I've been watching a home for over 6 months. It's located in a Nothern California Town and listed in the low

Asked by Janet Lucich, Folsom, CA Mon Aug 18, 2008

$500's - how do I offer a competitive ($300's) price without offending the owners?

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Jim Walker, Agent, Carmichael, CA
Mon Aug 18, 2008
If I had a buyer who was interested in a human being owned house listed at $500K and my analysis showed it to be only worth $300K ( and my buyer really had the Jones for just that house) I would ask the listing agent. " Why the price?" If a consumer asks that question she might use the sales pitch " Oh it' s got 16 foot ceilings and a Svarovski Chandelier in the dining room. etc. etc.
If an agent puts the question to her she may have to suggest ways to negotiate.

Another thought pops to my mind. - This is frequently the case.. It could be that both the seller and buyer have unrealistic expectations.. Maybe the house is worth $400K : Way less than the sellers inflated pirce but is your offer price of $300K based on reality (comparable sales) or is it based on fantasy and dreams like the sellers price?

Now when it comes to a bank owned house. There is little logic or psychology going on. Banks price their houses and handle their negotiations based on formulas devised by Franz Kafka in the 19th century.
1 vote
Sue Archer R…, Agent, Palm Harbor, FL
Mon Aug 18, 2008
You will do best using your realtor to negotiate on your behalf. They will prepare a comparative market analysis and demonstrate why your offer is a good offer. You need to consider not only price, but terms when making an offer. If your offer is a low offer, then I think you need to investigate what is the seller's needs in making a sale. They may need to sell it for $500K because they owe that much, even if it isn't worth it. They may have a lot of equity and you can negotiate other terms to make this affordable to you and meet thier needs as well. Your realtor is a master negotiator and should be the best person to find a winning approach. Good luck!
Web Reference:  http://www.suearcher.com
0 votes
Linda Carroll…, , Lacey, WA
Mon Aug 18, 2008
Hi Janet! I have two answers that are polar opposites:

Do you have to have that house at any cost? Then offer a good price, because you want the Seller's in a good mood throughout the transaction.

Do you have anything to lose if they don't take your low offer? Then go ahead an make your offer exactly where you want to. You have nothing to lose--and they might take it!

I hope this helps! Best wishes, Linda
0 votes
Lisa Cartola…, Agent, Oakland, CA
Mon Aug 18, 2008
Hi Janet,

Most likely the sellers will not be happy with the offer. Before you do that I would say that having your Realtor do some investigating before you do may not be a bad idea. If the sellers have not reduced the price, this may indicate that they are not willing to budge on the price. Have they recieved other offers and if yes, why did none of those work out?

If would be a good idea to do your homework on the sellers motivation first to see what their level of willingness is in terms of a lower price first.

Good Luck,

Lisa Cartolano
Alain Pinel Realtors
Web Reference:  http://www.LisaCartolano.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Mon Aug 18, 2008
simply is...you cant. however you have to think business is business so dont hold off because of feelings. include with your offer a letter and even comparable listings or sold listings why you are offering what you are. if they HAVE or NEED to sell you mahy be in business. If they dont need or have to all they can say is no, you wont know unless you try.
Web Reference:  http://www.ScottSellsNH.com
0 votes
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