Ricky, Home Buyer in Farmington Hills, MI

By how much should you low ball these days while making an offer in 'Buyer's market' (michigan)?

Asked by Ricky, Farmington Hills, MI Fri Aug 24, 2007

This is for a home that does not have good comparables in its neighborhood. The seller has listed for $290k, can we make an offer for $250k without offending them?

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Since the market is so bad right now, sellers are taking huge losses on their homes. You have to take into consideration how long the home has been on the market, how many price reductions it's had, the SEV (state equalized value), if they are close to loosing the home to forclosure and what houses in the area have sold for. At an asking price of 290K, 250K is a good starting price. If you have a good realtor presenting your offer, he/she should explain to the other agent or seller that they should not be offended. This is a business and an offer 40K under asking price is better than no offer at all.
Geoff Leach ABR
Prudential Great Lakes
248-701-5947
0 votes Thank Flag Link Fri Aug 24, 2007
Low balling is not a crime. Start at the bottom and stop where you feel it is worth for what you are paying for.
0 votes Thank Flag Link Thu Jun 3, 2010
Ricky,

How are you? My name is Aris Mendez with Allen Tate Realtors. In today's market a seller or sellers that get offended by an offer in actuality do not really want to sell their property. To give you a vague idea between 10 & 20%, depending on the type of property, condition and area. But just remember that all situations are different. To get a better idea go to my web site ( http://www.greenvilleURhome.com ) prior Just enter the MLS# or the property address where it states " How Much is My Home Worth " and I will send you an updated Comparative Market Analysis on this home. Any questions please give me a call.

I look forward to being your trusted real estate source!
0 votes Thank Flag Link Sat Oct 11, 2008
Hello Ricky,

Just as all the other professional Realtors have advised there isn't a crystal ball that you can look into and select a percentage that will justify a standard discount ; instead each community, home, location, upgrades, condition, reason for selling, needs will determine how much leverage you can expect. Also, how do you plan to purchase, what can you bring to the table, do you need closing cost participation? Many variables to consider.
If you are in need of assistance I am available. Go to my website I have an excellent break down of the Farmington community with one click you can assess the area. Feel free to call for an appointment.

http://www.rosesimms.com

Rose Simms
Keller Williams Realty
248-471-2443
Web Reference: http://www.rosesimms.com
0 votes Thank Flag Link Thu Oct 2, 2008
Good question and good answers. There are many factors when making that offer. How long it has been on the market? Existing price vs original price? Terms & condition being offered and looking at the comps.

Sit down with your Realtor and please discuss the variables and come up with an offering price. Since we Realtors are educators, the sellers agent has probably framed how an offer will be made and the process. Good luck.
Web Reference: http://pamwinterbauer.com
0 votes Thank Flag Link Fri Aug 24, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
Contact
Ricky, Excellent question. My answer mirrors Maureens. I would like to add that an offer is based upon price and TERMS.

The best way to approach your price offer is by backing it up with facts. Example: we decreased our offer because the home needs new gutters, driveway is cracked, and the roof needs replacing.

Examples for terms: we'll allow you to remain in the home "X" days without per diem payment. There are many other ways you can offer non-monetary benefits to the sellers, ask your agent to explain them to you.

As to "there are no good comparables in the neighborhood". Many times there are no comparables within the neighborhood. A buyers agent (you do have a buyers agent, right?) can also run a Statistical Comparison for the City, zip code, and school district. Sometimes this gives you a better range.
0 votes Thank Flag Link Fri Aug 24, 2007
We counsel our sellers when they list a home, telling them to expect that the offers will be low. That is just the market these days. I don't want them to be insulted by anything. Buyers market, or sellers market, all that really matters is that the seller and the buyer come to mutually acceptable terms. We suggest that they counter any offer to see if they can find a common ground with the buyer. If they can't, we wait for the next offer.
Web Reference: http://miOaklandCounty.com
0 votes Thank Flag Link Fri Aug 24, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
I tell my sellers there is no such thing as a low ball offer in this market. We counter every offer until both parties can come to acceptable terms.
It is important to consider, how long the house has been on the market, other competition, recent sales in the neighborhood. In my area, many or not most of the sellers are smart and those that NEED to HAVE to sell are pricing correctly for this market.
0 votes Thank Flag Link Fri Aug 24, 2007
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