Here's the thing. There's a "modest" low offer and then there's stupid. Nothing backfires quicker than a poorly executed "low ball" offer. No reputation is harder to shake than being notorious for bringing stupidly low offers to the table. If you really just want an exercise in writing offers, practice on your relatives.
Before putting pen to paper on a contract a great Realtor researches recent activity, solds, assessed price, recent price reductions and several other factors relevant to the transaction. If a home just dropped their asking price 40,000 going in with an extremely low offer within a few days is not a recipe for happy campers.
Market value is simply this: what a REASONABLE and willing seller and a REASONABLE and willing buyer will agree upon. Are there any "steals" to be had? Perhaps when circumstance forces someone into a quick liquidation or when sellers are not using the services of a great Realtor you will see a transaction well below market value. The only other time you're likely to see an extremely low price succeeding is when a major problem has been uncovered or when a property is part of a larger trade.
By law, I have to inform my sellers of any offer. Imagine that the seller has listened well to pricing strategy and has priced their home fairly; even slightly below market value. Now, this quiz isn't rocket science: what do you think happens when they hear of an offer that is 50,000 under a "more than fair" asking price? If you guessed tell the buyers to pound sand you are correct. With good coaching they will sometimes stop fuming long enough to counter the offer -- at or ABOVE list price. It is just not a good way to try to save buyers money!
In auctions there is often a reserve bid so everyone knows not even to dream about bidding lower than that. We don't have that in real estate -- we rely on professionals knowing their business.
Better not to raise expectations and waste time promising an offer on a home only to produce an insulting offer with little chance for forward movement. If your client insists on trying a "low ball wonder"...at the very least, a courtesy call to the listing Realtor could save everyone headache and heartache. We can't reveal what our seller's bottom line is, but we can certainly indicate whether they would be receptive to a harshly low offer.
By using a great Realtor, the seller is never pressured into an under par offer. Only the one hit wonder Realtors are more concerned with selling at any price. Make sure you put your most precious possession into good care and keeping!
Before putting pen to paper on a contract a great Realtor researches recent activity, solds, assessed price, recent price reductions and several other factors relevant to the transaction. If a home just dropped their asking price 40,000 going in with an extremely low offer within a few days is not a recipe for happy campers.
Market value is simply this: what a REASONABLE and willing seller and a REASONABLE and willing buyer will agree upon. Are there any "steals" to be had? Perhaps when circumstance forces someone into a quick liquidation or when sellers are not using the services of a great Realtor you will see a transaction well below market value. The only other time you're likely to see an extremely low price succeeding is when a major problem has been uncovered or when a property is part of a larger trade.
By law, I have to inform my sellers of any offer. Imagine that the seller has listened well to pricing strategy and has priced their home fairly; even slightly below market value. Now, this quiz isn't rocket science: what do you think happens when they hear of an offer that is 50,000 under a "more than fair" asking price? If you guessed tell the buyers to pound sand you are correct. With good coaching they will sometimes stop fuming long enough to counter the offer -- at or ABOVE list price. It is just not a good way to try to save buyers money!
In auctions there is often a reserve bid so everyone knows not even to dream about bidding lower than that. We don't have that in real estate -- we rely on professionals knowing their business.
Better not to raise expectations and waste time promising an offer on a home only to produce an insulting offer with little chance for forward movement. If your client insists on trying a "low ball wonder"...at the very least, a courtesy call to the listing Realtor could save everyone headache and heartache. We can't reveal what our seller's bottom line is, but we can certainly indicate whether they would be receptive to a harshly low offer.
By using a great Realtor, the seller is never pressured into an under par offer. Only the one hit wonder Realtors are more concerned with selling at any price. Make sure you put your most precious possession into good care and keeping!
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