Thanks for the information because I am currently in this situation. We are submitting and offer for lower than they are requesting, but the home is over priced and needs to be repainted on the inside. What stands out to me is not walking away if they reject your offer. They counter offered us and I was about to just walk away, but we will tell them our offer is still on the table. Thanks again!!
Hi Ebony Simpson! Thank you for watching and for the update! Great to hear from you! Glad this video was able to help you. Did you catch the video I made from your suggestion about new home construction pros & cons? Just in case, here's the link: ua-cam.com/video/HNJ8raEee74/v-deo.html Thanks again for watching! Let us know how it works out for you. Enjoy a terrific day! Thanks, -Your Real Estate Geek, Andrew Finney
Congrats Ebony Simpson! YAY!!!!!!! Very excited for you. Please update us when you get the keys to your new place. Thanks, -Your Real Estate Geek, Andrew Finney www.andrewfinneyteam.com/
A friend is about to start shopping and I’ve been finding videos to send to her. You have solid advice! Here’s how I got my low cash offer accepted in LA: I found a house in an ideal location that had been on the market for over 200 days. That neighborhood was in a fantastic location, was in great condition, had curb appeal, but it was WAY overpriced. It was nearly double the cost of all neighboring homes. My agent pulled comps for a CMA and provided irrefutable evidence with my offer that they overpriced it by a mile. Here’s how I structured the offer: -I offered to pay my closing costs in full AND kick in for the seller’s closing costs up to a certain amount. This demonstrated to the seller that I was accommodating, and my offered price put me so far under my budget that I could pay some of their costs and still come out WAY under their asking price and in line with the market. Win-win. -I told them they didn’t have to clean the house professionally before leaving. I was going to have a cleaning crew come in regardless, so that removed a task for the seller. Win-win. -I told them if they had any furniture/items that they didn’t want to bother packing up, they could leave them behind, which helped the seller with convenience and moving costs, and scored me some NICE hardwood office furniture. Anything else that they left was sold off, and the proceeds went into my savings. Win-win. -information-only inspection contingency, no requests for repairs or credits, and a title contingency. No other contingencies since I was a cash deal. This removed a lot of possibilities for the deal to fall through. -I let them pick the closing date because I didn’t have a strict timeline. Win-win. -I offered my entire proposed price as the EMD, to be deposited no later than 72 hours after they accepted the deal, to show that I was dead serious and ready to perform. The proposed price was much lower than their list price, but it was right in line with the market. The CMA, along with the structure of the deal, got me that house. They didn’t even want to counter because the structure was so strong that they were scared of losing me (their agent told my agent this after the deal). My agent said that in all his years of real estate, my offer was the best one he had ever seen, and I came up with all the terms myself. Aggressive for me in terms of getting my price, but everything else was accommodating for the seller and trying to let them feel like they were in the driver’s seat. I gave them 24 hours to respond. They replied in less than ONE. I LOVE MY HOUSE!
I just watched a dozen videos on managing a lowball offer (I am a Listing agent). Your information is excellent. Seller Net Sheets for each offer is outstanding advice. Best of luck in your practice.
Good job explaining in detail. Plus leaving the low ball offer standing unless you find a another favorable is a very good thought. Circumstances and motivation DO change with time.
Thank you for the video. The one thing I was looking to hear a comment about is properties on the market for 144 days, 366 days, 92 days et al. You get the picture. I'm looking at properties with hobby farm potential. Either they have farm facilities up or they have good acreage. But the ones I'm looking at all are on the market for a long period of time. Thus many have already lowered their prices as far back as 2 weeks to last fall. I naturally assume the ones who haven't changed their price in many months might be more open to a low offer. But then, I think 'Well maybe they are stubborn and won't accept anything less'. Another thought is 'they've got to be desperate to sell'. And so with those 3 conflicting thoughts (and more) I don't know what to do. The ONLY ones I know to try a lower offer have "very motivated buyer" on it. I need a hobby farm for my physical therapy. But I am disabled and cannot work. So I have a fixed, extremely low, income and have to pay cash for my home. 90% of the properties I am looking at are not 'hot' properties because of the weathered barn, collapsing sheds, worn out lawns, or manufactured homes. Worse yet, I can't go look at them in person until after I make either a 'suggested' offer, or an offer. (Suggested offer-I mean that the seller's/agent would be asked if a lower offer or an offer in the low $130's would be considered). I know this is a lot of specific info. I don't expect a video on all of this :) But, a mention about the number of days on the market in a video. thx!
Speaking as someone that is currently selling 9 properties including 5 plots of land, this helped me. We have received lowball offers on the plots of land, gone back with counteroffers and heard nothing. Next time we get one I shall certainly be asking the question "what is the offer based on?". As it is I've just been thinking that is what people do so I must accept it. There are no comparable properties in the area and we would still stand the risk of them lowering the offer further if surveys showed any issues.
So I have a quick question. Me and my husband are looking at a house. The house is being sold for $249,900 someone just backed out and it is on the market again. It was put on the market about 159 days ago would it be too low to ask for about 15-20% off of the asking price.
We are looking at a home that is listed for 549k, our realtor ran comps and she only got back 515k. The home was built in 2006 and we would have to remodel a lot of things because there have been no updates to the home. The listing price they have up is more than new homes that are completely updated in the area, do you have any advice on our specific situation? We would like to offer them the actual value of the home instead of an insanely high price. Also, they offered to hold off on presenting offers to the seller until we view the home which makes me believe that they don’t have many offers at all. It’s been on the market for 25 days. All other homes in the area have been flying off the market in under 4 days.
