cash deal on a real dog.I have never gotten anything accepted more than 20% from asking but I see a good candidate for lower bids occasionally. These are properties that have problems and risks that the seller may or may not be aware of. One way or another, it is going to cost something to fix the problems. You have to point out what risks the buyer is taking that are not priced in.

When you write extreme low offers the idea is to have a good argument for it and then assume it won’t work.If you don’t get an answer and the property remains unsold, go back in a month or two to see what they think. There are one or two other threads on these kinds of offers in the archives.

[NotCranky]

The golf analogy isn’t really that bad. It depends on what you are shooting at. You won’t likely get a low ball accepted on something everyone else is bidding on. That said I think it is best to take what the listing office is saying about traffic and offers with a grain of salt. So, only brand new listings are almost out of the realm of possibility with low-balls. Anything with market time is a candidate for 10-20% under asking bids or more.

There are occasionally properties that merit as much as 40% below asking offers, even after it has been reduced a few times.This would probably be a cash deal on a real dog.I have never gotten anything accepted more than 20% from asking but I see a good candidate for lower bids occasionally. These are properties that have problems and risks that the seller may or may not be aware of. One way or another, it is going to cost something to fix the problems. You have to point out what risks the buyer is taking that are not priced in.

When you write extreme low offers the idea is to have a good argument for it and then assume it won’t work.If you don’t get an answer and the property remains unsold, go back in a month or two to see what they think. There are one or two other threads on these kinds of offers in the archives.

[NotCranky]

The golf analogy isn’t really that bad. It depends on what you are shooting at. You won’t likely get a low ball accepted on something everyone else is bidding on. That said I think it is best to take what the listing office is saying about traffic and offers with a grain of salt. So, only brand new listings are almost out of the realm of possibility with low-balls. Anything with market time is a candidate for 10-20% under asking bids or more.

There are occasionally properties that merit as much as 40% below asking offers, even after it has been reduced a few times.This would probably be a cash deal on a real dog.I have never gotten anything accepted more than 20% from asking but I see a good candidate for lower bids occasionally. These are properties that have problems and risks that the seller may or may not be aware of. One way or another, it is going to cost something to fix the problems. You have to point out what risks the buyer is taking that are not priced in.

When you write extreme low offers the idea is to have a good argument for it and then assume it won’t work.If you don’t get an answer and the property remains unsold, go back in a month or two to see what they think. There are one or two other threads on these kinds of offers in the archives.

[NotCranky]

The golf analogy isn’t really that bad. It depends on what you are shooting at. You won’t likely get a low ball accepted on something everyone else is bidding on. That said I think it is best to take what the listing office is saying about traffic and offers with a grain of salt. So, only brand new listings are almost out of the realm of possibility with low-balls. Anything with market time is a candidate for 10-20% under asking bids or more.

There are occasionally properties that merit as much as 40% below asking offers, even after it has been reduced a few times.This would probably be a cash deal on a real dog.I have never gotten anything accepted more than 20% from asking but I see a good candidate for lower bids occasionally. These are properties that have problems and risks that the seller may or may not be aware of. One way or another, it is going to cost something to fix the problems. You have to point out what risks the buyer is taking that are not priced in.

When you write extreme low offers the idea is to have a good argument for it and then assume it won’t work.If you don’t get an answer and the property remains unsold, go back in a month or two to see what they think. There are one or two other threads on these kinds of offers in the archives.

[NotCranky]

The golf analogy isn’t really that bad. It depends on what you are shooting at. You won’t likely get a low ball accepted on something everyone else is bidding on. That said I think it is best to take what the listing office is saying about traffic and offers with a grain of salt. So, only brand new listings are almost out of the realm of possibility with low-balls. Anything with market time is a candidate for 10-20% under asking bids or more.

There are occasionally properties that merit as much as 40% below asking offers, even after it has been reduced a few times.This would probably be a cash deal on a real dog.I have never gotten anything accepted more than 20% from asking but I see a good candidate for lower bids occasionally. These are properties that have problems and risks that the seller may or may not be aware of. One way or another, it is going to cost something to fix the problems. You have to point out what risks the buyer is taking that are not priced in.

When you write extreme low offers the idea is to have a good argument for it and then assume it won’t work.If you don’t get an answer and the property remains unsold, go back in a month or two to see what they think. There are one or two other threads on these kinds of offers in the archives.

[no_such_reality]

The offer is too low when someone else buys the property you want for a price you are willing to pay.

[no_such_reality]

The offer is too low when someone else buys the property you want for a price you are willing to pay.

[no_such_reality]

The offer is too low when someone else buys the property you want for a price you are willing to pay.

[no_such_reality]

The offer is too low when someone else buys the property you want for a price you are willing to pay.

[Author]

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