Etiquette on Offers on Overpriced Fixers

Member since 2025 · 18 posts · 8 votes

I see nothing wrong with using a buy & hold strategy. But I keep coming across fixers where the seller purchased it recently (within last 6 months), did no improvements at all, and is trying to sell it for significantly more. The market values are still closer to what the seller paid for it.

I submit an offer that is more in line with other fixers in the area, is it OK to present the prior sale of the same property as a comp? Or would that come across as hostile toward the seller? Am I justified in making a lower than normal offer?

If the seller had purchased at a lower price in 2017, I wouldn't think much about it, but some of them were 3-4 months ago. One of them paid $59k in July and listed it in October for $129k and just reduced to $109k. The pictures in both listings show the same work needed.

I see this happening more frequently than I would have expected

Thanks so much in advance!

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

9mo

Quote from @Andrea Hernandez:

I see this happening more frequently than I would have expected

Thanks so much in advance!

Just offer what you think you can live with .. do not take sellers feelings into the equation .. especially if they are wholesaler flippers they wont care .. they have a number you have a number

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9mo
Quote from @Andrea Hernandez:

I see nothing wrong with using a buy & hold strategy. But I keep coming across fixers where the seller purchased it recently (within last 6 months), did no improvements at all, and is trying to sell it for significantly more. The market values are still closer to what the seller paid for it.
I submit an offer that is more in line with other fixers in the area, is it OK to present the prior sale of the same property as a comp? Or would that come across as hostile toward the seller? Am I justified in making a lower than normal offer?
If the seller had purchased at a lower price in 2017, I wouldn't think much about it, but some of them were 3-4 months ago. One of them paid $59k in July and listed it in October for $129k and just reduced to $109k. The pictures in both listings show the same work needed.
I see this happening more frequently than I would have expected
Thanks so much in advance!

Just offer what you think you can live with .. do not take sellers feelings into the equation .. especially if they are wholesaler flippers they wont care .. they have a number you have a number
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
5 Reply
- Andrea Hernandez
  OP
  Member since 2025 · 18 posts · 8 votes
  9mo
  Quote from @Jay Hinrichs:
  
  Quote from @Andrea Hernandez:
  
  I see nothing wrong with using a buy & hold strategy. But I keep coming across fixers where the seller purchased it recently (within last 6 months), did no improvements at all, and is trying to sell it for significantly more. The market values are still closer to what the seller paid for it.
  I submit an offer that is more in line with other fixers in the area, is it OK to present the prior sale of the same property as a comp? Or would that come across as hostile toward the seller? Am I justified in making a lower than normal offer?
  If the seller had purchased at a lower price in 2017, I wouldn't think much about it, but some of them were 3-4 months ago. One of them paid $59k in July and listed it in October for $129k and just reduced to $109k. The pictures in both listings show the same work needed.
  I see this happening more frequently than I would have expected
  Thanks so much in advance!
  
  Just offer what you think you can live with .. do not take sellers feelings into the equation .. especially if they are wholesaler flippers they wont care .. they have a number you have a number
  
  Thank you! I'm not really worried about the seller's feelings, it's more that I don't want to waste my time, my agent's time, my contractor's time, the listing agent, the lender, etc only to have my offer end up in the garbage because its viewed as a cowbell.
  But I'm sure the seller is an investor or wholesaler based on the work needed, so I'm sure they're well aware that it's way overpriced.
  0 Reply
- Andrea Hernandez
  OP
  Member since 2025 · 18 posts · 8 votes
  9mo
  Quote from @Andrea Hernandez:
  
  Quote from @Jay Hinrichs:
  
  Quote from @Andrea Hernandez:
  
  I see nothing wrong with using a buy & hold strategy. But I keep coming across fixers where the seller purchased it recently (within last 6 months), did no improvements at all, and is trying to sell it for significantly more. The market values are still closer to what the seller paid for it.
  I submit an offer that is more in line with other fixers in the area, is it OK to present the prior sale of the same property as a comp? Or would that come across as hostile toward the seller? Am I justified in making a lower than normal offer?
  If the seller had purchased at a lower price in 2017, I wouldn't think much about it, but some of them were 3-4 months ago. One of them paid $59k in July and listed it in October for $129k and just reduced to $109k. The pictures in both listings show the same work needed.
  I see this happening more frequently than I would have expected
  Thanks so much in advance!
  
  Just offer what you think you can live with .. do not take sellers feelings into the equation .. especially if they are wholesaler flippers they wont care .. they have a number you have a number
  
  Thank you! I'm not really worried about the seller's feelings, it's more that I don't want to waste my time, my agent's time, my contractor's time, the listing agent, the lender, etc only to have my offer end up in the garbage because its viewed as a cowbell.
  But I'm sure the seller is an investor or wholesaler based on the work needed, so I'm sure they're well aware that it's way overpriced.
  