Hi from UK. To buy at low price......1st priority is get in a position to move quickly ...so cash buyers DO have an advantage, ( but you can be quick via a loan if you do it right. ) 2nd set YOUR best price in your head, not what a so called "market' is doing, (in UK we call these BMV or below market value purchases......the only relevsnce the normal market vaue has is to confirm just how great a bsrgsin you got) not what the seller wishes for, definately not what any agent suggests. Stick to that. It's the price you'd be very happy to buy at or just not buy. 3rd Be responsible for your transaction. ......get involved..stay involved. Don't trust your financial wellbeing to agents who only care about their own. Lazy buyers lose houses. 4th The biggest indicator of when a seller will go low is their CIRCUMSTANCES. All list prices are WISH prices. Think about it......no-one ever asks for the price they will accept. Everyone is ready to take a 5 to 10% drop as soon as they list ! 20 to 35% off a normal list price is a great deal. It's entirely dependant on you finding out what the sellers needs from the sale....note that's not what they want but what they need. You'll never get a low price from someone who doesn't need to sell. So be a detective....talk to anyone who might know about the house or the sellers circumstances. This time taken will pay off big time. 5th Leave feelings aside .......it's business. Three feelings will make you pay more...A) feeling a warm cosy feeling about how lovely it would be to live in this home...I. e. Seeing the purchase as a HOME rather than a HUGE PURCHASE B) feeling sorry for the seller ......it's not your fault they are in a poor position and very often it's their own spending habits that are the cause (though no-one likes to admit this) C) feeling it's rude or insulting to offer low. If this is you get over it or pay too much for everything. It's perfectly good manners to say something like....." I realise that to you the property is worth more, and it is possible another buyer will come along and pay more than I will. However, I know the area,the market, the property type and what I need to spend on it (no need for specifics.) So my best offer is €...............k " Then stay quiet. Let them know a few days later that the offer will still be on the table unless you have bought an alternative property in the mean time. Keep looking for an alternative. Hope this helps. John
Low ball offer is not 5k or 10k low, that's mean if some is offering really really low e.g is 30k or 40k low, but wait for a $500 or $100 less than sales price because that will really piss the sellers so always make a reasonable offer or move on to the next one in your price rang unless you know if the sellers are in trouble, but hey if you dont try you wont know. Very good information by the way.
Hi N khan, Thank you for watching and for sharing with us! Check the show more description of this week's live stream timeline for the minute marker giving you a shoutout: ua-cam.com/video/_ahFDFELy-g/v-deo.html What would you like to see next? Enjoy an amazing day! Thanks again for watching and commenting! =) Chat soon, Andrew Finney www.andrewfinneyteam.com/
Hello, my wife and i are currently looking at a house priced at 275k that was built in 1971. The house has never been updated on the inside. The exterior of the home does need work along with a driveway. Comps in the same neighborhood have sold for 200k and below and they have somewhat been updated meaning floors countertops paint and trim. What would be a good low ball offer??
I am not sure if our offer was lowball. We had it listed at 144900. She offered $137000. She was paying cash. My dad said he could only accept that if she waived the inspection. Worried the inspection would find issues and we would lose more money. She also wanted a home warranty. He told her if she came up to 140k he would agree to inspection and home warranty. She had enough cash to make up the 4000k so she accepted. In the end we met in the middle and the 140k was still at the top range for our neighborhood. We needed to sell quick and she needed to buy quick because of a divorce.
Hey Christine C! Always a pleasure to hear from you! Thank you for sharing with us. It doesn't sound as though it was a lowball offer. Consider if someone had offers 120k when ya'll were on the market for 144k. That's an example of a lowball offer. In Las Vegas the average list price to sales price ratio is roughly 2%. Which means homes generally close withing 2% of the asking price. Sounds like the offer your Dad ended up accepting was roughly the same percentage off list. 2%- 5% is under list price is fairly usual depending on if it a home was overpriced or slightly higher than the fair market value of the home. Glad to hear that everything worked out really well when ya'll sold your old home. Only 2 more days until you get the keys to your new place! Yay!!! Thanks for watching! Enjoy a marvelous day! Thanks, -Your Real Estate Geek, Andrew Finney
Appreciate your insight...very helpful. Haven't seen anything about buying a house that seller inherited. I am in the process of determining an offer for a house 2 brothers inherited. It is not their childhood home, has been somewhat neglected. The property has "good bones" and many characteristics I like. It's been on the market about 6 week. As far as I can tell I am the only one showing any real interest. I'm guessing sellers just want to sell and get what they can without doing too much work. They are asking a price that makes sense for the area on a property if it didn't need much work. My offer will be low accompanied with a respectful letter explaining my concerns. We'll see how it goes. Thanks again.
Hi Smilelyguy 3790! Thank you for watching and for sharing with us! In the situation you shared with us, you're definitely making the right move. Please let us know how it plays out for you. Sending you positive vibes everything goes your way! What would you like to watch next?
If the asking price is $100,000 and I offer $80,000, is my offer a low ball offer? What would be a reasonable offer in this example? I never pay the asking price for a house.
Thanks for the information. We are looking for single family ready- to move in house . We saw one house price $406k ,the agent we worked with she said we might can ask builder fro $370k . When it comes to negotiation she was saying that we are now in sellers market so price wont go down as base price $406k. My question is ,how much we can ask for that move in ready house ? is that good decision to put down payment $70k on that house? would you please suggest how we can go further to put offer? Thanks
Thanks for info AS A PROSPECTIVE BUYER THE TIPS REGARDING EXTRA EXPENSES LIKE RELOCATION COSTS, EXTRA TRAVELLING COSTS, MINIMAL CHANGES TO SATISFY MY REQUIREMENTS AND A COMPARISON OF VALUE TO WHAT I CURRENTLY HAVE HAVE BEEN USEFUL.
