I get questions like that a lot, just recently a buyer said something similar with a similar (percentage-wise) starting bid. I think that buyer will be under contract by Monday and he started with a similar low bid. The worst thing they can do is say "no". This is a buyer's market is most area codes, so I wouldn't call a bid like this (80%) "laughable". I'm sure it won't make the seller smile but hey, at least they're getting an offer. Do whatever makes sense to you. More importantly: If you are not working with a buyer's agent, be careful what you tell a listing agent who works for the seller. Anyway, the worst thing that can happen is that you can find out how serious the seller is about selling. Good luck!
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, WY 82070
The Somers (answer below) hit the nail on the head (no pun intended)...
The "After Repair Value", a.k.a. "ARV" - is important to know. And if you are going to be getting an ARV loan, then lender is going to want to make sure the ARV ratio is also in balance.
There are certain ratios that are used (your Realtor and/or lender should advise you on this)..
Best of Luck,
Actually Roti you do have comparable. Have your Realtor compare.
Bed / Bath.
ONLY use Solds for the last three months. Also check the pendings.
Now make a list of repairs, with reasonable cost.
Deduct repairs from market value.
Now you have the facts not just some " Laughable " number
Ask that your offer be presented in person by your Realtor. They will say no, therefore have your Realtor write a letter stating your case, and ask to have the seller sign it. Showing that he has read it.
Side note: a smart listing agent would never allow his seller to sign anything other than an acceptance or rejection.
If I were the listing agent. I would lower the price 1% every week until for 23 weeks before I sold it 23%
from the offer. Remember they just lowered it 8.5%.
No offer is "laughable" if it is presented correctly.
I tell my buyers lets look at what the after repair value and what the other ones are selling for versus the listing price. If the house is price right then you can look at the average differential (percentage of what the sales price is versus the listing price).
Also, see my website below for other helpful hints.
Good luck !