this post was submitted on 13 Aug 2023
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I might be putting an offer on a house to someone who is apparently desperate to sell for personal reasons. I'm going for another look and will get a building inspector to also take a look. The kitchen needs to be redone because apparently it was made for Shaq - for real the bench tops are so high - and the oven looks like it wouldn't be up to code (it's all old anyway).
The house has been on the market for a long time without much interest it appears as well.
I was once told that the first offer you make should be so low it even embarrasses you to offer it. I figure if the guy is keen to sell and "very flexible" may as well try it - especially given a few things need to be done to the house. It's livable now, but it needs a split system, a small part of it is unfinished (very minor and no big deal but why I am also getting a building inspector) and definitely needs a new kitchen so I figure I'll put those reasonings in for a lower offer too.
Any one ever done this? This is all new to me. It scares me spending so much money.
When we brought this place I had put in 3 offers on other places and got royaly dicked around. So I called the agent and went "My offer is 5k below asking range. Take it or leave it. Present it to your clients and if they agree you'll have the writing in offer 2 seconds after you call me. But Im not sending you a deposit to just talk to them". Turns out we were the only one, got it for 5k below the asking range (which even then was probably 10k too much). Worst case, they come back and say "Nah, how about X instead". But you never open negotiations high in the vendors favor. You miss 100% of the shots you dont take. Good luck!
Yep. I don't want to dick around either. If I like it and the BS comes through ok I'll put in an offer that can be without subjecting to finance, dude can go on his merry way (apparently divorce and ex is taking him for everything), while I still have to fix up the issues. It's going to be a ridiculously low offer though but he is happy to negotiate. And if not. I am not in any hurry either.
When you say ridiculously low, How low are we talking? Like if the range is 400-450k you're not going in at like 290k or something silly right?
No. It will be about 50k less without finance needed (and considering highlighted issues) I very much doubt they will take it but it might kick the ball rolling on a good deal.
That's not really good advice. If you insult the person they'll reject it. Being ruthless wins no friends. Especially in small towns. Definitely cost the kitchen and take that off, and the other repairs. But most likely the person has an amount in mind which has already considered those factors.
Just lowballing someone because you don't think anyone else is interested won't necessarily sway someone who has a figure in mind. Don't listen to real estate agents or anyone else with a financial interest in the sale other than the vendor. Apparently desperate to sell doesn't mean someone will take something insulting or would not line up with what they need the money so desperately for in the first place.
If you're wanting to make an offer, set out some conditions, like pending finance and pending building inspection. Go 10-15% under their asking price as a place to start a negotiition so the vendor knows you're serious. Lowballing often means tyre kicker. Source, I just sold my place and had a few fuckheads who wasted my time and tried to lowball me.
I am also not desperate to buy so I don't need to come to his table either. I have a price/ceiling I am willing to spend in mind. He's willing to negotiate, going through a messy divorce and wants to get rid of it. If he wants to reject it outright, fine. If he wants to negotiate, also fine. If he wants to accept it, even better.
Fair enough. Hope I didn't sound obstinate, all the best! If it works, great. If not hopefully you find something you don't have to work on so much.
Not at all. Thanks for replying. All these thoughts help and give me perspective too.