Realtors work for you not the other way around if he doesn't want to submit the offer find another one. He's getting 2.5% commission to literally submit offers don't feel bad for making your realtor do their job.
Agreed. My realtor tried this "that offer is low, you don't want to offend the seller" bullshit with me (as if that's a thing). If you know what you are willing to pay, offer that or slightly less so you can "negotiate" (because apparently people love wasting each other's time with that bullshit.
I held firm and told them to make the offer. Seller came to table immediately and we live in the house now.
Moral of the story: realtors are useless people who know jack shit about anything. Just make the offer.
I think offending the seller can be a "thing", depending on how low your lowball is. I was selling my condo in AB last time (or the time before?) the market crashed, so it was sitting for a while, and I received some very low-ball offers sight unseen. I assume they were from investors, since these people didn't even view the place.
I refused to even counteroffer to these. But, my agent wasn't happy with me, she wanted it sold asap.
Am I missing something? How did his comment prove the above comment right? The agent telling him to counter-offer is great advice, you can pick whatever price you want including full list price.
Depends what your goal is as the person making the offer. If you absolutely want that house, probably getting on the wrong side of the seller right off the bat isn't the best strategy. For the people making offers on my apartment, they didn't care - they were just looking to buy up cheap properties as investments, so there was no attachment. And I was in the fortunate position of having paid off the condo, so I wasn't at all pressed to play ball with potential buyers who annoyed me. I could wait for reasonable offers, which eventually appeared; but other sellers probably weren't in a position to do so.
You obviously have to take into account the seller. That being said if the house is on the market for over 30 days maybe the seller has unrealistic expectations. Just because they ask a ridiculous amount that does not entitle them to offers only 10% below asking price. If the house is only worth 500,000 and they are asking 750,000 than a 510,000 offer isn’t a low ball but a far number.
Realators don’t care they just want to sell the place and get their commission, 2.5% on a few thousand means nothing to them so they’ll bitch and moan about negotiating the price while there’s tangible benefit to you. Couple a of thousand is potential a few months of mtg payments.
Offending the seller is definitely a thing. Some sellers do get pissed when getting a price too low and it ruins opportunity to negotiate effectively. Not all sellers are like that but it’s a risk to be aware of. If the low price can be justified, then by all means.
Does it generally matter if the seller is offended? I'd say if they're offended, that's on them. This isn't the only property in the city. If another seller is willing to take a low offer, I don't really care if other sellers get offended.
All depends how much you want that specific house. I turned buyers away for low-balling me in the first week I was on the market, their agents should have advised them better.
It depends on how much you want the specific property and how many other options you have. Some buyers may have very specific criteria and won't have many options to chose from. If you're putting an offer on a property, it's usually the best choice/fit out of what's currently available and the intention is to actually buy it.
If you don't really care what you're buying you can always throw low-ball offers around the city and hope someone is desperate enough it take it. But for most people they don't have a vast amount of options that fit what they need - at least not in Toronto
They just won’t want to deal with you anymore. Not a big deal if you’re just throwing out low balls and hoping for some luck. It’s only a problem if you have your heart set on the house
Many times if the offer is “offensive” the buyer wouldn't be able or want to offer what the seller is willing to go for anyway. So nothing was lost by “offending” the seller
That's exactly the point. If you're putting an offer on a property I assume the intention is to buy it. So if you want the seller to actually accept the offer at the lowest price they're willing to take, it's better to not piss them off at the start.
Although some sellers are unreasonable, stubborn and want too much for their house (buyer's can be the same) - so they'll never actually sell it, a buyer's initial offer should be as low as possible while still being reasonable to give you the best chances of negotiating the best price and actually getting the offer accepted
Must be a realtor.
My goal is not to buy a property no matter what, my goal is to buy a property at the price it is worth to me. I do not give a flying fuck what the seller wants. I know what I want to pay and I will start my offer at a point that, after some haggling, puts me where I want to be.
If my desired price and their lowest price don’t overlap, I don’t care what they think. They can find someone who values the property higher than I do. I won’t be coming up beyond what I think it’s worth because of FOMO.
You can only do that with desperate sellers. Market is holding up. Quality and great locations are appreciating.
If your offer is all cash no conditions that may help a bit. But anything that looks like a deal is terrible quality.
I bought a low end cottage a few weeks ago. There are many people out there searching for a deal.
What do you value more a propertybto use live or a deal.
Unfortunately Ontario real estate is a rip off. If you are buying in the high end in the market you may get more wiggle room if the listing is stagnant. Spring market has just begun and we are approaching rate cute time.
