Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
9y
Low ball or not why put in a stupid offer. Put in smart offers.
if you want to put in low ball offers, don't spam them out. Put in low offers where there is some indication they may have a reason to accept. Long days on market for example
I think too many people get butt hurt these days. If you want to lose money, sure, submit your "best offer" and over pay. There are so many deals to be had on the market, why would you EVER worry what somebody is going to think about you if you make a lower offer. Get over yourself.
House was listed for $65k, we offered $25 and signed the purchase agreement within 24 hours of our original offer at $40. But go ahead and submit your "best offer" then try and negotiate down from there, ha.
Well said...
As someone who has worked in the car business for the last 17 years I have to agree( to a point )
Chandler, AZ · Member since 2014 · 33 posts · 5 votes
9y
@ Mike Cumbie.
You are right in the example that you provided. If I was a Realtor I would be hesitant to submit offers 25 cents on the dollar on someones behalf, but since I am also an investor I would not be hesitant to submit an offer close to 25 cents on the dollar and see where the chips fall.
Now, the Realtor that I mentioned earlier was not even listening to the buyer (or did not even care) of what the buyer wanted to do.
My understanding of what the responsibilities of a Realtor is to guide and protect the buyer and work in his favor in order to accomplish the ultimate goal of getting the home for the buyer to the point where the buyer feels comfortable with the whole transaction. The job of the Realtor is to assist the buyer and educate the buyer so that he (Realtor) is not running all over town showing different homes and wasting everyone's time.
Full asking price with all closing costs = Seller's wet dream
$96K on a $120K house = Retail offer requesting negotiation of selling price and cost splits
$32K to $80K on a "$120K" house = an investor offer based on the property's condition. If such an offer does not include justifications, while you are legally obligated to present it, expect the seller to reject it. If justifications are included, now the seller has something to verify.
Just the way I would view if I were a licensed agent/broker. Your mileage may vary.
How do you guys feel about stupid low ball offers?
Is it something you do every single time, if so, Do you find it works or is it a waste of time? if it does work what is your strategy with it?
If you're working in a slow non-competitive market then putting in low ball offers may be ok, but if it's hot competitive market where more than likely there are multiple offers I recommend you figure out what you're best offer & submit it.