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BigRock
Joined: 07 Feb 2007
Posts: 11
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 Posted: Sat Jun 09, 2007 12:22 pm GMT Post subject: Making an offer $100,000 below asking price |
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| A condo has been on the market for over a year sitting at $400,000, 18 out of 20 units in that complex are still empty. I know for a fact that it cost the builder $200,000 to build. We plan to make an offer of $300,000. I do not think that is an 'insulting' offer, they should be happy to make a large $100,000 profit on their condo. What do you think? |
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Divadkire
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| Posted: Sat Jun 09, 2007 2:32 pm GMT Post subject: Make an offer $150 Below |
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Try going even Lower. That way his counter will be closer to $300K which you seem willing to spend.
If you start at $300K they will counter with $350K.
I would be careful because if I read your post coorectly 18 of the units are unoccupied. That is a bad sign.
If they want to make asomething and stop paying the taxes and loan on the property they will take a lowball offer. If they say no way, just walk away and they will have to come back after you. |
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john p
Joined: 10 Mar 2006
Posts: 1820
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| Posted: Sat Jun 09, 2007 3:09 pm GMT Post subject: |
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What's the condo fee? If 18 of 20 are open, who's paying for the maintenance?
I put a $450k offer on a $750 house back in Spring 2006. It needed about $50-75 of work. I got the whole "insult" speech from them through my buyer's agent (who wasn't shy). This house is now still on the market for $599k.
On Valentines Day 2006, I put an offer of $540k on a house that was $650k (it was asking in the $700's in the Fall of 2005. The seller ended up remodelling their kitchen and selling in July 2006 for something like $550k. They should have taken my offer...
Don't be shy or feel bad for them. You are taking a big risk too. Even if you get it for $300k, it could still go down further.
KEEP IN MIND THE INTEREST RATE!! It's skyrocketing as of the last couple of months. This is a great bargaining chip to negotiating a lower price. Remember, for a seller, the higher the interest rate, the higher the monthly payment, the fewer buyers can afford it, so you have fewer competitors if interest rates drive the monthly mortgage higher.
Even though $300k is a lot of money, this segment does have "sub-prime" new home owners so some of these folks will be foreclosing and the other buying competitors that were "subprime" are out of the picture as well as the babyboomers that were buying to invest.
Make really, really low offers, find out what the "floor" is. |
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BigRock
Joined: 07 Feb 2007
Posts: 11
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| Posted: Sat Jun 09, 2007 4:30 pm GMT Post subject: |
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| Thanks for the input. Supposedly 3 units are 'pending', but those have been pending for about 3 months now so i'm not really sure whats going on there. If there are further developments i'll try and post an update here. The condo fee is $200, and I don't think there is a whole lot of maintenance yet except for mowing and plowing. |
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Divadkire
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| Posted: Sat Jun 09, 2007 4:52 pm GMT Post subject: More People need to get in on lowballing |
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The sellers will start to change when more people soften them up with lowball offers.
The previous poster is correct, don't be shy. If there agent gives you the insult speech just chuckle and try back in three months if the house is stay listed. |
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Hank
Joined: 27 Apr 2007
Posts: 37
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| Posted: Mon Jun 11, 2007 2:27 pm GMT Post subject: Re: Making an offer $100,000 below asking price |
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| My $64,000 question is where? |
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mgg
Joined: 04 Jun 2007
Posts: 4
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| Posted: Tue Jun 12, 2007 3:26 pm GMT Post subject: |
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| I'm planning on doing the same thing. There is a condo I'm interested which is listed at $399. It's already be dropped from $419 and $409. I know it's only really worth about $350 at most, and that is if you have faith that the downturn is over. I'm going to offer $340, but I don't see how they'd take it. They bought it three years ago for $375 so they are already losing money. It will never sell for $399, though. It saddens me to just watch it sit there. |
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john p
Joined: 10 Mar 2006
Posts: 1820
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| Posted: Tue Jun 12, 2007 3:45 pm GMT Post subject: |
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Even if it is a "short sale" for the seller, chances are that what they are hoping to get into will be cheaper by 6 percent or so anyway, so if they can get what they want for $80k cheaper, can't they just roll the $35k loss onto their new note? If they have a Realtor, they lose another 3-5 percent as well.
I'm sure it saddens them more to see it sit there. |
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Heloc
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| Posted: Tue Jun 12, 2007 5:37 pm GMT Post subject: Condo |
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| Forget about buying a condo, you're a prisoner to the HOA Fee |
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mgg
Joined: 04 Jun 2007
Posts: 4
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| Posted: Wed Jun 13, 2007 6:01 am GMT Post subject: Re: Condo |
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| Heloc wrote: | | Forget about buying a condo, you're a prisoner to the HOA Fee |
What's so bad about HOA fees. Most condos I've been looking at (usually units in 2-family houses) have HOA fees of about $150 which covers water and master insurance. That is nothing, and a HOA consisting of two people isn't exactly difficult to deal with. Sure, I'd love to buy a single family hosue, or even a multi-family and rent half of it out, but that isn't going to happen on my salary near boston ever. |
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RE Reviews
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| Posted: Fri Feb 22, 2008 5:07 pm GMT Post subject: HOA'S |
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| The HOA "FEE" isn't the problem. It's the HOA's. They are Communist nightmares and should be avoided AT ALL COSTS. The CAI attorneys' goal is to control the country through restrictions. Research and learn the problems. Think it won't happen to you? Think again. They strip you of your Constitutional Rights, as they consider themselves 'private governments.' |
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