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buylowsellhigh_IHB

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So I'm 0 for 3 on my offers right now:





1. Offered 665k, asking $700k (countered 700k)


2. Offered 690k, asking 689k (REO, out-offered)


3. Offered 665k, asking $700k (countered 695k)





Offer 1 and 3 are with the same agent. With these BS counters, i'm sure the agent is sending a message to us. "I'm too cool to be lowballed." Now, I'm wondering if the agent is stringing the buyer along, telling them not to accept the offer? This is the sense I am getting. there's absolutely NO way a seller shouldn't even consider those, and i'm even curious if the agent bothered telling the seller those offers?





Also... for the real estate pro's out there. Mind games. If say a home just had a reduction in pricing, into the "good" zone. How soon after do they usually expect to receive offers? I'm thinking... if they lower the price from 730k to 700k, theres no way they will accept an offer the next day for 660k, but perhaps if i let it sit for a week or two, it may have better chances?





The third one came back earlier this week, I was actually a little relieved that they countered... felt like the offer was too high. If these homeowners are not afraid to lower their homes by 20-30k increments, the counter offers seem like its not characteristic of the home owners... Dumb agents...
 
I think you are over thinking the offer - counter offer process. I think you are smart and clever. And I think you are trying to use your cleverness to catch the handle on a falling knife. My guess is that no matter how smart or perceptive you are, the chances of catching the knife by the handle are not good, and the consequences far outweigh potential benefits. Classic risk vs. reward.<p>




buylow - I am not trying to put you down. I am trying to give you positive, critical imput based on your post here and elsewhere. And I wish you all the best. Good Luck.
 
buylowsellhigh,





having gone through several times this myself, here is my simple suggestions for you to consider:





a. If you have a certain price that you feel comfortable enough to get the house, then stick with the price as your walkaway regardless what they counter or listed. make sure you determine that walk away price before you submit the initial offer. It is a slippery slope once you decide to get away with your target price.





b. your initial offer can be quite a bit lower your walk away. Hoping you can get the house somewhere between your walk away and your initial price.





c. There are a lot of sellers out there have certain pricing "floor" that they are not willing go under - usually it is either their net cost base after commission or a certain amount they need in order to move up. I won't get offended, and just move on.





d. Just remember this market is still sliding, if I were you, I will try to find a "deal" if I really want to buy. Relatively ok deals are out there, you just have to find it.





e. In terms of who much to offer initially, you really need to do your homework. Make sure you find out the comps, and make sure at an absolute min. you need to get 2004/ 2005 price before you jump in. Any thing higher than that, you will be in an instant neg. position.





f. Also, another caution, that price range will probably be hit the hardest when this whole thing is over.





g. Lastly, if you are not in too much a hurry to get a house, consider this a "bargain hunting" or a "fishing" experience, if you get what you want at a good price, then great, it not, no big deal. So you won't get too frustrated.





Good luck
 
<p>Awgee/irvine123 thanks for your advice no offense taken whatsoever. </p>

<p>Just trying to understand the market, business is business, money is money, and I don't get "attached" to a home. It either suits me (price/layout) or it doesn't. This market is quite transparent to me the way its going. I just didn't understand how such a miniscule reduction from their asking price gets declined, not sure if its the agent feeding buyer stupid comments.</p>

<p>Again I'm on an open ended lease, so i'm not in any type of time constraint.</p>

<p>Irvine123, why would you think my price range will be the hardest hit? Say the market takes a 20% dump... 20% of 700k is $140k. But a $1000k home will take a $200k dump. But I don't see the house price percentage being linear thru the price band... The way I see it, "excesively" priced homes (>$1M) should have a higher percentage drop than "run of the mill" homes. For example, 4br/3ba home, someone can just tell themselves the economy isn't as good, so instead of a $1M home they'll get a $800k home. Demand is still there but shifted toward the lower priced homes. If $400/mo can no longer buy a BMW, $400/mo can still buy a Honda. But really, im a noob, and i think of everything as commodities, when perhaps they shouldn't.</p>
 
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