[raptorduck]

FLU. I don’t know how the market is holding up in SF proper. On the penninsula it is not dropping all that much the the areas I would look in. There are “LOTS” of sticky sellers in those areas and many homes have been on the market for over a year with not a single price drop. In Los Altos hills, a 50 yr old 4,500sf house will still cost you $4-$5M. In San Jose, where I live, prices have come down quite a bit in areas, including my own. Still much higher than SD though, much higher.

ILCV. My realtor is holdling up about as bad as my wife, who is not speaking to me at the moment. Times are tough for realtors, and she is no exception. I did promise her I will stick with her until the end though.

Asragov. I have not started looking for rentals yet. We have some time. Don’t even know where to start. A 3-4br house in CV will do just fine for now.

[raptorduck]

FLU. I don’t know how the market is holding up in SF proper. On the penninsula it is not dropping all that much the the areas I would look in. There are “LOTS” of sticky sellers in those areas and many homes have been on the market for over a year with not a single price drop. In Los Altos hills, a 50 yr old 4,500sf house will still cost you $4-$5M. In San Jose, where I live, prices have come down quite a bit in areas, including my own. Still much higher than SD though, much higher.

ILCV. My realtor is holdling up about as bad as my wife, who is not speaking to me at the moment. Times are tough for realtors, and she is no exception. I did promise her I will stick with her until the end though.

Asragov. I have not started looking for rentals yet. We have some time. Don’t even know where to start. A 3-4br house in CV will do just fine for now.

[raptorduck]

FLU. I don’t know how the market is holding up in SF proper. On the penninsula it is not dropping all that much the the areas I would look in. There are “LOTS” of sticky sellers in those areas and many homes have been on the market for over a year with not a single price drop. In Los Altos hills, a 50 yr old 4,500sf house will still cost you $4-$5M. In San Jose, where I live, prices have come down quite a bit in areas, including my own. Still much higher than SD though, much higher.

ILCV. My realtor is holdling up about as bad as my wife, who is not speaking to me at the moment. Times are tough for realtors, and she is no exception. I did promise her I will stick with her until the end though.

Asragov. I have not started looking for rentals yet. We have some time. Don’t even know where to start. A 3-4br house in CV will do just fine for now.

[raptorduck]

FLU. I don’t know how the market is holding up in SF proper. On the penninsula it is not dropping all that much the the areas I would look in. There are “LOTS” of sticky sellers in those areas and many homes have been on the market for over a year with not a single price drop. In Los Altos hills, a 50 yr old 4,500sf house will still cost you $4-$5M. In San Jose, where I live, prices have come down quite a bit in areas, including my own. Still much higher than SD though, much higher.

ILCV. My realtor is holdling up about as bad as my wife, who is not speaking to me at the moment. Times are tough for realtors, and she is no exception. I did promise her I will stick with her until the end though.

Asragov. I have not started looking for rentals yet. We have some time. Don’t even know where to start. A 3-4br house in CV will do just fine for now.

[raptorduck]

FLU. I don’t know how the market is holding up in SF proper. On the penninsula it is not dropping all that much the the areas I would look in. There are “LOTS” of sticky sellers in those areas and many homes have been on the market for over a year with not a single price drop. In Los Altos hills, a 50 yr old 4,500sf house will still cost you $4-$5M. In San Jose, where I live, prices have come down quite a bit in areas, including my own. Still much higher than SD though, much higher.

ILCV. My realtor is holdling up about as bad as my wife, who is not speaking to me at the moment. Times are tough for realtors, and she is no exception. I did promise her I will stick with her until the end though.

Asragov. I have not started looking for rentals yet. We have some time. Don’t even know where to start. A 3-4br house in CV will do just fine for now.

[raptorduck]

In this market, I consider “low ball” to be anything under 90% of asking. I never offer less than 80% of asking. That is a waste of time IMHO.

But asking has many flavors. If the house has been on the market >90 days, asking is “likely” to be more reasonable with respect to market conditions. If it is just on the market, it is far less “likely” to be reasonable. There are exceptions, of course. Sticky fickle sellers.

