Posted by JohnBoy on June 07, 1999 at 24:33:30:
Hmmmmm???
Hey Bill,
Maybe Rodger is the realtor or the seller for this property?? LOL
Not A Motivated Seller, Just an Idiot… - Posted by RobertCA
Posted by RobertCA on June 02, 1999 at 14:31:21:
There is a lot of good info on this site on dealing with a motivated seller, but(!) what do you do when you find a brand new listing that is very underpriced???!!!
There’s a brand new listing for an SFR at $105K, worth $140K. Also the agent put it on the old MLS computer system, which almost nobody looks at.
Knowing they will soon figure out their mistake, should I
A. Immediately offer asking price with a 3 or 6 hour response time? Or would this tip them off that they had severely underpriced the house?
B. Immdiately offer them 3K above the asking price and give them 24 hours to respond. Or would also this tip them off that they had severely underpriced the house?
C. Be Mr. Ethical and call the agent and tell him that he screwed up and way underpriced the house.
D. Something else…
Thanks in advance for your response…
Make sure it is not the seller who is the idiot. - Posted by Andrew Smith (Phila)
Posted by Andrew Smith (Phila) on June 04, 1999 at 05:53:06:
Values can change dramatically within neighborhoods. I have purchased in areas where one side of the street will sell for more than the other side. Be sure of your value and make a slightly lower than full price offer. I am not a big fan of Ron LeGrand but I love one line he came up with - “You can’t steal in slow motion”. Hopefully you have already made your offer. Let us know how things turned out. By the way I just had this situation happen. The home was easily worth $85,000 in its present condition ($105,000 with just a little work - painting and carpeting). It was priced for $59,000. I was the first in the door and offered $53,000 which was accepted. I hope you have similar results.
Re: Not A Motivated Seller, Just an Idiot… - Posted by Roger
Posted by Roger on June 03, 1999 at 21:28:17:
Robert,
I was in the same situation. You should offer no less than $125 or the whole thing will be lost. With this market appreciation, you will more than make up for this. If you don’t, you’ll lose the deal.
Re: Not A Motivated Seller, Just an Idiot… - Posted by Laure
Posted by Laure on June 03, 1999 at 06:24:32:
I agree with posts… offer 5% under asking price. I would allow 24 hours for response, that’s just me. What they don’t know hurts them. What you don’t know hurts you. Cover your own butt.
Laure 
Re: Not A Motivated Seller, Just an Idiot… - Posted by V.P./Tx
Posted by V.P./Tx on June 02, 1999 at 16:43:02:
This may not apply in this case but what Joe Kaiser said about what the seller may know reminded me of a deal I looked at. Pretty decent neighborhood and houses
big trees and fairly quiet.
After checking into the situation it seems real estate
prices were somewhat lower here than a short ways down the road. The difference seemed to be because of the school district this area was in.
Re: Not A Motivated Seller, Just an Idiot… - Posted by don, sdca
Posted by don, sdca on June 02, 1999 at 15:07:53:
Robert,
Offer away! NOW! (Go and Get IT!!)
Make sure you are right about value and make a “clean” offer that the seller will accept quickly, by 9:00pm tonight??
Good luck and keep us informed
don, sdca
How could you possibly know that? - Posted by Joe Kaiser
Posted by Joe Kaiser on June 02, 1999 at 15:06:42:
Many times I’ve bought property and paid what turned out to be a premium because I thought I knew more than the seller.
I believed that:
“Rents are way too low” - they weren’t . . . nice units, but the neighborhood just wouldn’t support the rents I thought they should, or
“It’s way under priced” - it wasn’t . . . by the time I got done with the work that you couldn’t see from a drive by inspection, I was lucky to break even.
So, just because you think it’s low doesn’t mean it really is. With that said, however, sometimes you can find an MLS bargain and when that happens my agent and I prepare an offer that’s 5% under the asking price and he lets me know when it’s presented so I can be by the phone. If it isn’t accepted at my price, he calls me while the seller is still right there and gives me the number that “works.” It’s never more than the asking price if you’re the first one in the door, and I can “approve” it on the phone and the deal gets done. No deal destroying counter offers, just a signature . . . or not.
So . . . forget the “3 or 6 hour response time.” Get it signed on the spot or not. “B” doesn’t sound so hot either, because you’re probably right there, and “C” is entirely inappropriate. There is no ethical question here whatsoever.
Joe
VERY BAD Advice from “Roger” - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on June 06, 1999 at 12:07:36:
Robert,
Please don’t follow “Roger’s” advice. You should make your money on a deal GOING IN. Don’t expect real estate appreciation to bail you out of a bad purchase price. It’s ALWAYS better to walk away from a deal that costs too much going in than to hope that something beyond your control will bail you out.
The guy, or gal, posting this kind of nonsense has posted dubious advice under other threads as well using other names and bogus email addresses. The real investors on this site will ferret out this kind of misinformation and post reasonable responses AND real email addresses. For example, Joe Kaiser’s response is excellent.
Always remember, if someone you don’t know spews generalities about YOUR deal, you need to look for better advice. There is no way that “Roger” could possibly know that you should “offer no less than $125 or the whole thing will be lost.”
I hope this helps.
Bill K. (AZ)