Question: I want to buy a house cash. I like a mobile home in Boulder City. The price is $330,000 but the mobile homes around it are $200,000-$250,000. I want to offer $250,000. The economy is not the greatest, is it offensive to be $80,000 under what they want in a senior community where the highest sale has been $250,000? You can get real houses cheaper than what they want. Plus it’s been on the market for 6 months.
If it's been on the market for 6 months, that speaks of their motivations. A lot of the time, the owner will have a very fixed price and won't mind wasting 6 months. This may be the case. If you're offering cash, I would still submit an offer. It's more than likely that they haven't received very many offers.
Would you consider offering 70,000$ for a 79,999$ home a low ball offer? The house was originally priced at 83,000$ but they are now selling the house at 79,999$
Hi Subscribe To Me, Thank you for watching and for your great question! It really depends on the comparable sales for the area and the seller's motivation if they'll accept an offer for 70k. One could try but if the seller finds it insulting they may not entertain any further offers from that prospective buyer. Best practice is ask your trusted real estate advisor to perform a comparative market analysis (CMA) of recent activity in the area then base your offer off the findings in a way you are comfortable. If it's not the right property, simply move one. Review your priorities and what's most important to you buying your new place then weigh your options so you can make a well-informed decision. Check out these 12 negotiation tips when buying a house: ua-cam.com/video/VN5qSiF1Hlg/v-deo.html What would you like to see next? Thanks again for watching Subscribe To Me! Enjoy a great day, Andrew Finney www.andrewfinneyteam.com/
What would you offer for a partially remodeled 109 years old house in El Paso, TX? The listing price is 105k but I find it too excessive for something that's over 100 years old.
Hi Hector Cruz, Thank you for watching and commenting! That's a great question Hector. It really depends on El Paso, TX market and if the property is in keeping with the comparable sales in the area for it's present condition. There are quite literally thousands of homes across the US that are 100+ years old with some fetching 7-8 figure prices! It's all about your local real estate market. Not to sound cliche... But it really comes down to location, location, location! Best practice here is to ask your trusted real estate advisor to perform a comparative market analysis to help you make a well-informed decision. What would you like to see next? Thanks again for watching! =) Enjoy a marvelous day! Chat soon, Andrew Finney www.andrewfinneyteam.com/
Offer the selling agent to also represent you and then they'll collect 6% instead of 3% on the sale. That's plenty of incentive to get them to negotiate with you on the price.
It sucks when ppl try to lowball u for a lot.like an example a figure that costs 15 n the offer 3 or 4 dollars...me I dont mind spendin 8 10 dollars on a figure but expecting to buy for 3 or 4 when others are selling for 12 15 or 20.and same for a game that costs 20 n they offer 10...at least 15 or 17 would be good...I feel a couple dollars off is good but not like a whole lot like ppl might xpect
I’m offering $145k for a house that has been on the market for 542 days. The seller is asking $165k. I’m asking 3% closing cost but I at least wouldn’t mind them to counter back something. Do you think I low balled?! Would I get a counter back. The son is staying there without knowledge of owner the house smells like Mary Jane and the carpet smells and looks horrible.
Great video bro , im placing my scenario here , seller tries to sell home withouth an agen at 697k , 2 1/2 weeka later 675k , one week after than an agent put it online at 750k , goes down another week after that and another agent places an ad in the daily paper for said property at 750k. So before all these observation i went and saw the home personally , im no expert , but it needs work , honestly. He says to me that the 679k initially put was for cash buyers and 750k for ppl in search of financing , his reason ...time. After leaving i observed the price changes over the weeks as i noted above. Am i low balling to offer 650k ???
We're getting ready to sell our home. If the listing agent gives away to the buyers agent any info on us and our motivation for selling they will find themselves fired. We're actually in a situation where we can stay here forever or move if the house sells for what we want. We have no intentions of buying another house until this one sells. Homes in our neighborhood generally sell with a week or two. I know exactly what each house was listed for and what they sold for, I've done my homework. We do intend to move to Vegas. We already know where we'll live during our house hunt in Vegas. All our ducks are in a row. We'll allow a home inspection, no problem. Our roof is 5 years old, our new furnace was installed less than a year ago, it's a super high efficiency one. We're even putting new sod in the backyard because the shade from the trees has thinned the grass a lot. We're getting the house painted. We're trying to decide if we want to bother with staging. Maybe we'll just get rid of our family room furniture and borrow my parents living room. It's never used and really nicely done. Question.... We have custom blinds on all our windows, should we consider put window treatments up or not? I'm not keen to spend the money but it could enhance the overall impression.
Hi Sharon Martin, Thank you for watching! It's great to hear from you! You're absolutely right! You should fire a listing agent if they divulge privileged info about your sales price or situation. Sounds like you're doing a great job prepping your home for sale. If you need help finding a top agent where you live to list your home, please let me know. On another note, please feel free to reach out to me at: Andrew@AndrewFinneyTeam.com I'm happy to help you find your new home in Las Vegas. =) Click on my website below to get the most up to date listing data updated every 15 minutes from our local MLS. Faster than even the big sites! Question... What would you like to see next? Thanks for watching! Enjoy an amazing day! Thanks, -Your Real Estate Geek, Andrew Finney www.andrewfinneyteam.com/
Hey, Andrew, we're putting in an offer tomorrow for a home that has been on the market for nearly 5 months, with price reductions every month since listed. The seller has moved and cannot buy another home until this one sells. The home is now listed at 334K and we are offering 320K (our pre-approval is 326K) and asking for seller credit for closing (5-6k) which will be added to the loan. As I watched your video I realize we are coming in at around 4.6% lower than asking price. What do you think of our chances?
