Real Estate Agent · Prescott, AZ · Member since 2019 · 31 posts · 13 votes
If a property has been on the market for a while (over 100 days) is it OK to "low ball them?
Example. There is a duplex that has been on the market for 111 days listed at $244,900 in Prescott , AZ (about what they're going for). If I run the rental property calculator and my "home run" price is $185,000, is that too low of a price to offer? Will I gain a reputation as a lowballer? Or is it better to just offer and have them say "no?"
If you're going to come in low, you better have a good explanation as to why the seller should consider your offer. If you have facts/comps that back up your price, or if the property is in a state of disrepair, then mention it. Just simply offering 60k below market because of a high DOM isn't going to cut it. I've seen offers on stale listings rejected for a lot less than 60k under asking, and that's with some justification.
You may want to call the listing agent and try to get some more information about the property or owner to see if they'd be willing to negotiate a lower price.
If you're going to come in low, you better have a good explanation as to why the seller should consider your offer. If you have facts/comps that back up your price, or if the property is in a state of disrepair, then mention it. Just simply offering 60k below market because of a high DOM isn't going to cut it. I've seen offers on stale listings rejected for a lot less than 60k under asking, and that's with some justification.
You may want to call the listing agent and try to get some more information about the property or owner to see if they'd be willing to negotiate a lower price.
Real Estate Agent · Prescott, AZ · Member since 2019 · 31 posts · 13 votes
7y
@Bob Okenwa That is great advice. And the same advice that another agent gave me who is up here. I will look further into the property and see if there is room for negotiation. Thank you.
Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
7y
Are they for you or a client?
Either way, I wouldn't worry about getting a reputation as a "low-baller." The reputation you do want is that of a closer, though. I wouldn't make too many offers and then walk away after they get accepted. The small community of commercial agents will let that influence their presentations at some point.
You have to make the offer that makes sense to you, whether or not that price makes sense to the seller. And I've heard enough times that I repeat it: "If you're not embarrassed by your offer, you're going in too high."
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
7y
To add on to what @Dan Maciejewski said, I agree it is in your best interest to make offers that work for you and not the seller, even if it's low. It just helps if there's a reason why and not just some random number that's 60k under asking.
Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
7y
Make the offer. All they can do is say no or counter back. Let them know why you are making the lower offer because they might just agree with you and take it. I recently bought a 100 year old house that needed some work. They were asking $69,900 and I offered $45,000. It needed a new furnace, central air installed, and the rest of the electrical updated. The hardwood floors were covered with carpet and I couldn't even see them. The hubby had been remodeling it 10 years ago and then passed away, so there were open walls and half completed projects. They weren't going to find anyone who wasn't handy to buy it. We settled at $53,500. Now I'm fixing it up like new with about $25,000 and going to list it for about $125,000. I wouldn't care if someone called me a lowballer. When my remodeled houses are listed, they SEE what I put into them. Good luck!