But an 80% offer on a house just on market is a waste typically. You do help the seller get a feeling for market conditions. An offer like that can help with that, but it would not help you, the buyer, get the house. At least with that round and if you do piss them off with it, when you do come back after they have come to their senses, they may, out of irrational seller pride, refuse to deal with you. You have to time your insults in this game, for when they hurt you the least.

But an 80% offer on a house 250 days on market is a different story. However, if it has had price reductions along the way and is close to market, maybe a 90% offer is more appropriate.

Either way, the offer should have logic as to your desire to purchase the house. If I love a house, I am close to 90% every time for the types of homes I go after, usually on market for a while with a few price reductions. That way, your 90% offer may be 70% of original asking.

I note that the really great great houses don’t stay on the market very long, even in this market. I lost one recently that was on market 2 weeks with 4 offers because I refused to break my 90% rule, but the price it sold for was just $50k more than I offered and worth it, even in this market. I made a mistake doing that, the only mistake I fell I have made after nearly a dozen offers. Not bad it seems, but it only takes one mistake to feel like a complete idiot.

So low ball is relative and I certainly no longer worry about pissing anybody off. I put as much logic behind my offers as I can and if that pisses a seller off, it is my fault for not anticipating that. I should make an offer that I know the seller will consider, not that he/she will tell me to shove. There is a way to low ball with kindness, which is often found in the form of objective evidentiary support for your unkind solicitation. Some sellers do respond to logic and reason, some.

Just my 2 cent.

[raptorduck]

In this market, I consider “low ball” to be anything under 90% of asking. I never offer less than 80% of asking. That is a waste of time IMHO.

But asking has many flavors. If the house has been on the market >90 days, asking is “likely” to be more reasonable with respect to market conditions. If it is just on the market, it is far less “likely” to be reasonable. There are exceptions, of course. Sticky fickle sellers.

But an 80% offer on a house just on market is a waste typically. You do help the seller get a feeling for market conditions. An offer like that can help with that, but it would not help you, the buyer, get the house. At least with that round and if you do piss them off with it, when you do come back after they have come to their senses, they may, out of irrational seller pride, refuse to deal with you. You have to time your insults in this game, for when they hurt you the least.

But an 80% offer on a house 250 days on market is a different story. However, if it has had price reductions along the way and is close to market, maybe a 90% offer is more appropriate.

Either way, the offer should have logic as to your desire to purchase the house. If I love a house, I am close to 90% every time for the types of homes I go after, usually on market for a while with a few price reductions. That way, your 90% offer may be 70% of original asking.

I note that the really great great houses don’t stay on the market very long, even in this market. I lost one recently that was on market 2 weeks with 4 offers because I refused to break my 90% rule, but the price it sold for was just $50k more than I offered and worth it, even in this market. I made a mistake doing that, the only mistake I fell I have made after nearly a dozen offers. Not bad it seems, but it only takes one mistake to feel like a complete idiot.

So low ball is relative and I certainly no longer worry about pissing anybody off. I put as much logic behind my offers as I can and if that pisses a seller off, it is my fault for not anticipating that. I should make an offer that I know the seller will consider, not that he/she will tell me to shove. There is a way to low ball with kindness, which is often found in the form of objective evidentiary support for your unkind solicitation. Some sellers do respond to logic and reason, some.

Just my 2 cent.

[raptorduck]

In this market, I consider “low ball” to be anything under 90% of asking. I never offer less than 80% of asking. That is a waste of time IMHO.

But asking has many flavors. If the house has been on the market >90 days, asking is “likely” to be more reasonable with respect to market conditions. If it is just on the market, it is far less “likely” to be reasonable. There are exceptions, of course. Sticky fickle sellers.

But an 80% offer on a house just on market is a waste typically. You do help the seller get a feeling for market conditions. An offer like that can help with that, but it would not help you, the buyer, get the house. At least with that round and if you do piss them off with it, when you do come back after they have come to their senses, they may, out of irrational seller pride, refuse to deal with you. You have to time your insults in this game, for when they hurt you the least.

But an 80% offer on a house 250 days on market is a different story. However, if it has had price reductions along the way and is close to market, maybe a 90% offer is more appropriate.