Great question Doors067! That really depends... What is the average fair market value for the property you have in mind? What are your local market trends, indicators, and conditions? Based upon the answers to those questions will provide insight into if it's a lowball offer or not and what the probabilities of getting your offer accepted your local real estate market. Sending you positive vibes everything goes your way. What would you like to watch next?
We are viewing a property for 139,900 and the sellers images start with the completely updated interior but very few exterior images. We went and saw the property and it needs significant exterior work, which we would be willing to complete, but our realtor also told us the comps on the area are 127,900, would it be an insult to offer around that without asking for any assistance for the closing cost?
Hi Jerry Dixon, Thank you for watching and for sharing your IRL experiences with us! To be honest with you, I'm sure what you're asking? Please rephrase your question and provide context so I give you the best answer possible. Thanks! What would you like to see next? Thanks again for watching! =) Enjoy a marvelous day! Btw... Join us when you can during the livestreams every Wednesday at 11am PT. Love to see you there! =) Chat soon, Andrew Finney www.andrewfinneyteam.com/
"Buyers that make a lowball offer because they cant afford to pay more, what that means is..." Proceeds to explain the definition of afford - badly. Thanks man.
So I'm lucky because I've used my VA loan it's inspected and they tell me what it's worth...but if people approve VA loans on the property why are they still pricing high because we looked at homes in Maryland near DC and they where 20k (example 331k) above what my agent and VA told me?.....so why sellers apparently look at my agent like they kidnapped and murdered the entire family when I offered 300k.....I don't know what it is about the area southern Maryland but no way in hell am I buying a home with vynal or carpet no stone countertops and plastic tub showers over 250k.....picky or not I expect something to scream or pop at me master suite or kitchen living room combo when you pay above 250k when your a hour outside of any city.
You're telling people to fold on possibly getting a great deal, you are not giving solutions you just dont know how. You want a seller that's willing to negotiate if I offer 20% lower and the seller says no I'm gone, but because I didn't get my offer accepted but because he didn't even try to say no but I can take 5% off. If he says that than I'll say ok let's get an inspection then if there is other issues I might also ask him to fix them or cover closing cost. Rule 1 you need someone who is willing to negotiate.
Hi ttdokes, Thank you for watching and for sharing your opinions with us. How's your strategy working for you in the current market? Thanks again for watching! Enjoy an amazing day! Thanks, Andrew Finney www.andrewfinneyteam.com/
I feel the same. The worst the seller can say is no and you can move on. Many times I have been told I need to stop low balling....but I seem to always end up with good deals. Granted I have made some sellers not counter me, but I can live with that and move on to the next property.
In 8 Things Not to Say When Buying a House, you instructed viewers NOT to ask a seller why they're selling their house because they may not think it's any of your business. In this video, you're saying to to find out the seller's motivation - the same thing. Please clarify.
Hi MrVitalForces, Thank you for watching and for very astute observations! Yes, you're absolutely right! Perhaps something got lost in context... Here's a bit of clarification. In the 8 Things Not to Say When Buying a House video I did say it's not prudent for a "buyer" to ask the seller why they are moving. In this video, I'm referring to the "buyer agent" chatting with the listing agent about the seller's motivations and/ or "why they are selling," if the seller isn't present and happens to volunteer said information. In everyday real estate practice, this just happened the other day when I showed a home to one of my buyer clients. My clients had a question about the spa's function so I asked the seller (yes, the sellers may be present roughly a third of time during showings), the seller answered the question, then began telling my how long they lived there, what they did to the house, and where they are moving to next and why. On any given day in real estate, anything is possible. Hope that helps shed insight and context on the points in both vids? Quick question for you... What would you like to see next? Thanks again for watching! Enjoy a fantastic day! Thanks, -Your Real Estate Geek, Andrew Finney www.andrewfinneyteam.com/
Thank you. That was very helpful. I would like to see a video about what has replaced the Good Faith Estimate (GFE) forms which were discontinued in 2015.
This video is mis-titled. It should be : “ How to take advantage of the old, sick and disabled by financially raping them when they have their house. “
Thanks for the information because I am currently in this situation. We are submitting and offer for lower than they are requesting, but the home is over priced and needs to be repainted on the inside.
What stands out to me is not walking away if they reject your offer. They counter offered us and I was about to just walk away, but we will tell them our offer is still on the table.
Thanks again!!
Hi Ebony Simpson!
Thank you for watching and for the update! Great to hear from you!
Glad this video was able to help you. Did you catch the video I made from your suggestion about new home construction pros & cons? Just in case, here's the link: ua-cam.com/video/HNJ8raEee74/v-deo.html
Thanks again for watching! Let us know how it works out for you.
Enjoy a terrific day!
Thanks,
-Your Real Estate Geek, Andrew Finney
Andrew Finney Team we are under contract!!
Congrats Ebony Simpson!
YAY!!!!!!!
Very excited for you.
Please update us when you get the keys to your new place.
Thanks,
-Your Real Estate Geek, Andrew Finney
www.andrewfinneyteam.com/
Ebony Simpson congrats!
