High-ball Offer? - Posted by Rich


#1

Posted by Rich on February 24, 1999 at 18:39:52:

Read my 2nd post near the top…blown out of the water. - Rich


#2

High-ball Offer? - Posted by Rich

Posted by Rich on February 22, 1999 at 17:49:39:

Has anyone ever submitted a contract for the asking price on property and been called back by the listing agent to see if that’s the best you can do?


#3

Re: High-ball Offer? - Posted by Rich

Posted by Rich on February 23, 1999 at 18:50:47:

Just to let you all know that I made my best offer…and it just wasn’t good enough. I offered $130k, and the realtor said they presented the two offers, and the other was all cash and substantially higher. They’re asking $119k, I offer $130k, and I’m substantially lower. Go figure. So it’s a sad day in Mudville. . . mighty Casey has struck out.


#4

A word of caution… - Posted by ScottE

Posted by ScottE on February 23, 1999 at 08:15:18:

Rich,
Be careful you aren’t falling for the age-old concept of BLUFFING. It is not only the listing agent’s job to sell the property at the highest possible price, but also an advantage to their pocketbook.
Some things to consider:
1)Why did the listing agent list it at such a remarkably low price in the first place?
2)Is there any REAL evidence that other bidders are in the mix?
3)If there are other bidders, are they pre-APPROVED like you are?
4)Is the seller willing to risk a higher offer on another party that claims financing will be “no problem”, like we’ve all heard a thousand times before.

Try to sell them on your deal. This would be a great exercise in negotiation.

Good luck

Scott


#5

Re: High-ball Offer? - Posted by phil fernandez

Posted by phil fernandez on February 22, 1999 at 18:39:13:

Rich,

I have never had a realtor try to pull that one on me, but I’m sure it happens. What the realtor usually tells me is that there are ten other buyers very interested in the property so you better hurry and get your offer in.

My reply is, " If the ten other offers do not materialize, then give me a call." I refuse to negotiate with myself in the name of some phantom buyer.


#6

Re: High-ball Offer? - Posted by Sean

Posted by Sean on February 22, 1999 at 18:30:02:

It happens a lot where I am that properties get listed for example $200,000 and sell for like $205,000. Is it possible that both you and another person offered the full listing price? This can especially happen with houses that say they’re listed “for fast sale” which means they’re discounted from what they should get if they waited a full 90 days.


#7

Re: High-ball Offer? - Posted by ScottE

Posted by ScottE on February 24, 1999 at 22:44:31:

Rich,
Sorry to hear that your deal fell through, but I’ll bet a better one is right under your nose…

Scott


#8

Re: A word of caution… - Posted by Rich

Posted by Rich on February 23, 1999 at 08:47:38:

Scott,
I’m not the world’s best poker player, far from it. If they are bluffing, they’ve got me ready to raise the stakes. My wife’s in love with this beautiful house and large fenced in yard…perfect for our six dogs. And, I must say, it would be perfect for our needs. Its over 3800 sq. ft. with a huge master suite with adjoining smaller bedroom/nursery (my wife’s due in June), and large elegant rooms. It’s convenient to my wife’s workplace, and is the jewel among other nice homes. It looks like something out of Gone with the Wind, with 4 large pillars, and floor to ceiling palladian windows in the front. It’s quite a house. And the price is right . . . maybe. I need help in formulating my next offer. I feel like I may be getting squeezed, but my agent says that the listing broker is an honorable fellow, and wouldn’t try to put the squeeze on me. We’ll see. Thanks for the advice. - Rich


#9

Re: High-ball Offer? - Posted by Rich

Posted by Rich on February 23, 1999 at 07:39:40:

I have spoken to a couple of other real estate people about the FMV of this property. The concensus is that the property was listed at about $50k under FMV - listed at $119k. One said it should be valued at over $200k, the other two were in at $189k, and $150k+. I have until noon today to give it my best shot. I was pre-approved for up to $130k by my bank. Should I offer the full $130k? What would the experts do?
Thanks - Rich


#10

Re: High-ball Offer? - Posted by Irwin

Posted by Irwin on February 23, 1999 at 05:18:34:

Phil:
It’s nice to have rules to live by, but what if the property is really listed way below fmv? Are you going to watch a $25k profit go away for want of some flexibility on the offer?


#11

Re: A word of caution… - Posted by ScottE

Posted by ScottE on February 23, 1999 at 08:59:49:

Rich,
I didn’t realize until I had already sent my post that your offer was on an owner-occupied deal. It sounds like a great house. Certainly it changes the complexion a bit and bumping up, cautiously, may be advantageous. Still, have your agent sell you guys on the listing agent(your pre-APRROVED status is a big one).
You really don’t need to be the best poker player to be a good negotiator. The key is finding out what the other guy really wants, and having just enough paranoia to keep yourself from getting jammed too hard.

Good luck!

Scott


#12

Re: High-ball Offer? - Posted by phil fernandez

Posted by phil fernandez on February 23, 1999 at 07:14:41:

Hi Irwin,

Of course not. Knowing my market if I saw a listing $25,000 below market I would have to make a higher offer to obtain the property, if there were other buyers out there.

I was assuming that the listing was listed at FMV like most of them are and the realtor wanted higher bids above FMV.


#13

Re: A word of caution… - Posted by Rich

Posted by Rich on February 23, 1999 at 09:14:08:

Scott,
The home is actually being sold due to the death of the previous owner. He outlived his children, and the grandson just wants to sell it. The owner was probably the wealthiest individual in this part of the state, and what’s left of the family is quite well-off (millions), so they really don’t need the money the sale of this house would allow. I did find out that the home was titled under their company name, so there’s probably a tax advantage to selling it below market.
I’m meeting with my agent to present our new offer (haven’t come up with one yet) at 11 a.m., 45 minutes from now. I’ll keep you posted. Thanks again. - Rich


#14

Re: High-ball Offer? - Posted by Irwin

Posted by Irwin on February 23, 1999 at 07:59:54:

Phil:
I kind of assumed that the list price was below fmv, and there were probably others who realized it, even though he called it a high-ball offer. Frankly, I can’t imagine offering fmv list price on anything, unless I’m going to live in it myself.


#15

Re: A word of caution… - Posted by Rich

Posted by Rich on February 23, 1999 at 10:45:34:

I’m baaack! And I made the offer…now we wait. It turns out that 2 others had offered the listing price, according to my agent. So we’ll see if we offered enough later on today. We’ll keep our fingers crossed.

  • Rich

#16

Re: High-ball Offer? - Posted by Rich

Posted by Rich on February 23, 1999 at 08:10:50:

Irwin,
Yes, we’re planning on moving in if we get it. My wife and I have always thought this home would be perfect for us. It is an older home 3800 sq. ft. on 1/2 acre, where most lots are 65 x 150. The back of the lot is adjacent to my wife’s workplace, so it’s convenient. What would you offer?


#17

Well…what happened??? (nt) - Posted by ScottE

Posted by ScottE on February 24, 1999 at 10:44:56:

nt


#18

Re: High-ball Offer? - Posted by Irwin

Posted by Irwin on February 23, 1999 at 17:23:09:

I don’t know. Am I buying it with your money or mine?