Home Selling in 55805>Question Details

Mt, Home Seller in 55805

Low-ball offer!?!? Is this normal? My Duluth MN 3 bed/2 bath home has been on the market since June 15 2008.

Asked by Mt, 55805 Fri Nov 21, 2008

We have dropped the price twice, started at $123,900, went to $119,900 on 10/10, then to $113,900 on 11/1. We have seen an increase in interest since the most recent price reduction, and I have gotten feedback from several agents (via an Agent Open, and other agents that work with mine) that this price is very competitive. One said something like, "you've gotta sell that house, because I'll never sell my listing until that one is gone." We had our first offer today, for $95,000. It was a verbal offer, the buyer's agent basically said she wasn't going to waste her time writing it because she knew we would likely say no (which of course we did). We have another showing scheduled tomorrow. I told my agent to tell the buyer's agent 1) try again and 2) we have another showing tomorrow.

Are low-ball offers like that the trend these days? There are homes in the neighborhood listed for less than 100K, but they are generally 2bed/1bath and in need of major upgrades

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Tell your agent to get the Buyer's Agent to bring paper. You must have an offer in writing to negotiate. Then counter.
Web Reference: http://www.MariaSellsKC.com
0 votes Thank Flag Link Mon Nov 24, 2008
Mt,

It is a seller's market and today's buyers know they are in the driver's seat. Low ball offers are common during these times.

People receiving offers should treat them seriously by engaging the potential buyer with some sort of counter that will hopefully catch their eye. Offer a home warranty, pay a portion of the closing expense, but counter with something before they move on to the next home and make another offer.

You have a buyer, low ball or not.......it's up to you weather or not you pass of work with them. Our recommendation is to work with them.

Good luck.
0 votes Thank Flag Link Mon Nov 24, 2008
Thanks for the feedback. I was just wondering if offering 17% below list was commonplace, especially after the property had been reduced in price twice.

Now for an update: the "low-ball" phone call came on Friday. A second party viewed my home on Saturday. Both the "low-baller" and the other party made offers that were presented to me on Sunday. The Saturday people offered full list, less 4% in closing costs to be paid by me (which was something huge like $4500). The "low-baller" must have gotten a talking-to from his agent, his offer came at only $900 below list, with seller to pay only $1500 toward closing costs, which ended up being a better offer by far. He also wanted a much quicker close, which is totally ideal for me who is in a two mortgage situation.

So again, thanks for the feedback, and we are officially under contract, sale pending, with hopes for a quick closing on or before December 6!!!
0 votes Thank Flag Link Mon Nov 24, 2008
Mt,

Congrats on getting an offer. There is an old adage in real estate - "Your first offer is often your best." I would do everything that you can to bring them back to the table. Your showing today means nothing - I am sure you have had plenty of them over the past 5 months, but this was your first offer.

At the very least run back to them and make them a counteroffer. You risk far too much playing hardball given your situation with the two homes. You are a motivated seller and an offer is the best thing for you right now. This is your opportunity to wash your hands of the place, learn from your mistakes and move on.

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Sun Nov 23, 2008
If you get another low-ball offer, you may want your agent to ask the prospective purchaser's agent how he or she came up with the offer or ask what the basis for the offer is. More often than not there will not be a good answer or an answer at all forthcoming. Right now people are listening too much to the media and aren't realizing that not all areas are in trouble. But, if the offer isn't in writing, it isn't an offer at all. Someone who is serious about purchasing your home is going to take the time to put the offer in writing and have it presented. And a good agent will put together some sold comparables in your area to provide to the buyers so that they can see what homes in your neighborhood are selling for which will hopefully guide the buyers to make a fair offer on your home. When someone low-balls he or she is hoping for a deal and if you would have accepted it, the next question would be would they have been willing to put it in writing...
0 votes Thank Flag Link Fri Nov 21, 2008
We are coming into the slowest time for real estate (Thanksgiving to January 1st) so you may not see another offer for a while. I would try to work with the buyer and come to an agreement. Most offers come in about ten percent low so they're not too far off. We have a saying in real estate, "your first offer is usually your best offer" so don't dismiss it.
Michael Doyle Realtor
0 votes Thank Flag Link Fri Nov 21, 2008
I agree with Lori that this wasn't a real offer. Then again, it was only 17% low on your house... and I've seen much worse. Would you take $105,000? That's close to "half way," which is what I see a lot of buyers trying to really accomplish...
0 votes Thank Flag Link Fri Nov 21, 2008
Low ball offers are not neccessarily the trend but if buyers are not excited about your house they may think at that price the house is worth it. Buyers typically understand the situation that they are in control and some will make low offers till one accepts and believe me someone will. In my opinion any offer is a good offer because now you are starting to see what price will draw some buyers. If you see several offers that appear low to you it may just be the current market value of your home.
Web Reference: http://wwwl.lennyfrolov.com
0 votes Thank Flag Link Fri Nov 21, 2008
My opinion is that you did not get an offer. If the buyer was serious, you would have received the offer in writing. At that point, I would have recommended that you counter offer instead flat out refusing it. Have you received any other offers within the 5 month period that your home has been listed? You are in danger of getting more low ball offers the longer your home stays on the market. It looks like you are finally getting some attention, probably because you are hitting the correct price point, but probably not still where you are supposed to be. Have your agent pull the recent SOLD listings in your neighborhood-and by all means-do not respond to any more verbal offers! Good luck!
0 votes Thank Flag Link Fri Nov 21, 2008
by the way, here's a link to the listing.
0 votes Thank Flag Link Fri Nov 21, 2008
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