@@ebonymcghee7035 You go girl!
A friend is about to start shopping and I’ve been finding videos to send to her. You have solid advice! Here’s how I got my low cash offer accepted in LA:
I found a house in an ideal location that had been on the market for over 200 days. That neighborhood was in a fantastic location, was in great condition, had curb appeal, but it was WAY overpriced. It was nearly double the cost of all neighboring homes. My agent pulled comps for a CMA and provided irrefutable evidence with my offer that they overpriced it by a mile. Here’s how I structured the offer:
-I offered to pay my closing costs in full AND kick in for the seller’s closing costs up to a certain amount. This demonstrated to the seller that I was accommodating, and my offered price put me so far under my budget that I could pay some of their costs and still come out WAY under their asking price and in line with the market. Win-win.
-I told them they didn’t have to clean the house professionally before leaving. I was going to have a cleaning crew come in regardless, so that removed a task for the seller. Win-win.
-I told them if they had any furniture/items that they didn’t want to bother packing up, they could leave them behind, which helped the seller with convenience and moving costs, and scored me some NICE hardwood office furniture. Anything else that they left was sold off, and the proceeds went into my savings. Win-win.
-information-only inspection contingency, no requests for repairs or credits, and a title contingency. No other contingencies since I was a cash deal. This removed a lot of possibilities for the deal to fall through.
-I let them pick the closing date because I didn’t have a strict timeline. Win-win.
-I offered my entire proposed price as the EMD, to be deposited no later than 72 hours after they accepted the deal, to show that I was dead serious and ready to perform.
The proposed price was much lower than their list price, but it was right in line with the market. The CMA, along with the structure of the deal, got me that house. They didn’t even want to counter because the structure was so strong that they were scared of losing me (their agent told my agent this after the deal). My agent said that in all his years of real estate, my offer was the best one he had ever seen, and I came up with all the terms myself. Aggressive for me in terms of getting my price, but everything else was accommodating for the seller and trying to let them feel like they were in the driver’s seat.
I gave them 24 hours to respond. They replied in less than ONE. I LOVE MY HOUSE!
I just watched a dozen videos on managing a lowball offer (I am a Listing agent). Your information is excellent. Seller Net Sheets for each offer is outstanding advice. Best of luck in your practice.
Good job explaining in detail.
Plus leaving the low ball offer standing unless you find a another favorable is a very good thought.
Circumstances and motivation DO change with time.
Thank you for the video. The one thing I was looking to hear a comment about is properties on the market for 144 days, 366 days, 92 days et al. You get the picture. I'm looking at properties with hobby farm potential. Either they have farm facilities up or they have good acreage. But the ones I'm looking at all are on the market for a long period of time. Thus many have already lowered their prices as far back as 2 weeks to last fall. I naturally assume the ones who haven't changed their price in many months might be more open to a low offer. But then, I think 'Well maybe they are stubborn and won't accept anything less'. Another thought is 'they've got to be desperate to sell'. And so with those 3 conflicting thoughts (and more) I don't know what to do. The ONLY ones I know to try a lower offer have "very motivated buyer" on it. I need a hobby farm for my physical therapy. But I am disabled and cannot work. So I have a fixed, extremely low, income and have to pay cash for my home. 90% of the properties I am looking at are not 'hot' properties because of the weathered barn, collapsing sheds, worn out lawns, or manufactured homes. Worse yet, I can't go look at them in person until after I make either a 'suggested' offer, or an offer. (Suggested offer-I mean that the seller's/agent would be asked if a lower offer or an offer in the low $130's would be considered). I know this is a lot of specific info. I don't expect a video on all of this :) But, a mention about the number of days on the market in a video. thx!
Speaking as someone that is currently selling 9 properties including 5 plots of land, this helped me.
We have received lowball offers on the plots of land, gone back with counteroffers and heard nothing. Next time we get one I shall certainly be asking the question "what is the offer based on?". As it is I've just been thinking that is what people do so I must accept it.
There are no comparable properties in the area and we would still stand the risk of them lowering the offer further if surveys showed any issues.
So I have a quick question. Me and my husband are looking at a house. The house is being sold for $249,900 someone just backed out and it is on the market again. It was put on the market about 159 days ago would it be too low to ask for about 15-20% off of the asking price.
We are looking at a home that is listed for 549k, our realtor ran comps and she only got back 515k. The home was built in 2006 and we would have to remodel a lot of things because there have been no updates to the home. The listing price they have up is more than new homes that are completely updated in the area, do you have any advice on our specific situation? We would like to offer them the actual value of the home instead of an insanely high price. Also, they offered to hold off on presenting offers to the seller until we view the home which makes me believe that they don’t have many offers at all. It’s been on the market for 25 days. All other homes in the area have been flying off the market in under 4 days.