  Lowball, not cowbell lol
  0 Reply
Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
9mo
@Andrea Hernandez, when you justify your offer you are trying to support your position with information and context the seller and seller's agent may not be aware of or in touch with? Do you think the seller and their agent are unaware of what the seller paid just a few months prior?!? Of course not.
If its worth what you are offering you will WIN because nobody will pay more! Or do you believe with enough time on the market that someone WILL pay more?
If you think your offer is good, make it, BUT ALSO follow up and make the offer again and again or at least follow up with the agent to let them know that you are still interested at that price. Their plan apparently is NOT to improve the property, so they are selling and if yours is the best offer they will likely eventually have to take it.
1 Reply
- Andrea Hernandez
  OP
  Member since 2025 · 18 posts · 8 votes
  9mo
  Quote from @Kevin Sobilo:
  
  @Andrea Hernandez, when you justify your offer you are trying to support your position with information and context the seller and seller's agent may not be aware of or in touch with? Do you think the seller and their agent are unaware of what the seller paid just a few months prior?!? Of course not.
  If its worth what you are offering you will WIN because nobody will pay more! Or do you believe with enough time on the market that someone WILL pay more?
  If you think your offer is good, make it, BUT ALSO follow up and make the offer again and again or at least follow up with the agent to let them know that you are still interested at that price. Their plan apparently is NOT to improve the property, so they are selling and if yours is the best offer they will likely eventually have to take it.
  
  Thank you so much for the response! Yes, I do think eventually someone might pay more if they intend to fix and occupy and really love the house. It's beautiful on the outside but needs quite a bit of work inside.
  With that said, I was considering it to flip but I'm not set on any specific property and can't see myself making repeat offers, when I could be using those resources for something else. That's why I was kind of wondering if it's even worth making an offer at all. I keep reading this "rule" that you're not supposed to offer less than 80% of list, but i assume that is for properties that are priced reasonably.
  1 Reply
- Kevin Sobilo
  Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
  9mo
  Quote from @Andrea Hernandez:
  
  Quote from @Kevin Sobilo:
  
  @Andrea Hernandez, when you justify your offer you are trying to support your position with information and context the seller and seller's agent may not be aware of or in touch with? Do you think the seller and their agent are unaware of what the seller paid just a few months prior?!? Of course not.
  If its worth what you are offering you will WIN because nobody will pay more! Or do you believe with enough time on the market that someone WILL pay more?
  If you think your offer is good, make it, BUT ALSO follow up and make the offer again and again or at least follow up with the agent to let them know that you are still interested at that price. Their plan apparently is NOT to improve the property, so they are selling and if yours is the best offer they will likely eventually have to take it.
  
  Thank you so much for the response! Yes, I do think eventually someone might pay more if they intend to fix and occupy and really love the house. It's beautiful on the outside but needs quite a bit of work inside.
  With that said, I was considering it to flip but I'm not set on any specific property and can't see myself making repeat offers, when I could be using those resources for something else. That's why I was kind of wondering if it's even worth making an offer at all. I keep reading this "rule" that you're not supposed to offer less than 80% of list, but i assume that is for properties that are priced reasonably.
  
  I have no idea what you are talking about "use those resources for something else". I said even if you don't want to make repeated written offers just contact the agent and let them know you are still interested periodically. Do you think think a phone call a month is "work" that takes you away from being able to do productive things?!? It takes effort to get deals, even MORE effort if you ever try to bird dog your own off-market deals!
  If you are making offers on someone's HOME that they lived in and cared for then yes an offer less than 80% might be PERSONALLY offensive, but for properties that the seller has no emotional attachment to that really is NOT an issue. If you personally offend someone about their HOME, they may refuse to sell to you at any price out of spite.
  I have bought a few properties off the MLS for 50-75% of listed price. Sometimes you need to find not only a distressed property but a distressed seller as well.
  I have also lost out on deals where I made offers early on that were turned down but didn't follow up with the agent only to later see the property sell for the same or LESS than I had offered a few months prior.
  0 Reply
- Andrea Hernandez
  OP
  Member since 2025 · 18 posts · 8 votes
  9mo
  Quote from @Kevin Sobilo:
  
  Quote from @Andrea Hernandez:
  
  Quote from @Kevin Sobilo:
  
  @Andrea Hernandez, when you justify your offer you are trying to support your position with information and context the seller and seller's agent may not be aware of or in touch with? Do you think the seller and their agent are unaware of what the seller paid just a few months prior?!? Of course not.
  If its worth what you are offering you will WIN because nobody will pay more! Or do you believe with enough time on the market that someone WILL pay more?
  If you think your offer is good, make it, BUT ALSO follow up and make the offer again and again or at least follow up with the agent to let them know that you are still interested at that price. Their plan apparently is NOT to improve the property, so they are selling and if yours is the best offer they will likely eventually have to take it.
  
