Forum Replies Created
-
AuthorPosts
-
sdrealtor
ParticipantWH,
Sounds like he spent alot of time in 7-11’s getting money orders. Hope he likes Slurpees;)ParticipantI have no problem with what NSR propsed and it would be alot more successful than the 5 parallel offer strategy. I’m involved in the process and have a little better perspective of what would actually work. There is nothing wrong with negotiating like a bastard. I’m all for it. I just was trying to point out that the 5 parallel offer strategy would likely not work very well.
ParticipantAN,
Pick the one you like best and negotiate the best deal you can. If you arent satisfied with the price move on. What happens when you buy a car and the rebate goes up next week or you buy a TV and it goes on sale next week. Its all part of life and you can only control so much.BTW What you are suggesting is a “reverse auction” which was attempted in numerous internet models during the hey day. To my knowledge none of them were terribly successful.
ParticipantHere’s a good analogy for Chrispy and Justme,
You apply for a job and are given an offer. The employer says that 4 other people have the same offer. You are told to quit your current job and show up for work the first day. When you show up, you are told one of you may actually get the job. How does that sound to you?ParticipantAN,
Here is the problem with submitting multiple offers vs accepting them. A seller puts his home on the market and people submit offers. How many come in is not under their control. A buyer submitting legal offers to purchase a property is falsely proposing to buy something. If everyone accepted your offer would you buy them all? Of course not! My point is that you dont need to do this to negotiate the best deal and to the contrary you will be percieved as less than desireable.Someone evaluating your offer as 1 of 5 will analyze it as a 20% chance of acceptance followed by less than a 50% chance of the you completting the purchase. Thus they are looking at the highly probable outcome of your offer (a less than 10% success rate) as undesireable. If you are going to submit multiple offeres I wouldnt tell them I was doing so, it will hurt more than help.
ParticipantJustme,
Its a two way street and sellers can be a$$h@les too. You can do what ever you like, it really doesnt matter me. If you have to get the best house, the one you really want, at the best price parallel offers wont likely get you there. If you want to have fun at someone elses expense, it will get you there.One thing that bugs me is when I hear sellers have had it so good for too long, they’ve been sticking it o buyers, its their turn to get screwed etc. It’s as if the people saying this believe that the seller is same person everytime. That’s just not the way it is. The seller could very well be someone that got caught up in multiple offers , overpaid and is trying to get out as whole as possible. They could very well be getting it on both ends.
As I said, you can do what ever you like though I’d never represent someone trying that strategy as I dont think it would work.
For the record, I have no problem with lowball offers which can be effective.
ParticipantUnfortunately there is no hard and fast rule. In my book the name of the game is getting as much information as you can and using it to your benefit. Many people would consider me ruthless in the way I negotiate as I conduct a lot of research into the seller to determine where they are and more importantly where they are going. I look for every edge I can find and use the information discreetly so as not to personally offend someone. A seller must not only want to sell at a given price but must be able to in today’s market. So if they own $500K and are asking $500K, your $400K offer is not likely to succeed as the person is more likely headed toward foreclosure or a short sale.
It’s also very important to understand that a sellers motivation does not come from where they are but rather where they are going. Learning that someone is headed for divorce (i.e. both names on title but only one’s clothes in the closet) is valuable to know. There are lots of other tricks of the trade just as valuable and that’s what my clients hire me for.
ParticipantPersonally I doubt you would have much success with 5 parallel offers. If I had someone submit something like that, I would counsel my client that this was not likely a serious buyer and wasnt really motivated to buy their property. Most people with a good piece of property would probably react the same way and what you would likely end up with is a lousy piece of property at a good price. Certainly not the optimal result if you are looking for a nice place to live. If you are looking for an investment there are better ones out there than real estate and will be for a long time to come.
