You offer a 1 line "call me" response and a 12 line signature........maybe the reverse would be more helpful to a consumer in a Q&A section.
Seriously, who cares if the seller is "offended"?
Besides, unless you're the Amazing Kreskin, there's no way of knowing.
To address the second point first, some sellers will be offended if you offer a penny less than the asking price. They already think their house is worth more than the listing price. Especially owners who've in some way customized or spent a lot of time on the house. I once talked to a seller who had a 3 bed/1.5 bath duplex in a blue-collar community. He wanted maybe 25% more than the comps. Why? Because he'd spent months--literally, about 3 months--meticulously painting each room. He was convinced that this justified an unreasonably high price. On the other hand, I've spoken to investors who've bought properties for 30%-40% under what the sellers were asking.
In short, unless you're a mindreader, you have no idea whether an offer will be considered "insulting."
Now to address my first point: Who cares?
A seller has three choices when receiving an offer: (1) Accept, (2) Reject, or (3) Counter. If the seller accepts your first offer (even if it's only 80% of the listing price), you probably offered too much. If the seller rejects the offer, you offered too little. You could come back and offer more. Or you could wait and--if the property is overpriced--wait for the seller to reduce the price. If the seller counters, then you're in the ballpark. You're in the game. And you haven't given up too much at the beginning.
And the seller isn't going to be your lifelong friend. Nor is the seller going to write you a glowing recommendation for your job search or for your small business. If the seller's "insulted," so be it.
And finally: At least you made an offer. Let the seller be insulted with all the people who took a look at the home and then didn't even make an offer.
Oh, and a P.S.: Make sure your offer is no greater than the value of the property. And never end up paying more. In the example I gave above of the seller with the duplex, you could have offered him 80% of what he wanted and still have overpaid. Always, always, always start off by know what the property is worth (based on comps). Then, if you choose, offer less. Don't assume that the listing price is an accurate reflection of the property's value.
Hope that helps.
If the writers want to know how to contact us, all they have to do is click on our names, and our profiles come up with all our information (Including disclosing our location on the internet). If they wanted to call us, they would do so.
A superstar? I think not. But she sure is out "their" (sic).
I'll look into the lobbying Congress angle, though.
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Depends on the seller, their ugency to sell, and the validity of the list price!
I would say that, in general, most sellers won't jump up and down clapping their hands with glee with an offer 20% below their list price, cash or no cash.
That being siad, if the house is overpriced and has been sitting on the market for a while.........then you might be able to work something out. Just make sure your agent has smelling salts when the offer is first presented!
Kidding aside - if the home is reasonably priced.......it's unlikely $400,000 will work......but.........you have nothing to lose! Give it a try!
(what does your agent have to say, assuming you have one??)
You could also look at what has sold in the area and what the original listed price was. This would give you an idea of the percentage between what the list price was and what the ultimate selling price was. Now you have two ways to view comparable property prices.
The next thing would be the condition of the house. Has it been renovated? is it a '70's time capsule? is the roof in shape? Obviously you'll need to have any property inspected. The point is quality and renovation bring value. Something that requires work might fetch a lower price.
Bottom line, make an offer that feels right based on some of the specific data suggested above. Cash offers are frequently welcome by sellers as Banks have stringent requirements. Don't be concerned about offending anyone. This is just a business transaction. If the offer doesn't work for the seller, they will counter you and the game begins. Good luck.
Please follow up, let us know what happens with your offer. If you love the house - give it a try, as you ave nothing to lose!
All the best.........
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The next best advantage is you can close faster since you don't have to wait for the lender to process the loan which may be something the seller really needs and might decide to take less money for a quick close.
As an aside, no one in the real estate profession has any feelings. Our feelings all washed away with the financial crisis
Never be afraid to present an offer, particularly if it is cash. The response will vary depending on location, Seller's situation and the market. It is the Broker's resposibility to present any offer, unless instructed not to do so if the price offered is below certain amount. Go for it!
Lastely, keep in mind that in all offers, other than asking for owner finance it is all cash to a seller. Basically your offer of $100k less than asking price based on it being a cash offer is simply telling a seller, "if I do not seek a loan for my money will you take $100k off the price?" Addtionally, there would have to be the ability for the seller to take less. Many are not in an equity position. Good luck.
I don't think it's all about the list price, I think it's more about the fair market suggested price. The real estate economy is still declining and I won't be surprised if we see another 10% drop over the next few years.
With this in mind, it further depends on how much you want this property, and how much otherws want this property. Has it been on the market for a long time? What's the suggested fair market price? Is it a short sale or a traditional sale? What's the condition of the property? Are there a lot of similar homes for sale and available, or is this property unique?
If you're looking for investment properties, feel free to check out the Las Vegas market; we have some AMAZING investment opportunities; best in the nation, in fact.
Rita Wilson-DeGazon, Chicago, Il.
That is where an experienced and professional RealtorÂ® becomes a true asset. If presented properly to the seller, along with the justifying comparables and the benefits of a cash buyer, such an offer could prove to be the win-win all parties should be seeking.
The one important thing that I tell my sellers is that, we don't have to accept an offer just because it was submitted. I would rather have offers/contracts coming in as oppose to no action at all. You need to have a starting point but you also need to be realistic.
One thing to remember is that people are emotionally attached to their homes.
DAVID COOPER Foreclosure Specialist in Las Vegas with 35 years Investing Experience. For a Free list of bargain homes, click website or Call +1-702-355-8807
Don't all offers have to be presented?
Who cares if you insult the seller? You have cash and want to make an offer. Get after it. The worst that can happen is they say no.
I will tell you that I find cash buyers are the most difficult buyers to deal with because they think they have the golden goose in CASH. Frankly, most sellers don't care where the money comes from as long as it closes.
Now, if you find a seller that needs to sell and you offer cash with a 14 day turn around, that 20% may not look so bad, but it is all about finding a seller that NEEDS to sell. Best
I have been involved with multiple all cash offers that were accepted because they were cash offers. Not only did the Seller know that there weren't any issues with financing, but they also knew that they would be able to close quickly.
If you are serious, have the cash, and the seller wants to sell. Then it's about coming to an agreement about the sales price. If your final and highest price you are willing to pay if $400k, then make your offer.
Will the seller take your offer? Who knows. They might.
Any seller who gets "insulted" by an offer, whether cash or not, is not serious about selling-- they are emotionally attached.
But as a buyer, you should realize that the seller doesn't really care if you have cash. Because a buyer with a loan that is ready to buy and can pay them more money will most likely get the property. The seller gets cash whether it's from you or from the buyer's bank.
If this post answered your questions, GIVE ME A THUMBS UP!
Nate Wolf was recently named a FIVE STAR REALTOR by Charlotte Magazine. He is a top producing real estate sales broker, representing both buyers and sellers. He is a member of the National Association of Realtors, The Charlotte Regional Realtors Association and the Carolina Multiple Listing Services. He is licensed in multiple states and serves all areas of Metro Charlotte from Lake Norman to Lake Wylie and Uptown / Center City to SouthPark and Ballantyne.
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DAVID COOPER Foreclosure Specialist in Las Vegas with 35 Years Investing Experience. For a Free List of
bargain homes, check website or call +1-702-499-7037