I ticked off a seller with a low ball offer...

Buying & Selling Real Estate
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I ticked off a seller with a low ball offer...

Tiffany Hayden
Select a State · Member since 2011 · 18 posts · 0 votes

I am looking to purchase a house to live in. I found a house that I really like, but my realtor says they are asking too much. The house is listed at $128k. My realtor says that there haven't been any houses in that area that have sold for over $100k in the past year. This house is bigger than most in the neighborhood and has a very large lot. Most of the homes that have sold in the area have been short sales and foreclosures.

Anyway, we put in an offer for $95k and asked the seller to pay closing costs (I'm getting an fha loan and I'm allowed to request up to 6% in seller concessions). The sellers rejected the offer and aren't interested in countering.

I'm pretty sure they are ticked. Should I wait awhile before making another offer? Assuming the house actually appraises for enough, I am willing to pay up to their asking price, provided they pay for all of the closing costs.

Any thoughts?

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Mark Anderson
Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
15y

In this case, I wouldn't be concerned one bit that you may have ticked off the seller? First, you are just assuming you did. Second, if your numbers are right and the house really is overpriced, that is their problem. Don't make it your problem.

One key piece of info you left out of your post was how many days has the house been on the market. If it just hit the market, the seller probably thinks they can get what they are asking for. But if its been on the market for several months, sellers usually start to lower the asking price or will become more negotiable.

Yes, wait a while before making another offer.

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  • Mark Anderson
    Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
    15y

    In this case, I wouldn't be concerned one bit that you may have ticked off the seller? First, you are just assuming you did. Second, if your numbers are right and the house really is overpriced, that is their problem. Don't make it your problem.

    One key piece of info you left out of your post was how many days has the house been on the market. If it just hit the market, the seller probably thinks they can get what they are asking for. But if its been on the market for several months, sellers usually start to lower the asking price or will become more negotiable.

    Yes, wait a while before making another offer.

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  • Sharad M.Pro Member
    Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
    15y

    If this is a house that you plan to live in and you really like, I would just go back with highest and best offer. Make sure you include the contingency that the house appraises for at least the purchase price, because I have a feeling it is not going to appraise for what they are asking and then the seller might be willing to negotiate.

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  • Tiffany Hayden
    OP
    Select a State · Member since 2011 · 18 posts · 0 votes
    15y

    The house has been on the market for 28 days.

    I just did a search on realtor.com for houses recently sold in that area. I found 4 in that neighborhood that have sold for more than 125k since Dec 2010. I think my realtor was wrong.

    Should I still wait awhile before making another offer?

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  • Jackie Patterson
    Real Estate Investor · Kalamazoo, MI · Member since 2010 · 681 posts · 241 votes
    15y

    If you really want the house, I'd come back with your best offer. I doubt if you "ticked them off".......Sellers expect low offers. Even if you did insult them, they will be delighted with a higher offer that they might be able to accept.

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  • Account Closed
    Residential Real Estate Agent · Ocala, FL · Member since 2009 · 255 posts · 65 votes
    15y

    Why not just fire your realtor and submit a higher offer with someone else. Blame it on their silly advice.

    As for appraisal contingency, he doesn't need it really with it being a financed offer. Just makes sure to use the financing contingency and it covers all sorts of other stuff within.

    May want to check the clerk of the court to see what they owe, it might give you a better grasp on what is going on in their head.

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  • Mark Anderson
    Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
    15y

    Aaron makes a good point about trying to find out what the seller owes as this will have a big influence on how negotiable they are.

    If you found four homes that sold and the realtor found none, is it possible your search criteria were different? Did the realtor only look for homes within a .25 or .50 radius of the house while you searched the whole neighborhood? Are the four homes you found good comps, meaning square footage, beds, baths, parking, etc are all very similar?

    Like the others said, if this is the house you want, go back with another offer. I would make it a higher offer but not your highest and best. I would be willing to bet the seller will counter your higher offer. If that is your highest and best, you really don't have room to negotiate with them. Highest and best offers are usually reserved for multiple offer or competitive offer situations.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    Sometimes the seller has additional debt that is not recorded so what they owe is not the end all to be all.

    They could owe 50k and just because they have equity doesn't mean they will take a lower offer. 28 days is fairly new to the market in many sellers minds.

    The thought will be "we will wait and see what other offers come in".

    They will take the averages of those offers to see what kind of highest price they can realize.How clean the contract is and finance versus cash etc. and closing time lines make a difference.

    More motivation for a seller is are they facing foreclosure,job loss,illness,having a baby,elderly parent is moving in,job relocation,etc.,etc.

    Before offering again you need to nail down who's value is more accurate.You can come in higher and nail them down with the appraisal contingency and property inspection issues to get reductions.

    By then sellers are much more emotionally invested and will look at reductions to keep you from walking.Especially if you are a strong buyer who they think will be able to close.

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  • Tiffany Hayden
    OP
    Select a State · Member since 2011 · 18 posts · 0 votes
    15y

    Ok, my realtor called the listing agent and he said these people are stubborn, don't have to move, and recently turned down a $115k cash offer :(

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    They are non-motivated. They may WANT to sell but do not HAVE to sell.

    I would have never taken a listing from such a seller.

    Unless you have time to wait on their circumstances to change you need to look at other properties with more motivated sellers.

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  • Tiffany Hayden
    OP
    Select a State · Member since 2011 · 18 posts · 0 votes
    15y

    Thanks Joel. I am going to move on.

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