Hi from UK. To buy at low price......1st priority is get in a position to move quickly ...so cash buyers DO have an advantage, ( but you can be quick via a loan if you do it right. ) 2nd set YOUR best price in your head, not what a so called "market' is doing, (in UK we call these BMV or below market value purchases......the only relevsnce the normal market vaue has is to confirm just how great a bsrgsin you got) not what the seller wishes for, definately not what any agent suggests. Stick to that. It's the price you'd be very happy to buy at or just not buy. 3rd Be responsible for your transaction. ......get involved..stay involved. Don't trust your financial wellbeing to agents who only care about their own. Lazy buyers lose houses. 4th The biggest indicator of when a seller will go low is their CIRCUMSTANCES. All list prices are WISH prices. Think about it......no-one ever asks for the price they will accept. Everyone is ready to take a 5 to 10% drop as soon as they list ! 20 to 35% off a normal list price is a great deal. It's entirely dependant on you finding out what the sellers needs from the sale....note that's not what they want but what they need. You'll never get a low price from someone who doesn't need to sell. So be a detective....talk to anyone who might know about the house or the sellers circumstances. This time taken will pay off big time. 5th Leave feelings aside .......it's business. Three feelings will make you pay more...A) feeling a warm cosy feeling about how lovely it would be to live in this home...I. e. Seeing the purchase as a HOME rather than a HUGE PURCHASE B) feeling sorry for the seller ......it's not your fault they are in a poor position and very often it's their own spending habits that are the cause (though no-one likes to admit this) C) feeling it's rude or insulting to offer low. If this is you get over it or pay too much for everything. It's perfectly good manners to say something like....." I realise that to you the property is worth more, and it is possible another buyer will come along and pay more than I will. However, I know the area,the market, the property type and what I need to spend on it (no need for specifics.) So my best offer is €...............k " Then stay quiet. Let them know a few days later that the offer will still be on the table unless you have bought an alternative property in the mean time. Keep looking for an alternative. Hope this helps. John
I’d like to ask if more often than not. Is a used condo not a buyer market. I’ve notice I’ve got lots of choices here in Calgary
Housing is finally starting to cool down. I’ve been low balling tons of properties here in the Dallas area. Hoping the market pulls back more!
Lol how did that cool down go? Hahahaha
@@Noneya2224 Really good lol! Got a property in dallas at 230k, now worth 345k after remodel!
Low ball offer is not 5k or 10k low, that's mean if some is offering really really low e.g is 30k or 40k low, but wait for a $500 or $100 less than sales price because that will really piss the sellers so always make a reasonable offer or move on to the next one in your price rang unless you know if the sellers are in trouble, but hey if you dont try you wont know. Very good information by the way.
Hi N khan,
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What is better 15 year or 30 year mortgage fixed?
I just bought my house in LA last week. My offer 1.39M was accepted by the seller who listed 1.46M for his house as I understand what the he wants.
Hello, my wife and i are currently looking at a house priced at 275k that was built in 1971. The house has never been updated on the inside. The exterior of the home does need work along with a driveway. Comps in the same neighborhood have sold for 200k and below and they have somewhat been updated meaning floors countertops paint and trim. What would be a good low ball offer??
Thank you for your service!
I am not sure if our offer was lowball. We had it listed at 144900. She offered $137000. She was paying cash. My dad said he could only accept that if she waived the inspection. Worried the inspection would find issues and we would lose more money. She also wanted a home warranty. He told her if she came up to 140k he would agree to inspection and home warranty. She had enough cash to make up the 4000k so she accepted. In the end we met in the middle and the 140k was still at the top range for our neighborhood. We needed to sell quick and she needed to buy quick because of a divorce.
Hey Christine C!
Always a pleasure to hear from you!
Thank you for sharing with us. It doesn't sound as though it was a lowball offer. Consider if someone had offers 120k when ya'll were on the market for 144k. That's an example of a lowball offer.
In Las Vegas the average list price to sales price ratio is roughly 2%. Which means homes generally close withing 2% of the asking price. Sounds like the offer your Dad ended up accepting was roughly the same percentage off list. 2%- 5% is under list price is fairly usual depending on if it a home was overpriced or slightly higher than the fair market value of the home.
Glad to hear that everything worked out really well when ya'll sold your old home. Only 2 more days until you get the keys to your new place! Yay!!!
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Enjoy a marvelous day!
Thanks,
-Your Real Estate Geek, Andrew Finney
Good! But how about NOT accepting a low offer
Appreciate your insight...very helpful.
Haven't seen anything about buying a house that seller inherited. I am in the process of determining an offer for a house 2 brothers inherited. It is not their childhood home, has been somewhat neglected. The property has "good bones" and many characteristics I like. It's been on the market about 6 week. As far as I can tell I am the only one showing any real interest. I'm guessing sellers just want to sell and get what they can without doing too much work. They are asking a price that makes sense for the area on a property if it didn't need much work. My offer will be low accompanied with a respectful letter explaining my concerns. We'll see how it goes. Thanks again.
Hi Smilelyguy 3790! Thank you for watching and for sharing with us! In the situation you shared with us, you're definitely making the right move. Please let us know how it plays out for you. Sending you positive vibes everything goes your way! What would you like to watch next?
Great video thank you!
If the asking price is $100,000 and I offer $80,000, is my offer a low ball offer? What would be a reasonable offer in this example? I never pay the asking price for a house.
Thanks for the information. We are looking for single family ready- to move in house . We saw one house price $406k ,the agent we worked with she said we might can ask builder fro $370k . When it comes to negotiation she was saying that we are now in sellers market so price wont go down as base price $406k. My question is ,how much we can ask for that move in ready house ? is that good decision to put down payment $70k on that house?
would you please suggest how we can go further to put offer?
Thanks
Love your videos!
Thank you Shirley! I'm glad you enjoy them. 😊
Thanks for info
AS A PROSPECTIVE BUYER THE TIPS REGARDING EXTRA EXPENSES LIKE RELOCATION COSTS, EXTRA TRAVELLING COSTS, MINIMAL CHANGES TO SATISFY MY REQUIREMENTS AND A COMPARISON OF VALUE TO WHAT I CURRENTLY HAVE HAVE BEEN USEFUL.
