In a 1 square mile area of a region I am looking at investing in there are 5 houses listed between $100k and 130k. In the past 6 months there haven't been any homes sold in the area for much more than $85k. One such home has been on the market for 80 days and had the price dropped twice to $109k. I'm considering making a low ball offer. The owner appears to have purchased it wholesale in march and put a lot of work into it. I believe the home has a market value of around $100k. I'm considering offering $75k or 80K. I know that I shouldn't fear making too low an offer and getting turned down I'm just not sure its a good way to start a relationship with my realtor. I've already got one lined up and looking for the kind of deal I'm looking for. What are your thoughts?
Your Realtor is there to help you. We don't make the choices, nor should we judge our clients for doing what you feel you want/need in a transaction. Our only obligation is to help you purchase/sell a home with your best interest (and the law) in mind. If a realty agent has a problem submitting a low offer, he/she is worrying too much about the other party who are consenting adults under the law and can make their own decisions and research to decline, accept, or counter the offer.
If a home is sitting on the market for more than a month or so, go ahead and offer lower. Why not? The worst thing is that they decline it. Maybe they'll shoot back a counter for lower than their asking, or maybe they'll even accept.
You don't know everyone's situation. Maybe the seller is in deep with too many bills and has to sell quick and will take anything that is offered but doesn't want to offer it low in case someone is willing to pay more.
Real estate is a numbers game. Keep playing - you'll win at some point.
I like properties that have been sitting on the MLS for a longer period of time. IMO it's usually because the price is to high among other reasons, so I would definitely low ball.
What are you worried about, hurting someone's feelings? If that is the case, then hustling for business is not your game. This is a business, it is not personal. Somebody should include that in every real estate agent training course as so many have spread this silly thought process to buyers. Offer what you think it should is worth, the ask price has nothing to do with those things.
This feeling is normal when you first start investing and purchasing property. This will pass over time. Investing is a numbers game, and you need to choose the numbers that will work for you. This isn't about feelings. If your realtor chooses not to continue with you afterwards, they probably weren't the realtor for you. I would be upfront with what your planning to do with your realtor. They should help and guide you through the process. If they don't, then it may be time to confided a new realtor.
Offer on it! Get it done and play hard ball. I got an offer accepted on a 4 plex that was listed at $220k for $96k. Low ball is fine if it's been sitting on the market