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 Best way to negotiate crappy offer on house?

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riskyfreedeal
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PostPosted: Wed Aug 26, 2009 1:49 pm Reply with quoteBack to top

We put our house on the market at $144,900 which is very fair for the market considering the number of extras (finished basement, security system, sprinkling system, etc.), and according to our agent. We got an offer last night at $125,000. I was sort of insulted, really. Where should we go with this? I think $140,900 is the absolute lowest we'd consider going. How do you proceed?

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JMRazor
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PostPosted: Wed Aug 26, 2009 1:58 pm Reply with quoteBack to top

Depending on how "desperate" you are, I would decline the offer with no counter. That shows you don't consider the offer to be a serious one. Your realtor will of course beg you to respond with something because closing any sale is more important to a realtor than achieving incremental increases in value.

Because your "floor" is only about $5k below your listing price, you have little room to move while the potential buyer has set himself up with $15-20k of negotiating leverage. I would make the buyer bid against himself. If he really is interested, he will come back; if not, then don't waste your time. In a market like we have today, the first offer is rarely the best one.

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Tastysnack
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PostPosted: Wed Aug 26, 2009 3:13 pm Reply with quoteBack to top

Like Razor said. Just reply with a curt 'NO'.

Same happened to me when we sold our first home. People are just looking for desperate sellers. If your not desperate, don't play the game.

Hold out for other offers.

Did you get the cat piss smell taken care of? That might hurt you more than you think.

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Stander
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PostPosted: Wed Aug 26, 2009 3:27 pm Reply with quoteBack to top

Same with me. Tried to sell an estate, and buyer offered me only 70% of my price.
Never sell at low prices. If you ain't hurry, just wait.

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PostPosted: Wed Aug 26, 2009 3:31 pm Reply with quoteBack to top

Wow, sounds like a nice place! I third that you should just shut it down. Be aware that it is very much a buyers maket now, and this can lead to acts of desaration by homeowners who need to sell. The advice given on the level of need is very valid. I have seen people settle for far less than what they need lately.

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Connie L. Gus
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PostPosted: Wed Aug 26, 2009 4:46 pm Reply with quoteBack to top

Prices are going up in our area and lowball bidders are losing on bidding wars with the winners walking away with full price offers. If the place is properly priced and it sounds like it is, take JMRazor's advice and don't lose any sleep over it. Its funny, other than the downturn in prices, what I read about in the papers and what is happening locally are very different.

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riskyfreedeal
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PostPosted: Wed Aug 26, 2009 5:11 pm Reply with quoteBack to top

I agree. I think we are going to counter like $1K less than our asking price to let her know we are serious about the price. The part that sucks is we have our eyes on another house that we'd like to get into, but the longer we sit, the less likely it is that will happen. Still, we can't lose our ass.

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"SEND TO THIS BANK FOR THE TRANSFER PROCESS SINCE YOU KNOW HO MUCH THAT IS INVOLVED IT IS NOT PEENUT"

"It will be administered in acordance with strict rules and regulations known as "Rules of Incestacy." - Ian R33d

"LOOK MR MAN, WE DON'T HAVE ANY BUSINESS TO DO WITH MR. G0MER WHAT KIND OF HUMANBEN ARE YOU THAT WILL BE SO KEALESS AS YOU ARE."

"FOR CHRIST SAKE WE NEVER ASK YOU TO MAKE ANY TRANSACTION VIA WESTERN UNION S3CURE SH1ELD!"

"You are making the whole thing hard for your self"

"You call me for any other moral Discusion"

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Stander
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PostPosted: Wed Aug 26, 2009 5:25 pm Reply with quoteBack to top

^^ Why not try to get a loan (a real one Very Happy) with your house at collateral. you'll have the cash to buy the other house, then let the bank to sell your house? worked for a friend of mine

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Tastysnack
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PostPosted: Wed Aug 26, 2009 6:07 pm Reply with quoteBack to top

riskyfreedeal wrote:
I agree. I think we are going to counter like $1K less than our asking price to let her know we are serious about the price.


NO! Just counter with "NO". They know it's not a serious offer. If you give an inch, they will just keep hounding you. They are not interested in negotiations. They want a distressed seller. Not a 'good deal'.

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Slightlyoutofit
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PostPosted: Wed Aug 26, 2009 7:11 pm Reply with quoteBack to top

Like the others here, I say just counter with a simple and firm "No" to the buyer.

Tell the estate agent the minimum price that you are willing to consider and make sure that he knows that you won't go any lower. Tell him not to bother coming to you with any offer less than your $140,900.

If any buyer really wants the house, he will find the extra cash to pay for it. Stick to your guns.

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suckemsillysheri
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PostPosted: Wed Aug 26, 2009 8:07 pm Reply with quoteBack to top

Is it legal to require the buyer to submit a letter of qualification proving that the buyer can get the loan from the bank? A pre-approval type letter?

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JMRazor
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PostPosted: Wed Aug 26, 2009 8:36 pm Reply with quoteBack to top

Slightlyoutofit wrote:
Tell the estate agent the minimum price that you are willing to consider and make sure that he knows that you won't go any lower. Tell him not to bother coming to you with any offer less than your $140,900.