Question: I want to buy a house cash. I like a mobile home in Boulder City. The price is $330,000 but the mobile homes around it are $200,000-$250,000. I want to offer $250,000. The economy is not the greatest, is it offensive to be $80,000 under what they want in a senior community where the highest sale has been $250,000? You can get real houses cheaper than what they want. Plus it’s been on the market for 6 months.
If it's been on the market for 6 months, that speaks of their motivations. A lot of the time, the owner will have a very fixed price and won't mind wasting 6 months. This may be the case. If you're offering cash, I would still submit an offer. It's more than likely that they haven't received very many offers.
Would you consider offering 70,000$ for a 79,999$ home a low ball offer? The house was originally priced at 83,000$ but they are now selling the house at 79,999$
Hi Subscribe To Me,
Thank you for watching and for your great question!
It really depends on the comparable sales for the area and the seller's motivation if they'll accept an offer for 70k. One could try but if the seller finds it insulting they may not entertain any further offers from that prospective buyer. Best practice is ask your trusted real estate advisor to perform a comparative market analysis (CMA) of recent activity in the area then base your offer off the findings in a way you are comfortable. If it's not the right property, simply move one. Review your priorities and what's most important to you buying your new place then weigh your options so you can make a well-informed decision.
Check out these 12 negotiation tips when buying a house: ua-cam.com/video/VN5qSiF1Hlg/v-deo.html
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Andrew Finney
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I see an all cash offer as a good thing for buyer if place can't be loaned on
What would you offer for a partially remodeled 109 years old house in El Paso, TX? The listing price is 105k but I find it too excessive for something that's over 100 years old.
Hi Hector Cruz,
Thank you for watching and commenting!
That's a great question Hector. It really depends on El Paso, TX market and if the property is in keeping with the comparable sales in the area for it's present condition.
There are quite literally thousands of homes across the US that are 100+ years old with some fetching 7-8 figure prices! It's all about your local real estate market. Not to sound cliche... But it really comes down to location, location, location!
Best practice here is to ask your trusted real estate advisor to perform a comparative market analysis to help you make a well-informed decision.
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Andrew Finney
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@@AndrewFinney Thank you for responding!
I love and hate at the same time the way you say accepted haha
Is it bad to ask why they are selling the house ?
I like the tip about keeping the offer in the table 👌🏿
If I'm a Cash Buyer - does that tend to persuade the Listing agent to better assist the buyer?
Offer the selling agent to also represent you and then they'll collect 6% instead of 3% on the sale. That's plenty of incentive to get them to negotiate with you on the price.
Learnt more ways in going about making offer ie be pre pared give info
Is asking 1.5M for 1.9M house a low offer even if the house is a bit dated and needs some paint?
Hell no. Just be ready for a counter offer
Mabel Tasi Meyie ok thanks!
It sucks when ppl try to lowball u for a lot.like an example a figure that costs 15 n the offer 3 or 4 dollars...me I dont mind spendin 8 10 dollars on a figure but expecting to buy for 3 or 4 when others are selling for 12 15 or 20.and same for a game that costs 20 n they offer 10...at least 15 or 17 would be good...I feel a couple dollars off is good but not like a whole lot like ppl might xpect
I’m offering $145k for a house that has been on the market for 542 days. The seller is asking $165k. I’m asking 3% closing cost but I at least wouldn’t mind them to counter back something. Do you think I low balled?! Would I get a counter back. The son is staying there without knowledge of owner the house smells like Mary Jane and the carpet smells and looks horrible.
Great video bro , im placing my scenario here , seller tries to sell home withouth an agen at 697k , 2 1/2 weeka later 675k , one week after than an agent put it online at 750k , goes down another week after that and another agent places an ad in the daily paper for said property at 750k.
So before all these observation i went and saw the home personally , im no expert , but it needs work , honestly. He says to me that the 679k initially put was for cash buyers and 750k for ppl in search of financing , his reason ...time. After leaving i observed the price changes over the weeks as i noted above. Am i low balling to offer 650k ???
How bad would it be to change my offer after the seller accepted? I unfortunately think i have offered 50k more than what the price is actually worth
Alex Martinez owch.
We're getting ready to sell our home. If the listing agent gives away to the buyers agent any info on us and our motivation for selling they will find themselves fired. We're actually in a situation where we can stay here forever or move if the house sells for what we want. We have no intentions of buying another house until this one sells. Homes in our neighborhood generally sell with a week or two. I know exactly what each house was listed for and what they sold for, I've done my homework. We do intend to move to Vegas. We already know where we'll live during our house hunt in Vegas. All our ducks are in a row. We'll allow a home inspection, no problem. Our roof is 5 years old, our new furnace was installed less than a year ago, it's a super high efficiency one. We're even putting new sod in the backyard because the shade from the trees has thinned the grass a lot. We're getting the house painted. We're trying to decide if we want to bother with staging. Maybe we'll just get rid of our family room furniture and borrow my parents living room. It's never used and really nicely done. Question.... We have custom blinds on all our windows, should we consider put window treatments up or not? I'm not keen to spend the money but it could enhance the overall impression.
Hi Sharon Martin,
Thank you for watching! It's great to hear from you!
You're absolutely right! You should fire a listing agent if they divulge privileged info about your sales price or situation. Sounds like you're doing a great job prepping your home for sale. If you need help finding a top agent where you live to list your home, please let me know.
On another note, please feel free to reach out to me at: Andrew@AndrewFinneyTeam.com I'm happy to help you find your new home in Las Vegas. =) Click on my website below to get the most up to date listing data updated every 15 minutes from our local MLS. Faster than even the big sites!
