50% offer is too low?

[John Lee]

I'm look at a house that needed total rehab. Asking price $95k, ARV $120k, max arv $150k. The house is only on the market for a week, I want to come in with $45k offer, my realtor said it's too low and their realtor won't even present it. Can I ask my realtor to submit an offer anyway? And come back with 70% offer if they rejected it?

[Brandon Sturgill]

@John Lee There is a balance here...if your laws are anything like ours, the agent is required to present any "reasonable" offer...that's all subjective and arbitrary of course, as you've discovered. At our advise, our clients always seek an up-front discount...our market is very hot right now, so seeking more than 15% off list is a rarity...but some guys still like to seek 30% up front.

I would handle this in a "verbal offer" Your agent can call the sellers agent and explain the terms and rationale. The sellers agent should run this buy their clients...you get a read on things, but you don't waste time and resources by undergoing the formal offer process...