How many of you are putting low ball offers?

C

Cubic Zirconia_IHB

New member
Just curious if anyone is putting any offers at all.. I am so ready to buy, but still not buying for the obvious reasons. But that hasn't stopped me from putting low ball offers on properties I like. So far only one place has gone for a price around the figure I had in my mind, but didn't act fast enough to put an offer.



How about you?



Cubic
 
I have thought about it but haven't done it only because I think that unfortunately there are still too many knife-catchers willing to put in a higher offer than I am, so my offer would not be considered. I don't think the seller gives two hoots that the lower offer may have much stronger financing because they are willing to take the risk if it means an extra however-many-thousands of dollars. I know because I was just in that situation last spring. I had some very low-ball offers submitted to me from buyers with GREAT credit, a large down, all their ducks in a row... and I ultimately decided to take a risk on the buyer who offered the most money but whose financing was more shaky. Unless you're talking about an REO property -- in which case it just seems like too often they are holding out or slow on the draw. :-
 
[quote author="Cubic Zirconia" date=1223079257]Just curious if anyone is putting any offers at all.. I am so ready to buy, but still not buying for the obvious reasons. But that hasn't stopped me from putting low ball offers on properties I like. So far only one place has gone for a price around the figure I had in my mind, but didn't act fast enough to put an offer.



How about you?



Cubic</blockquote>


I've visited almost a dozen condos in the last 3 days (Irvine, Tustin Ranch, SouthCoast metro). More than half were not what the listing agent advertised it as. i.e. A 2 bedroom condo is really 1 bedroom with an enclosed den. Most of the properties I liked were scooped up by investors before I could offer. The others I like are about $25-40K outside of my price range. I wonder what the new housing bill will do to prices, was hoping to see them become more affordable...not less...
 
I did have the same problem, but I looked at only in Irvine though, Most of the 2 bedroom condos are actualy 1 bedroom and a loft for my price range or you do get options for condos that are > 16 years old, Inorder to get a decent condo in irvine which are <7-8 years old is more than 430k, which is little out of my budget and I dont see any price decrease for this small condos at all.
 
I stopped making lowball offers earlier this year. Content to let others take those properties and wait until what I think is a lowball is actually current market value.
 
[quote author="LJinOC" date=1223088435][quote author="Cubic Zirconia" date=1223079257]Just curious if anyone is putting any offers at all.. I am so ready to buy, but still not buying for the obvious reasons. But that hasn't stopped me from putting low ball offers on properties I like. So far only one place has gone for a price around the figure I had in my mind, but didn't act fast enough to put an offer.



How about you?



Cubic</blockquote>


I've visited almost a dozen condos in the last 3 days (Irvine, Tustin Ranch, SouthCoast metro). More than half were not what the listing agent advertised it as. i.e. A 2 bedroom condo is really 1 bedroom with an enclosed den. Most of the properties I liked were scooped up by investors before I could offer. The others I like are about $25-40K outside of my price range. I wonder what the new housing bill will do to prices, was hoping to see them become more affordable...not less...</blockquote>


I did have the same problem, but I looked at only in Irvine though, Most of the 2 bedroom condos are actualy 1 bedroom and a loft for my price range or you do get options for condos that are > 16 years old, Inorder to get a decent condo in irvine which are <7-8 years old is more than 430k, which is little out of my budget and I dont see any price decrease for this small condos at all.
 
This is how i see it.... Let the market slap them silly. It is like allied force taking Normandy beach. Why would you want to be the first wave storming the beachhead??? You are going to get shot up and bloodied. Just wait and chill and see how it goes.... being the last ship to land on Normandy is better then being on the first ship and you get to to say i was there on that day. Same situation here.... don't be the first to get shot up....
 
To be honest, I want to be a knifecatcher but I'm getting beat to the punch.

My lowballing offers aren't high enough!



My patience is running out...
 
(*cough, cough*).... I lowball the banks directly.



er... i'm sorry did anybody hear that?



:lol:



this is about the only way to do it and get a decent offer. It takes some messaging, wine and dine, but you will eventually get there.



-bix
 
[quote author="rickhunter" date=1223105974]To be honest, I want to be a knifecatcher but I'm getting beat to the punch.

My lowballing offers aren't high enough!



My patience is running out...</blockquote>
patience grasshopper...let the market come to you. In my opinion, there is no use of throwing low ball offers on nice properties because the sellers have either gotten offers higher than yours or they will just not even respond as they will feel insulted.
 
[quote author="usctrojanman29" date=1223107402][quote author="rickhunter" date=1223105974]To be honest, I want to be a knifecatcher but I'm getting beat to the punch.

My lowballing offers aren't high enough!