My realtor before said that i have to max out my offer ( like 30k more on my last offer) for me to secure the property . Lol more money i offer the more her commission goes up.
My MIL was my first realtor. She did the "we cant upset the sellers with low offers"
My realtor after my separation was just like "sure, all they can do is say yes or no"
It's not like you will ever see the sellers again if they laugh at your lowball and reject your offer.
You: "Hi I'd like to put this offer in, can you please help me with that?"
Your current realtor: "No, that's embarrassing for me."
You: "No worries!"
You, to Realtor 2: "Hi I'd like to put this offer in, can you please help me with that?"
Realtor 2: "Sure, no problem, happy to help!"
Whatever you want to put as an offer is not a problem. Don’t be embarassed.
But bringing 2018 prices vs. 2024 is nuts. When I was looking at properties in 2015 prices were 500K. 2016 was 600K. 2017 was 650K and that’s when I bought. Now it’s worth above 750K. You can’t compare the past to present.
It's hard for me to tell how much I should pay attention to the 2018 price. I think I'm going to keep waiting and consider making an offer in another week or so when the property will hit 6 weeks on the market.
It's not though....homes where we looked in 2018 were around 700-900K and are now between 1.1 and 1.4. The market went insane between 2020 and 2022 and prices haven't plummeted despite the rate hikes. I'd be interested to know what OP wants to offer....
Dont be embarrassed.
I tell my clients put whatever you want.
You have to make offers to see how market plays for you.
I mean you will likely be rejected but who cares. You gotta test the water!
Don't worry about embarrassing your realtor; focus on what you can afford and what best meets your needs. Remember, they work for you, and their primary duty is to represent your interests. It's perfectly fine to make an offer that aligns with your financial comfort and goals. If your realtor isn't willing to support your offer, perhaps you need someone who better aligns with your needs.
I wouldn't recommend a specific number without seeing the property, but take a thorough look, assess its value to you, and don't hesitate to make an offer. The worst the seller can do is say no, but they might just say yes. Ultimately, it's more important that you are happy with your purchase than worrying about upsetting a seller or two.
Given that your username includes UX, consider this: you are the primary user/stakeholder here. In a volatile market, it's easy for buyers to overlook their own needs, but remember, this isn't just a transaction for you - it's a long-term financial commitment and your future home. Your comfort with this decision is paramount.
"I also don't want to waste my realtor's time with an unreasonable request. We've seen 6 houses in person and I haven't made any offers."
Let's deal with this first. Life is not a real estate tv show. It is not uncommon for buyers to see many homes over a period of time, if situation permits, until they find the right home at the right price. Do not feel about about seeing even 20 homes with no offer.
That said. Lowball offers aren't embarassing nor offensive no matter what anyone says. Writing a proper offer with reasonable conditions etc and a lowish price is better than no offer. After 30 days on market an offer on paper is welcomed. By the way this offer gives the listing agent a reason to call everyone who has shown the property and let them know there is an offer. This works to their benefit as it may get another agent to bring an offer - and yes this "trigger" does not work in your favour. That's all part of the process.
Previous purchase price means nothing. Look at the comps. See if the price you are willing to go to is even close to what others in the area have recently sold for and if so go ahead. Don't worry about your realtors feelings. They won't mind if you get a bargain, trust me, they just want you to buy something.
Of course, but homeowners have an emotional stake. Insult them with a ridiculous offer, you may not get another chance. Make a reasonable discount offer and you open up a dialogue that can result in a sale.
It’s a recognition that we are human. It doesn’t matter what business we’re talking about, we really like to do business with people that show us respect. If that business involves something we likely have an emotional attachment to, then that goes double. Starting a negotiation with what would be considered a disrespectful offer? And justifying it with irrelevant facts? If that’s what OP wants, he’s free to do so. When that’s sorted, I suggest he start looking at properties within his price range.
What is the market value? Have there been any price reductions? Has it been listed previously in recent months? How does its ask price stack up against its assessed value? How do comparable sales values compare to assessed values? How do comparable list prices compare to sold values?
These are great questions for your realtor.
Time only matters for someone who needs to sell. If they don't, the listing will sit and inevitably someone will come along and pay close to what they want. OP should focus more on comparables in the area for today's market...not the previous sale price from 6 years ago when the market shifted significantly during that time period.
You can offer whatever you feel like it. Are you going to get it at an insane low offer, most probably not.
