Home Buying in Costa Mesa>Question Details

Ttran86hcm, Home Buyer in Costa Mesa, CA

The Grove at mesa del mar, currently listed at 599k, thinking to make an offer at 549k, is it considered as a low ball offer?

Asked by Ttran86hcm, Costa Mesa, CA Tue Sep 6, 2011

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Hello Ttran86hcm,

Any offer is that, an offer and if I were listing the home you offered on I would encourage the sellers to counter and see what happens. You never know and you said what your initial offer will be but only you know what you are willing to pay.
The feedback you have received so far is good, consult your agent, look at the sale comps and depending on other factors in your offer maybe you will come to agree on a price and open escrow. I am seeing sales prices of right around 3 - 5% off the asking price of resale homes when the offer was written. This information is for resale homes.

The Grove are new homes so typically the seller (the builder) won't negotiate their price much if any at all. They may give you upgrades of a certain amount and maybe you can get a deal of some kind by using their financing. If you offer is for one of the new homes in Phase 2 then just ask the new home sales agent in the sales office, they are usually pretty up front about their pricing. They figure if you don't want to pay it maybe the next people will. All about supply and demand, only a few new houses and a lot of buyers want a new house.

Good luck with your home search,
Brian Wilson, Realtor
DRE# 01321478
0 votes Thank Flag Link Tue Sep 6, 2011
Dear Buyer:
The answer is always in the question. I assume you are not working with an agent who can negotiate on your behalf. Builders have costs they want to recoup in a sale. New homes generally demand a higher price as they are move in ready. Are you aware of the prices Grove homes have sold for? The prices for the model you want to bid on?
The builder will decide what price he wants...if homes are moving slowly he may deal with you. Are you coming in at a number that is your final offer or are you hoping to have a counter offer or two? Strategy is everything.
Also are you pre-qualified versus pre-aprroved or are you hoping to obtain financing arrange by THE GROVE? IF you are pre-qualified which essentially makes you an all cash buyer and an appealing prospect to the seller you may be able to negotiate on the price to your advantage.
It is your money and an offer can always be made, you have to decide what your desired outcome is to be. Is this the home you must have, or are you willing to wait for another that better fits your budget?
Again a good agent can help you walk through these decisions.
Best regards,
Valerie O'Brien
0 votes Thank Flag Link Wed Sep 7, 2011
Back on Aug. 23rd when you asked this type of question, I said they currently only had 1 of their 2100sqft models in escrow according to the MLS & had already done a development-wide price reduction from a sale back in November. They had an MLS sheet that stated it closing in Nov., but the tax record actually states the sale closed at the end of March. This one had sold for $650K at the end of March, not in Nov.

So, since March they've reduced the price from $650K to $599K for this model & at the moment have 2 in escrow. One that went under contract Aug. 7th & the other July 7th.

They have 3 others that look like they're ready, they're releasing them in phases. If they had 10 in escrow, I'd say you don't have a chance, but that's not the case. If you can contact me, I can work with you & give the builder a compelling report as to why they should take your offer.

562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Tue Sep 6, 2011
No, always leave room to negotiate. If it's a traditional sale that does not involve a bank, the seller most likely wants a high price but you can recoup expenses in the terms. If and when (s)he counters, ask for closing costs, a home warranty, termite repair, anything and everything. They can say no or they can settle for half, but you want a deal and they want to "feel" like they got a good shake.

0 votes Thank Flag Link Tue Sep 6, 2011
I consider 10% off the asking price a lowball offer. You're a little over 8% off. Go for it. The worst that can happen is they say no or give you a counter offer.

Brad Davidson
Broker - We Help-U-Buy Realty
Web Reference: http://www.wehelpubuy.com
0 votes Thank Flag Link Tue Sep 6, 2011
No, would not consider that a lowball offer. Good starting point and you can see where the negotiations go. I would be happy to meet with you and discuss the recent sales in the area. Have a great evening and I look forward to hearing from you.
0 votes Thank Flag Link Tue Sep 6, 2011

No I wouldn't consider that a low ball offer... Let me know if I can write it up on your behalf.


Scott Bingham - Beach Cities Real Estate
Web Reference: http://www.bcre.com
0 votes Thank Flag Link Tue Sep 6, 2011
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