I treat my realtor as, at best, an interested third party, and at worst, as the enemy. If you tell your realtor what your minimum price is s/he will be sure to work behind the scenes to get a bid to that minimum. Think about this, a typical realtor (in the U.S.) gets 1.5% of the purchase price. From a 6% commission, it is split 50/50 with buyer's realtor, and then 50/50 again with the realtor's employing realty firm.

So to go from $140,000 to $145,000 only puts about $750 in the realtor's pocket vs. nothing if no sale. In other words, the realtor is motivated to get any deal done vs. the best deal for you. Only use the realtor to show the house, do the paperwork, and run interference. Unless a relative or close personal friend, do not trust him/her any further.

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Slightlyoutofit
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PostPosted: Wed Aug 26, 2009 9:05 pm Reply with quoteBack to top

^^ Which is why I specifically put the word "consider" in itallics.

The OP can then bargain between the valuer's price and the lowest that he is willing accept. Putting down the mimimum as a starting point but not the final selling price cuts out all the timewasters and bullshitters and shows any prospective party that the vendor is not going to be easy to screw with.

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PostPosted: Thu Aug 27, 2009 1:09 am Reply with quoteBack to top

I wouldn't quibble back the $1k less counter offer. If they are "low ballers" they will just send back an offer that comes up $1k or so. Then if you do accept an offer from them, they will find all kinds of things wrong with the house (including the cats) and want you to fix them AFTER you have accepted their low ball price.

In the mean time, you will have missed a REAL offer because you are focused on the chisler.

Listen to your guy (heart) and your friends here at Eater and walk away from this "offer" (unless you are desperate or need to short sell...).

In many states the realtor has to bring you any offer they receive. Low ball or not.

I agree, don't tell your agent your lowest price you will accept. They (generally) don't care if YOU make anything on the transaction. If their BMW payment is due they will talk you into the quickest sale that works for them.

I don't believe there is any "law" about bringing "pre-qualified" buyers. Many realtors are making that stipulations so that they aren't "wasting" their time by showing property to "lookie loos" who are just voyeurs. IMO, the prequalification requirement is a form of discrimination...





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N N N
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PostPosted: Thu Aug 27, 2009 7:06 am Reply with quoteBack to top

I think a lot of Brits are sitting here thinking ... "damn that's cheap!"

Stick to your asking price, tell them "NO!"
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Doodle Bug
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PostPosted: Thu Aug 27, 2009 7:18 am Reply with quoteBack to top

Quote:
I think a lot of Brits are sitting here thinking ... "damn that's cheap!" I


Not if it is made from wood Wink

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PostPosted: Thu Aug 27, 2009 11:31 am Reply with quoteBack to top

A lot of Americans are also thinking that's a great price - where I am a house with those features would be well over $300 K. Mind you, a couple of years ago that number would have been well over $500K.

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PostPosted: Thu Aug 27, 2009 2:04 pm Reply with quoteBack to top

I agree Titania! It does sound nice for the price v. features aspect.

What is the square footage, if I may be so bold? How about the lot size. There are a lot of factors we are not taking into consideration. How is the roof? I know I would take at least 4-5 K off if I was buying a house that needed a new roof. I don't think we are in position to really tell the OP how to bargain with the buyer if we don't know what the specifics are. We have some homes on the water that are nothing more than fishing shacks that are selling at upwards of around $300K with none of the features the OP listed, other than a view of the water.

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I have arrived in Moscow. Has gone to bank and to me have told that there is no such transfer for me!!!!
What does it mean? You played with me? If it so that you very much the cruel man and I am assured of that that the god will see your cruelty.
Explain to me!!!!!!!!!!!!!!!! - Alena Byk0va
-----------
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We are Karma's soldiers.
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I must be cruel, only to be kind:
Thus bad begins and worse remains behind.
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riskyfreedeal
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PostPosted: Fri Aug 28, 2009 1:11 pm Reply with quoteBack to top

Well, another offer came in at 140,500 and we decided to take it (another person, obviously). We are happy with the price. Of course, it is lowered by the current market, but everyone's sort of taking a bath right now. Thanks for all the advice.

_________________
"SEND TO THIS BANK FOR THE TRANSFER PROCESS SINCE YOU KNOW HO MUCH THAT IS INVOLVED IT IS NOT PEENUT"

"It will be administered in acordance with strict rules and regulations known as "Rules of Incestacy." - Ian R33d

"LOOK MR MAN, WE DON'T HAVE ANY BUSINESS TO DO WITH MR. G0MER WHAT KIND OF HUMANBEN ARE YOU THAT WILL BE SO KEALESS AS YOU ARE."

"FOR CHRIST SAKE WE NEVER ASK YOU TO MAKE ANY TRANSACTION VIA WESTERN UNION S3CURE SH1ELD!"

"You are making the whole thing hard for your self"

"You call me for any other moral Discusion"

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Connie L. Gus
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PostPosted: Fri Aug 28, 2009 2:15 pm Reply with quoteBack to top

There you go. Congrats on not wasting your time with a schemer. I hope the low baller learned a lesson on good faith negotiations.