  Thank you so much for the response! Yes, I do think eventually someone might pay more if they intend to fix and occupy and really love the house. It's beautiful on the outside but needs quite a bit of work inside.
  With that said, I was considering it to flip but I'm not set on any specific property and can't see myself making repeat offers, when I could be using those resources for something else. That's why I was kind of wondering if it's even worth making an offer at all. I keep reading this "rule" that you're not supposed to offer less than 80% of list, but i assume that is for properties that are priced reasonably.
  
  I have no idea what you are talking about "use those resources for something else". I said even if you don't want to make repeated written offers just contact the agent and let them know you are still interested periodically. Do you think think a phone call a month is "work" that takes you away from being able to do productive things?!? It takes effort to get deals, even MORE effort if you ever try to bird dog your own off-market deals!
  If you are making offers on someone's HOME that they lived in and cared for then yes an offer less than 80% might be PERSONALLY offensive, but for properties that the seller has no emotional attachment to that really is NOT an issue. If you personally offend someone about their HOME, they may refuse to sell to you at any price out of spite.
  I have bought a few properties off the MLS for 50-75% of listed price. Sometimes you need to find not only a distressed property but a distressed seller as well.
  I have also lost out on deals where I made offers early on that were turned down but didn't follow up with the agent only to later see the property sell for the same or LESS than I had offered a few months prior.
  No, what I meant by "use those resources for something else" is that if I can afford to purchase 1 or 2 properties within a certain price range, I'm not going to wait around for a certain one to maybe eventually accept my offer, I'm going to move on to something else and then wouldn't be able buy that first one unless it's still available after I sell the ones I did end up buying
  
  I'm not completely green, but I wouldn't call myself seasoned either. I only do 1-2 projects at a time and they're in areas with lower price points whrre I could still pay off my loans if I can't get the properties sold for some reason. I don't want to get in over my head.
  
  I think it's great advice that you gave for someone who is a bigger investor, but I'm still small and playing the penny slots, so to speak.
  
  0 Reply
- Kevin Sobilo
  Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
  9mo
  Quote from @Andrea Hernandez:
  
  Quote from @Kevin Sobilo:
  
  Quote from @Andrea Hernandez:
  
  Quote from @Kevin Sobilo:
  
  @Andrea Hernandez, when you justify your offer you are trying to support your position with information and context the seller and seller's agent may not be aware of or in touch with? Do you think the seller and their agent are unaware of what the seller paid just a few months prior?!? Of course not.
  If its worth what you are offering you will WIN because nobody will pay more! Or do you believe with enough time on the market that someone WILL pay more?
  If you think your offer is good, make it, BUT ALSO follow up and make the offer again and again or at least follow up with the agent to let them know that you are still interested at that price. Their plan apparently is NOT to improve the property, so they are selling and if yours is the best offer they will likely eventually have to take it.
  
  Thank you so much for the response! Yes, I do think eventually someone might pay more if they intend to fix and occupy and really love the house. It's beautiful on the outside but needs quite a bit of work inside.
  With that said, I was considering it to flip but I'm not set on any specific property and can't see myself making repeat offers, when I could be using those resources for something else. That's why I was kind of wondering if it's even worth making an offer at all. I keep reading this "rule" that you're not supposed to offer less than 80% of list, but i assume that is for properties that are priced reasonably.
  
  I have no idea what you are talking about "use those resources for something else". I said even if you don't want to make repeated written offers just contact the agent and let them know you are still interested periodically. Do you think think a phone call a month is "work" that takes you away from being able to do productive things?!? It takes effort to get deals, even MORE effort if you ever try to bird dog your own off-market deals!
  If you are making offers on someone's HOME that they lived in and cared for then yes an offer less than 80% might be PERSONALLY offensive, but for properties that the seller has no emotional attachment to that really is NOT an issue. If you personally offend someone about their HOME, they may refuse to sell to you at any price out of spite.
  I have bought a few properties off the MLS for 50-75% of listed price. Sometimes you need to find not only a distressed property but a distressed seller as well.
  I have also lost out on deals where I made offers early on that were turned down but didn't follow up with the agent only to later see the property sell for the same or LESS than I had offered a few months prior.
  No, what I meant by "use those resources for something else" is that if I can afford to purchase 1 or 2 properties within a certain price range, I'm not going to wait around for a certain one to maybe eventually accept my offer, I'm going to move on to something else and then wouldn't be able buy that first one unless it's still available after I sell the ones I did end up buying
  
  I'm not completely green, but I wouldn't call myself seasoned either. I only do 1-2 projects at a time and they're in areas with lower price points whrre I could still pay off my loans if I can't get the properties sold for some reason. I don't want to get in over my head.
  