Either way, the offer should have logic as to your desire to purchase the house. If I love a house, I am close to 90% every time for the types of homes I go after, usually on market for a while with a few price reductions. That way, your 90% offer may be 70% of original asking.

I note that the really great great houses don’t stay on the market very long, even in this market. I lost one recently that was on market 2 weeks with 4 offers because I refused to break my 90% rule, but the price it sold for was just $50k more than I offered and worth it, even in this market. I made a mistake doing that, the only mistake I fell I have made after nearly a dozen offers. Not bad it seems, but it only takes one mistake to feel like a complete idiot.

So low ball is relative and I certainly no longer worry about pissing anybody off. I put as much logic behind my offers as I can and if that pisses a seller off, it is my fault for not anticipating that. I should make an offer that I know the seller will consider, not that he/she will tell me to shove. There is a way to low ball with kindness, which is often found in the form of objective evidentiary support for your unkind solicitation. Some sellers do respond to logic and reason, some.

Just my 2 cent.

[raptorduck]

In this market, I consider “low ball” to be anything under 90% of asking. I never offer less than 80% of asking. That is a waste of time IMHO.

But asking has many flavors. If the house has been on the market >90 days, asking is “likely” to be more reasonable with respect to market conditions. If it is just on the market, it is far less “likely” to be reasonable. There are exceptions, of course. Sticky fickle sellers.

But an 80% offer on a house just on market is a waste typically. You do help the seller get a feeling for market conditions. An offer like that can help with that, but it would not help you, the buyer, get the house. At least with that round and if you do piss them off with it, when you do come back after they have come to their senses, they may, out of irrational seller pride, refuse to deal with you. You have to time your insults in this game, for when they hurt you the least.

But an 80% offer on a house 250 days on market is a different story. However, if it has had price reductions along the way and is close to market, maybe a 90% offer is more appropriate.

Either way, the offer should have logic as to your desire to purchase the house. If I love a house, I am close to 90% every time for the types of homes I go after, usually on market for a while with a few price reductions. That way, your 90% offer may be 70% of original asking.

I note that the really great great houses don’t stay on the market very long, even in this market. I lost one recently that was on market 2 weeks with 4 offers because I refused to break my 90% rule, but the price it sold for was just $50k more than I offered and worth it, even in this market. I made a mistake doing that, the only mistake I fell I have made after nearly a dozen offers. Not bad it seems, but it only takes one mistake to feel like a complete idiot.

So low ball is relative and I certainly no longer worry about pissing anybody off. I put as much logic behind my offers as I can and if that pisses a seller off, it is my fault for not anticipating that. I should make an offer that I know the seller will consider, not that he/she will tell me to shove. There is a way to low ball with kindness, which is often found in the form of objective evidentiary support for your unkind solicitation. Some sellers do respond to logic and reason, some.

Just my 2 cent.

[raptorduck]

In this market, I consider “low ball” to be anything under 90% of asking. I never offer less than 80% of asking. That is a waste of time IMHO.

But asking has many flavors. If the house has been on the market >90 days, asking is “likely” to be more reasonable with respect to market conditions. If it is just on the market, it is far less “likely” to be reasonable. There are exceptions, of course. Sticky fickle sellers.

But an 80% offer on a house just on market is a waste typically. You do help the seller get a feeling for market conditions. An offer like that can help with that, but it would not help you, the buyer, get the house. At least with that round and if you do piss them off with it, when you do come back after they have come to their senses, they may, out of irrational seller pride, refuse to deal with you. You have to time your insults in this game, for when they hurt you the least.

But an 80% offer on a house 250 days on market is a different story. However, if it has had price reductions along the way and is close to market, maybe a 90% offer is more appropriate.

Either way, the offer should have logic as to your desire to purchase the house. If I love a house, I am close to 90% every time for the types of homes I go after, usually on market for a while with a few price reductions. That way, your 90% offer may be 70% of original asking.

I note that the really great great houses don’t stay on the market very long, even in this market. I lost one recently that was on market 2 weeks with 4 offers because I refused to break my 90% rule, but the price it sold for was just $50k more than I offered and worth it, even in this market. I made a mistake doing that, the only mistake I fell I have made after nearly a dozen offers. Not bad it seems, but it only takes one mistake to feel like a complete idiot.