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Enjoy an amazing day!
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-Your Real Estate Geek, Andrew Finney
www.andrewfinneyteam.com/
Thank you for all the value!
Really Nice info, Thank You
Hey, Andrew, we're putting in an offer tomorrow for a home that has been on the market for nearly 5 months, with price reductions every month since listed. The seller has moved and cannot buy another home until this one sells. The home is now listed at 334K and we are offering 320K (our pre-approval is 326K) and asking for seller credit for closing (5-6k) which will be added to the loan. As I watched your video I realize we are coming in at around 4.6% lower than asking price. What do you think of our chances?
I think go lower. seller is obvs motivated to sell.
How did it pan out ? John
Ron S buy it at the price they asked for or not at all... scumbag move trying to undercut someone in that situation
Is 9k off of 95k fair?
Great question Doors067! That really depends... What is the average fair market value for the property you have in mind? What are your local market trends, indicators, and conditions? Based upon the answers to those questions will provide insight into if it's a lowball offer or not and what the probabilities of getting your offer accepted your local real estate market. Sending you positive vibes everything goes your way. What would you like to watch next?
Does not work this way in Toronto
We are viewing a property for 139,900 and the sellers images start with the completely updated interior but very few exterior images. We went and saw the property and it needs significant exterior work, which we would be willing to complete, but our realtor also told us the comps on the area are 127,900, would it be an insult to offer around that without asking for any assistance for the closing cost?
Great info
i really enjoy all your videos.
What would you do when your agent goes to the bank and ask them for more money than you offer to start with?
Hi Jerry Dixon,
Thank you for watching and for sharing your IRL experiences with us!
To be honest with you, I'm sure what you're asking? Please rephrase your question and provide context so I give you the best answer possible. Thanks!
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Btw... Join us when you can during the livestreams every Wednesday at 11am PT. Love to see you there! =)
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Andrew Finney
www.andrewfinneyteam.com/
"Buyers that make a lowball offer because they cant afford to pay more, what that means is..." Proceeds to explain the definition of afford - badly. Thanks man.
So I'm lucky because I've used my VA loan it's inspected and they tell me what it's worth...but if people approve VA loans on the property why are they still pricing high because we looked at homes in Maryland near DC and they where 20k (example 331k) above what my agent and VA told me?.....so why sellers apparently look at my agent like they kidnapped and murdered the entire family when I offered 300k.....I don't know what it is about the area southern Maryland but no way in hell am I buying a home with vynal or carpet no stone countertops and plastic tub showers over 250k.....picky or not I expect something to scream or pop at me master suite or kitchen living room combo when you pay above 250k when your a hour outside of any city.
You're telling people to fold on possibly getting a great deal, you are not giving solutions you just dont know how. You want a seller that's willing to negotiate if I offer 20% lower and the seller says no I'm gone, but because I didn't get my offer accepted but because he didn't even try to say no but I can take 5% off. If he says that than I'll say ok let's get an inspection then if there is other issues I might also ask him to fix them or cover closing cost. Rule 1 you need someone who is willing to negotiate.
Hi ttdokes,
Thank you for watching and for sharing your opinions with us.
How's your strategy working for you in the current market?
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Enjoy an amazing day!
Thanks,
Andrew Finney
www.andrewfinneyteam.com/
I feel the same. The worst the seller can say is no and you can move on. Many times I have been told I need to stop low balling....but I seem to always end up with good deals. Granted I have made some sellers not counter me, but I can live with that and move on to the next property.
“Assepted”
This guy seems so lovely
In 8 Things Not to Say When Buying a House, you instructed viewers NOT to ask a seller why they're selling their house because they may not think it's any of your business. In this video, you're saying to to find out the seller's motivation - the same thing. Please clarify.
Hi MrVitalForces,
Thank you for watching and for very astute observations!
Yes, you're absolutely right! Perhaps something got lost in context...
Here's a bit of clarification. In the 8 Things Not to Say When Buying a House video I did say it's not prudent for a "buyer" to ask the seller why they are moving. In this video, I'm referring to the "buyer agent" chatting with the listing agent about the seller's motivations and/ or "why they are selling," if the seller isn't present and happens to volunteer said information.
In everyday real estate practice, this just happened the other day when I showed a home to one of my buyer clients. My clients had a question about the spa's function so I asked the seller (yes, the sellers may be present roughly a third of time during showings), the seller answered the question, then began telling my how long they lived there, what they did to the house, and where they are moving to next and why. On any given day in real estate, anything is possible.
Hope that helps shed insight and context on the points in both vids?
Quick question for you... What would you like to see next?
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Enjoy a fantastic day!
Thanks,
-Your Real Estate Geek, Andrew Finney
www.andrewfinneyteam.com/
Thank you. That was very helpful.
I would like to see a video about what has replaced the Good Faith Estimate (GFE) forms which were discontinued in 2015.
Hi Vital Forces,
You got it!
Just added it to my video list. I'll give you shout out once it's made!
Thank you!
"watch the full video" aka. Up my view count for Google's algorithm .
So whats wrong with that? He put a lot of effort into the video.
... asepted ...
This guy doesn't explain he does not support "low ball" offers because his commission is reduced.
The house is priced at $95K and I offered $65K
This video is mis-titled. It should be : “ How to take advantage of the old, sick and disabled by financially raping them when they have their house. “
when they have “to sell” their house
I don't think so
Would still be better then going bankrupt