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Tastysnack
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PostPosted: Fri Aug 28, 2009 2:24 pm Reply with quoteBack to top

^^^^^Not at all. They just learned that the OP wasn't a 'distressed' seller. They are not in it for anything other than a lowball offer to see who bites.

_________________
"I DO NOT THINK WE CAN DO THIS TOGETHER. YOU HAVE BROUGHT MORE PAINS TO ME THAN GOOD." Mr. Wang Yan- After I attempted to rebait with same name as last time. 2-4-09

"you are the must fool i have ever seen fuck you like the 12.5 million idoit dont write me again" Radebe Gumede 7-16-09 after his bank transfer failed.


"Sorry we do not know Mr. Gomer. Send that email fromthe so called gomer to us for scrutiny."- Devati Mooleedhar

SON OF A DOG GO EAT SHIT AND DRINK WATER!!!!!!!!!!!!!!!!!!!!!!!!!!!!! LOSERRRRRRRRR.GET A LIFE--Bakar Saud (After Mr. Gomer chopped his dolla')

YOU ATE OUR MONEY AND YOU START MOCKING US--Bishop Anthony

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PostPosted: Fri Aug 28, 2009 2:39 pm Reply with quoteBack to top

Any sale for what is close to what you want/need. Is a good sale. 'Specially if you are sitting on a house after relocating! Been there, helped out with that! Way to go ont the sale. Make sure they sign quickly, seen too many buyer's try to change their minds after the offer is accepted lately. Get that binding contract!

_________________
I have arrived in Moscow. Has gone to bank and to me have told that there is no such transfer for me!!!!
What does it mean? You played with me? If it so that you very much the cruel man and I am assured of that that the god will see your cruelty.
Explain to me!!!!!!!!!!!!!!!! - Alena Byk0va
-----------
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We are Karma's soldiers.
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I must be cruel, only to be kind:
Thus bad begins and worse remains behind.
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riskyfreedeal
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PostPosted: Fri Aug 28, 2009 4:19 pm Reply with quoteBack to top

Offers are already signed...my agent brought them over at 11:00 PM last night Very Happy

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"SEND TO THIS BANK FOR THE TRANSFER PROCESS SINCE YOU KNOW HO MUCH THAT IS INVOLVED IT IS NOT PEENUT"

"It will be administered in acordance with strict rules and regulations known as "Rules of Incestacy." - Ian R33d

"LOOK MR MAN, WE DON'T HAVE ANY BUSINESS TO DO WITH MR. G0MER WHAT KIND OF HUMANBEN ARE YOU THAT WILL BE SO KEALESS AS YOU ARE."

"FOR CHRIST SAKE WE NEVER ASK YOU TO MAKE ANY TRANSACTION VIA WESTERN UNION S3CURE SH1ELD!"

"You are making the whole thing hard for your self"

"You call me for any other moral Discusion"

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Connie L. Gus
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PostPosted: Fri Aug 28, 2009 4:28 pm Reply with quoteBack to top

Good luck in escrow! You are right Tastysnack. Considering how low the offer was, they were not serious. I figured that eventually they would come around, but people like this never do. Sucks to be their agent.

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LISTEN TO ME WHAT DO YOU TAKE ME FOR ONE OF THOSE CHEAP CROOK OR WHAT -tobi donito
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LISTEN I CAN NOT TAKE YOUR SHIT ANY LONGER WE HAVE WHROTE A PETITION AGAINST YOU TO THE FBI WITH ALL OUR EVIDENCE YOU ARE INTO PROSTITUTION,DRUG DEALING, FORGERY, CREDIT CARDS FORGRY WESTEN UNION FALSIFICATION,DRUGING MEN,COMMETING MURDER, STEALING, DRUNCARD, ALL THIS WE HAVE THE EVIDENCE TO PROOF OUR CASE AGAINST YOU.-Johnson Hill
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riskyfreedeal
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PostPosted: Fri Aug 28, 2009 5:45 pm Reply with quoteBack to top

Connie L. Gus wrote:
Sucks to be their agent.


Her agent basically said as much. Said her original pre-approval expired and she had to re-do the process because she's just running around lowballing people. Seemed sort of frustrated.

_________________
"SEND TO THIS BANK FOR THE TRANSFER PROCESS SINCE YOU KNOW HO MUCH THAT IS INVOLVED IT IS NOT PEENUT"

"It will be administered in acordance with strict rules and regulations known as "Rules of Incestacy." - Ian R33d

"LOOK MR MAN, WE DON'T HAVE ANY BUSINESS TO DO WITH MR. G0MER WHAT KIND OF HUMANBEN ARE YOU THAT WILL BE SO KEALESS AS YOU ARE."

"FOR CHRIST SAKE WE NEVER ASK YOU TO MAKE ANY TRANSACTION VIA WESTERN UNION S3CURE SH1ELD!"

"You are making the whole thing hard for your self"

"You call me for any other moral Discusion"

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