Real estate in my area, like much of the US, is slowing. With prices as high as they are and avg rates stuck around 6%, houses are really just sitting for a long time.
Its really starting to feel like a buyers market but prices are really stuck at a point that still feels unreasonable. My wife and I are thinking about buying this year but honestly we are in no hurry to at all and I don't really care if it happens or not. I am considering just starting to throw really lowball offers out there just to see what happens. Has anyone else done this with any success in the past? Are there rules of thumb with this strategy I should consider? General thoughts?
Anybody having any success with lowball offers?
byu/conconxweewee1 inRealEstate
Posted by conconxweewee1
5 Comments
Total waste of time.
I’ve seen a lot of houses close for 10-15% less than lost price recently. I’ve also seen some very stubborn sellers just sit on their houses convinced that it has gone up 20% in value since late 2022/2023 when my market peaked. You have no idea which kind of seller you’re dealing with but it doesn’t hurt to try.
I’m not a real estate agent, but what I’ve heard is that some real estate agents are reluctant to do it because the other agent might get annoyed at them/it would reduce their network of goodwill in the area.
But I 100 percent agree some of these houses that aren’t selling should be getting low ball offers.
Don’t focus on list price. Instead,
– Carefully consider what’s important to you. The wrong house at a huge discount off list price can be a bad decision.
– Do detailed CMAs to show what a property is worth compared to similar choices on the market. Many sellers have good agents who have comped out the house to show a realistic selling price. Everyone needs to get over the idea that 60 or 90 days on market means that a house is tainted. Even a house that’s been sitting for a while might be the best choice, and a fair price, at that particular time.
The market doesn’t care about what people “feel” about it. The market dictates the values. But that’s not to say someone won’t bite on a lowball.
I have a house coming up for sale soon and I want it gone fast. So I’m what they call a “motivated” seller. I may just say yes to a lowball offer.
But fair warning, be prepared for getting a “yes” answer. Now you’ve committed to someone. Don’t back out.