Fran our experience has been different. I don't know the specifics of this particular property but in this market, my opinion is that there's not a thing wrong with a lowball offer. Of course every deal is different and every seller's motivation is different so buyer's need to be flexible. There's lots of good properties out there and it's better to have to repaint the living room to a color you like than paying $100K more.
There's a lot of strategy to getting the best price Clint and the offer is the beginning of the strategy. The negotiation process is EVERYTHING so if your agent isn't committed to going to bat for you, then they are probably right - the seller won't take it. It's the agents job to lay the options out to the seller's agent and believe me, the seller's agent wants the deal to work. This is reality:
$995 for $860 (86.4%) this was last month in Carillon - I believe this was our first offer and the seller took it pretty much as offered. All repairs were done by sellers.
$699 for $560 (80.1%) in 5/2008 in Highpointe - The listing agent worked hard with us to make it happen. All repairs were done by seller.
$2.495 for $1.9 (76.1%) in Rosemary also 5/2008 which is a strong community. We started much lower on this one. We did every inspection imaginable and had thousands of dollars of repairs done by the seller.
$224,900 for $211,200 in Feb 2008 ($209K selling price plus $2,200 to get renter out and get immediate occupancy) (93.9%). This is one of the hardest negotiations we've had because the seller was a broker, they started at $279K, did a bunch of remodeling and $225k was what they had in it. They were very resistant, we recommended that the buyer not go over $209K but they really wanted it. Seller was saying they had an appraisal at $229K. It only appraised at $215K . We started at about $165K (73.3%) on this one, I think.
$1.695 for $1.275 (75.2%) This is one where the buyer only wanted this particular unit when they came to us so they were sold before they came to us but what is the harm in trying to get the best deal possible. There were several negotiations back on forth on this one. Wanna say we started at $1.1. Notice the "not rounded" up prices. Even $2k could be the difference between a rejection and acceptance. I believe this seller declined $1.26 (LOL).
None of these were short sales or forclosures. We've had little luck with short sales and foreclosures. Our experience is that lenders are not nearly as flexible as sellers and the contracts that they want you to use leave too much exposure for the buyer as to future claims, repairs etc. We have 2 offers out on short sales and have been waiting forever. Have had numerous buyers walk on offers because the banks never responded.
Hold your ground Clint! Don't overpay. An 83.5% offer is extremely reasonable, especially for a first offer. Depending on what the seller's situation is, you may have even started lower. Just depends on the listing history, what they have in it, upcoming mortgage rate adjustments etc. There's a world of information in the public records to help you predict motivations of the seller.
If they get mad, so what? We've had the seller's realtor hang up on us after receiving our offer and say they weren't even going to present it. They must present it so that agent did and the seller took the deal as written I believe.
Also, you don't necessarily have to go "as is" . Even at lowball prices, sellers will often do repairs.
Different agents present in different ways but we almost ALWAYS go written on offers rather than verbal. It's tangible, it's real and it's enforceable if the seller accepts it. We will go verbal on fine tuning certain terms but I like written on price. Just the way we work.
This is a big decision with your hard earned money and there are still plenty of deals in this market. Of course I don't know anything about the property that you're placing an offer on but your timing is right. Season is about over, the number of sales traditionally drop after July and that seller may not see another ofter until next year and THAT'S what your agent should be telling the seller's agent.
You're in the driver's seat Clint. Buyers are rare and your agent should be thankful to have you because he/she may not get another buyer until next year either (no matter what they tell you)! Good Luck!