  I think it's great advice that you gave for someone who is a bigger investor, but I'm still small and playing the penny slots, so to speak.
  
  I also, do 1-2 projects at a time and I absolutely would do as I said.
  I have had deals where I bird dogged them for a year before buying them! The one I'm thinking of was off-market but it was an excellent deal. Bought a side by side duplex for about $38k, invested about $55k in the rehab. So, all-in at about $93k. The ARV is about $250k and the rents are about $2400/month. It can be well worth the effort to be patient and work for better deals.
  If you have the ability to buy a property while still working on a project then you have ALL THE TIME IN THE WORLD in essence since you have productive work to do on the existing property and can be patient and hunt down the best deal for the next one.
  1 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
9mo
That's weird that you're coming across a lot of these. I don't see it that often in my market, there is almost always some value add completed, usually kitchen and bath updates/ curb appeal or lipstick upgrades at a minimum. I would assume there has to have been some sort of problem that was solved to justify the price increase. Perhaps there was a big lien on it that was paid off, probate situation that got cleared up, non-paying tenant was evicted, bad sewer line replaced or other major material issue handled, etc. Call the listing agent and get the scoop, then ask if they have any other offers and if not see if they will entertain your offer. Just be ready to justify it with comps. No hard feelings necessary, it's just business. I like to be super polite even when making blood-sucking offers. If they don't have any offers, even your lowball will be their best offer. At least it opens the conversation.
2 Reply
- Andrea Hernandez
  OP
  Member since 2025 · 18 posts · 8 votes
  9mo
  Quote from @Steve K.:
  
  That's weird that you're coming across a lot of these. I don't see it that often in my market, there is almost always some value add completed, usually kitchen and bath updates/ curb appeal or lipstick upgrades at a minimum. I would assume there has to have been some sort of problem that was solved to justify the price increase. Perhaps there was a big lien on it that was paid off, probate situation that got cleared up, non-paying tenant was evicted, bad sewer line replaced or other major material issue handled, etc. Call the listing agent and get the scoop, then ask if they have any other offers and if not see if they will entertain your offer. Just be ready to justify it with comps. No hard feelings necessary, it's just business. I like to be super polite even when making blood-sucking offers. If they don't have any offers, even your lowball will be their best offer. At least it opens the conversation.
  Thank you! Yes, it could very well be that the seller did things behind the scenes that aren't evident in the listing. My initial thought was that the seller was hoping to get lucky and reel in an owner-occupant. Although the price is pretty high for a fixer, it might not be so bad of a deal if I just wanted to renovate & live there and didn't need to leave room for profit. But yeah, I'm seeing this pretty often when looking for comps.
  0 Reply
Adam MaddoxBusiness Member
Chino Hills, CA · Member since 2020 · 7 posts · 1 vote
9mo
The name of the game is make the offer that makes sense for you! Do not let someone else's expenses become yours.
[email protected]909-377-0770
Lion's Den Real Estate56 Reviews
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1 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9mo
The only offer that matters is what you are willing to pay for a property. The list price is irrelevant. When I look at property I look at what it could be not what it is today. If there is upside by BRRRR'g or flipping it then it will have potential.
Once you know your area well. It only takes a minute or two to know whether something is worth spending more time analyzing or not.
I do understand that prices are still inflated. Even the rough ones. As the market keeps increasing in volume of properties for sale it will force properties to lower prices and will open doors for reasonable offers. Time will tell, but the market or at least my market is still over inflated, but there are still possible deals out there. What drives deals is time on the market and no offers. Timing is everything.
0 Reply
- Andrea Hernandez
  OP
  Member since 2025 · 18 posts · 8 votes
  9mo
  Quote from @Kenneth Garrett:
  
  Once you know your area well. It only takes a minute or two to know whether something is worth spending more time analyzing or not.
  
  Thanks so much for responding! I am really looking forward to reaching a point where I can eyeball them and know For me, it's not about not knowing the market, but not knowing renovation costs by eyeballing it. I'm getting better with the frequent stuff like flooring, but it seems that every project I'm seriously considering has some aspect I know nothing about, like suspended ceilings. Easy enough to replace the panels, but i wasn't sure if they came standard or had to be custom made. I spend way too much time on these things, But I learn each time!
  
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