My patience is running out...</blockquote>
patience grasshopper...let the market come to you. In my opinion, there is no use of throwing low ball offers on nice properties because the sellers have either gotten offers higher than yours or they will just not even respond as they will feel insulted.</blockquote>


Let them beg you to take the house of their hands because the Mello Roos are killing them( 40 years is a long time). They can't eat, they can't save any money in 401K for retirement. Money used to be easy to borrow, now it's not, no easy HELOC to bail them out.
 
What?s considered a low ball offer 10% off list?

I?m hoping that with all the negative news out there, sellers will become more realistic in terms of their pricing.

There are a number of sellers still in denial.

Some won?t counter or accept an offer even slightly under asking.
 
[quote author="tenmagnet" date=1223334153]What?s considered a low ball offer 10% off list?

I?m hoping that with all the negative news out there, sellers will become more realistic in terms of their pricing.

There are a number of sellers still in denial.

Some won?t counter or accept an offer even slightly under asking.</blockquote>


That is the problem when the market is still in the denial stage. I think it is pointless to be making offers now. In two or three years when acceptance gives way to desperation, sellers will realize they need to accept lowball offers if they get any at all.
 
If you need a visual aid with those stages that IR is referring to, this should help:





<a href="http://www.losanjealous.com/2006/03/24/adam-morrison/">Adam Morrison?s Five Stages of Grief</a>
 
[quote author="tenmagnet" date=1223334153]What?s considered a low ball offer 10% off list?

I?m hoping that with all the negative news out there, sellers will become more realistic in terms of their pricing.

There are a number of sellers still in denial.

Some won?t counter or accept an offer even slightly under asking.</blockquote>


ten,



The info you're looking for can be found for Irvine only <strong><a href="http://www.irvinerealtorsite.com/IrvineDowns.xls">here </a></strong>on the sales data sheet I've posted. Very few have been successful in closing at huge discounts, but one was nearly 40% off! Sadly some have been overbid by 20%. Average and median spread is at around 4% list to sale price discount. You can sort/filter to take a look at your target price range and dates to get better info.



Loan info is updated through 2/3rds of Sept. so far.



Good luck, and see if you can get Gary to wash your car again.



- Ni-ban
 
[quote author="IrvineRealtor" date=1223339854][quote author="tenmagnet" date=1223334153]



ten,



The info you're looking for can be found for Irvine only <strong><a href="http://www.irvinerealtorsite.com/IrvineDowns.xls">here </a></strong>on the sales data sheet I've posted. Very few have been successful in closing at huge discounts, but one was nearly 40% off! Sadly some have been overbid by 20%. Average and median spread is at around 4% list to sale price discount. You can sort/filter to take a look at your target price range and dates to get better info.



Loan info is updated through 2/3rds of Sept. so far.



Good luck, and see if you can get Gary to wash your car again.



- Ni-ban</blockquote>


Appreciate the link, thanks for putting it together.

The information is extremely helpful.



Just to make sure I?m interpreting the numbers correctly.

On the third property from the top, 15385 Nantes Circle,

The 23.41%, is that the % number off the list price?
 
[quote author="tenmagnet" date=1223341340][quote author="IrvineRealtor" date=1223339854]



ten,



The info you're looking for can be found for Irvine only <strong><a href="http://www.irvinerealtorsite.com/IrvineDowns.xls">here </a></strong>on the sales data sheet I've posted. Very few have been successful in closing at huge discounts, but one was nearly 40% off! Sadly some have been overbid by 20%. Average and median spread is at around 4% list to sale price discount. You can sort/filter to take a look at your target price range and dates to get better info.



Loan info is updated through 2/3rds of Sept. so far.



Good luck, and see if you can get Gary to wash your car again.



- Ni-ban</blockquote>


Appreciate the link, thanks for putting it together.

The information is extremely helpful.



Just to make sure I?m interpreting the numbers correctly.

On the third property from the top, 15385 Nantes Circle,

The 23.41%, is that the % number off the list price?</blockquote>


Yes, line item #28 - 15385 Nantes - listed for $775K, sold for $628K = 23% off.

I also see a pattern from the hi-rise builders (Scholarship addresses particularly) having a large spread.

But note the home closing on 2153 Watermarke (line item #1204) was listed for $257K and sold for $332K on 9/30.



Good luck, and wade carefully.
 
[quote author="awgee" date=1223114381]I am still circling, and do not even smell any blood yet.</blockquote>


I'm with you. I expected to see blood by now, but nothing. Eventually these overpriced MBS will have to come to their true value.

Once we see fire sales and securities marked to market then we'll know where we stand.



Right now, I can't tell you whether or not buying a 2K sqft home in Irvine should be worth 650K, 500K, 400K, 300K? No clue, and I'm not sticking my money in until I know.
 
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