So low ball is relative and I certainly no longer worry about pissing anybody off. I put as much logic behind my offers as I can and if that pisses a seller off, it is my fault for not anticipating that. I should make an offer that I know the seller will consider, not that he/she will tell me to shove. There is a way to low ball with kindness, which is often found in the form of objective evidentiary support for your unkind solicitation. Some sellers do respond to logic and reason, some.

Just my 2 cent.

[raptorduck]

In my experience, builders are easiser to lowball than REO banks. It all comes down to how many buyers are looking at those houses and how long the builder has been carrying them. I think builders are the group most likely to respond favorably to low ball offers. They are not emotionally attached to the home, they need to turn inventory. Their financial performance is measured in part by inventory turnover.

One thing to realize about the builder is that your low ball offer will impact his other homes in the area. So, get creative. Are there things you can ask the builder to pay for, such as closing costs or Mello Roos tax, that won’t lower the comps for his other homes too much? Those things can effectively lower the price you are paying while preserving his comps at the same time, not to mention your own after you buy. To that end, a builder will rather give you more upgrades than lower the price if he has lots of homes still in the area to sell. You can use that to your advantage as well.

[raptorduck]

In my experience, builders are easiser to lowball than REO banks. It all comes down to how many buyers are looking at those houses and how long the builder has been carrying them. I think builders are the group most likely to respond favorably to low ball offers. They are not emotionally attached to the home, they need to turn inventory. Their financial performance is measured in part by inventory turnover.

One thing to realize about the builder is that your low ball offer will impact his other homes in the area. So, get creative. Are there things you can ask the builder to pay for, such as closing costs or Mello Roos tax, that won’t lower the comps for his other homes too much? Those things can effectively lower the price you are paying while preserving his comps at the same time, not to mention your own after you buy. To that end, a builder will rather give you more upgrades than lower the price if he has lots of homes still in the area to sell. You can use that to your advantage as well.

[raptorduck]

In my experience, builders are easiser to lowball than REO banks. It all comes down to how many buyers are looking at those houses and how long the builder has been carrying them. I think builders are the group most likely to respond favorably to low ball offers. They are not emotionally attached to the home, they need to turn inventory. Their financial performance is measured in part by inventory turnover.

One thing to realize about the builder is that your low ball offer will impact his other homes in the area. So, get creative. Are there things you can ask the builder to pay for, such as closing costs or Mello Roos tax, that won’t lower the comps for his other homes too much? Those things can effectively lower the price you are paying while preserving his comps at the same time, not to mention your own after you buy. To that end, a builder will rather give you more upgrades than lower the price if he has lots of homes still in the area to sell. You can use that to your advantage as well.

[raptorduck]

In my experience, builders are easiser to lowball than REO banks. It all comes down to how many buyers are looking at those houses and how long the builder has been carrying them. I think builders are the group most likely to respond favorably to low ball offers. They are not emotionally attached to the home, they need to turn inventory. Their financial performance is measured in part by inventory turnover.

One thing to realize about the builder is that your low ball offer will impact his other homes in the area. So, get creative. Are there things you can ask the builder to pay for, such as closing costs or Mello Roos tax, that won’t lower the comps for his other homes too much? Those things can effectively lower the price you are paying while preserving his comps at the same time, not to mention your own after you buy. To that end, a builder will rather give you more upgrades than lower the price if he has lots of homes still in the area to sell. You can use that to your advantage as well.

[raptorduck]

In my experience, builders are easiser to lowball than REO banks. It all comes down to how many buyers are looking at those houses and how long the builder has been carrying them. I think builders are the group most likely to respond favorably to low ball offers. They are not emotionally attached to the home, they need to turn inventory. Their financial performance is measured in part by inventory turnover.

One thing to realize about the builder is that your low ball offer will impact his other homes in the area. So, get creative. Are there things you can ask the builder to pay for, such as closing costs or Mello Roos tax, that won’t lower the comps for his other homes too much? Those things can effectively lower the price you are paying while preserving his comps at the same time, not to mention your own after you buy. To that end, a builder will rather give you more upgrades than lower the price if he has lots of homes still in the area to sell. You can use that to your advantage as well.

[Author]

Posts