The best way to handle things is to find the house you like best and negotiate firmly. You can always walk if you dont get what you want, but at least you will be taken seriously. Trying to play the strong arm 5 parallel offers is not likely to provide optimum results in my opinion. The same goes for verbal offers. Unless you are willing to put it in writing it’s pretty much an unqualified frivilous offer. There is alot more than price involved in evaluating an offer and a verbal price offer generally will be met with indignation.
There is a right and a wrong way to handle business. Much of what you are advocating is vengeful, mean spirited and most important UNNECESSARY!
Find what you like, make an offer and move on if you cant get what you want. Its that easy and will work much better. No one wants to be involved in a business transaction with an a$$h*le. Trying to be one will result in the seller psychologically charging you a price for being one.
BTW, if you choose the 5 offer path there are so many outs for a buyer in the standard purchase agreement that you could go into escrow on all 5 and walk away without financial penalty on any of them. Not an ethical thing to do but the CA RPA (California residential purchase agreement) protects you automatically for at least 17 days unless negotiated differently and until you release your contingencies in writing).
ParticipantSB,
It’s time to get your head out of the sand. If we are going to talk about a median peak then it is exactly that, the point in time when the median hits its highest level which was 11-05. There is and can be no arguement about that. August was 7% off that number plain and simple. Prices are dropping everyday and when the August escrows close they will be even lower. I have no doubt that the median YOY change for November 2006 will be in double digits.As for being accurate, we all know the median is very very skewed by lots of issues. However, I find it hard to believe that someone who is out there doing any reasonable amount of appraisal work isnt seeing 10% price drops just about everywhere. Every Realtor I talk to (and there are many) thinks we are down 10 to 15%. You were correct in another thread to surmise that individual ZIP code medians from month to month relie on too small sample sizes to have any meaning. However, a countywide monthly median based upon a few thousand sales each month does not qualify as a small sample size. Its time to stop dancing as you’ve got 2 left feet. Suggesting we use an annual median is truly laughable. Why not use a median for the decade?
ParticipantPC,
I think 350K sounds about right. I dont know how fast it will happen but expect it to be there by the end of 2008. It could come sooner.
SDRParticipantWhat do you think about that Steve “Prices will drop no more than 15%, and possibly by only 10%” Beebo?
ParticipantDont worry. All your Zip guys and gals will soon be replaced by new equally inexperienced Zip guys or gals.
September 11, 2006 at 1:33 PM in reply to: Quick Poll: Year of trough & decline from peak to trough #34978ParticipantBut this time is different than early 1990’s. This time we saw a virtual explosion in prices at the end of the peak driven by fear of rising prices and unbridled greed (if they got x, lets see if we can get x plus 25K). The biggest gains came at the end and I see no reason right now that it wont undo itself in reverse.
AS for PS’s questions as to when the peak occured for each class, its impossible to say. In Spring 2004, when most insiders believe the peak occurred there was virtually NO INVENTORY. Any comparison of current inventory levels to then is ridiculous as the roughly 3,000 homes on the market was absurdly low. There just werent many sales in alot of areas in Spring 2004. The peak price someone got for a specific property depends upon when they decided to sell and does not necessarily indicate that was the time a given property could have sold for its peak value. Its all too arbitrary.
The best you can do is ask someone who was involved in it. Trust me and anyone else around here who saw what was going on, it was absolutely NUTTY in Spring 2004. If you had the nerve to ask, you could have gotten anything you wanted back then.
RE: the boomer cashing out commnet. Boomers are just beginning top hit retirement age and shouldnt be a huge factor. Furthermore, many Boomers are going to be sitting on huge cash positions as our parents begin to pass on the enormous wealth they accumulated and conservatively invested. For example, my parents were never close to what I would consider wealthy but I will eventually inherit enough to pay off my mortgage twice. I hope it’s a long way off.
September 11, 2006 at 12:23 PM in reply to: “Secret Seconds” Raise risk of MBS default, unknown to investors #34966ParticipantDon’t new loans have to be subordinated to the primary lien holder when taken out?
-
AuthorPosts