Why is it relevant how much it was worth in 2018? If you really want the house, then I would get your agent to do some research, get the right value and try at a reasonable offer. Otherwise look elsewhere where you can actually afford.
Other (much nicer) homes in the area on larger lots that were purchased for closer to $900,000 in 2018 have sold for around $1,100,000 (a 22% increase) with similar renos. If the neighbourhood has appreciated around 20-25% in that time frame, then an offer that shows the same increase on the home I'm interested in seems logical. But a 22% increase from $600,000 is only $732,000, which feels low.
Value of the house is what people pay for it. Seems like no one is paying 1M for it. Comparables are irrelevant on low-volume markets. Opportunity cost of 1M is 5k/month, being thrown to trash.
OP,
Let me do show you some math.
You will pay 2.5% of the purchase price to your realtor. For a 1M home,.this equates to $25k to your agent.
Now, how many hours do you think has the agent spent on you. 6 properties ..so far ..right ? Even if you give it a ridiculous 10 hours per property, that just comes out to 6 properties x 10 hours per property = 60 hours.
So, remind yourself - are you prepared to pay 25k for 60 hours of work. That's $400 per hour. Is your realtor worth $400 per hour ??
Anyway, you can do the math and figure out whether 6 properties is too much or 60. Would $40 per hour be more reasonable ? I don't know...it depends knt he realtor and what they are doing for you and how you value them
In any case, ask your realtor to fuck off if they make you feel bad. Ask them to cc you on all communication with the listing agent , nothing on the phone , only emails. Else tell them to take a hike and while you are at it, ask for cash back too. Assume realtors lie. Professional liars
"You don't want to offend the seller..." What a line of hooey.
It's just bidness. It's just an offer. Let's make a deal! If my offer doesn't work for you, you can make a counter, turn it down, take it, walk away, whatever.
But it's nothing personal about anybody.
I would try to calculate a rough estimate of the needed work on the house (roof, furnace etc)then deduct that from the list price. From there you can reduce another 10% and see if the sellers will counter offer.
Don't feel bad if they reject the offer. It's better to pay a bit more for the right house than to underpay for the wrong house.
Don’t just focus on price - what are the terms
In the offer ? Do they match the needs of the seller ?
I’m a Realtor and I did receive a low ball offer on my clients property - I had a frank discussion with them. My clients were open to looking at a potential offer
Told the other Realtor to send it as it starts a conversation- I the end the terms of the offer were as important as the price
My client accepted an offer after a few back and forth’s - both parties were satisfied
Did they both think they had a score - not really but they both felt the deal was acceptable and they moved on from there
When we bought our house, our realtor did an extensive evaluation and helped us choose a low but not insultingly low offer. We ended up starting about 30k under asking and ended up meeting in the middle. She told us that if you go too low you risk the sellers walking away from negotiations altogether.
I agree. That was my personal situation in a different market with a different price point in a very different market. You should do a proper analysis for the best outcome and not just pick a number. If it's a reasonable lowball offer, no need to worry about insulting anyone.
What’s reasonable is a little under what any comps have sold for. Ask your agent for that info. They should be able to pull up everything over the last year that would compare and see how they stack up… if the cheapest sold for 850k and was pretty equivalent, sure… offer 800k if you want and they should have no issue with that. However if all comps sold over a million and were all a bit worse? Any offer as low as that first choice might be a waste of time…
But who really cares? Waste some time if you like. You never know their motivation for selling. You also don’t know if they have already had four offers just under a mil that were not even responded to, so their agent will let you know that and you can move on/redo another if you choose.
However, if you think 30 days is a lot, and that it should be selling for what they bought it for… yes, that would be a waste of everyone’s time.
Put in an offer at 875k and see what the counter is.
I used to be a licensed agent in NY state and owned an interior renovation company for a few years.
DO IT! I just did the same thing on a house and got it for significantly below market. You don't know the circumstances or motivations of the seller. Deals are falling through on financing and sale of other property conditions.
Don't worry about a "lowball offer" embarassing your agent. If I was embarrassed by offers, I wouldn't be in the business long.
But find out where the appropriate price is based on comparable solds. Then if you want to go lower decide how much and offer. If it is a home you really like try not to undercut by too much or the seller will hold it against you in further negotiations. But if you aren't absolutely in love with it you can take a more aggressive approach to negotiations.
same thing happened to me, i tried to offer 30% above asking (it was a low asking price to incite bidding war anyway, not any record breaking price). my agent said offer is too insulting to even submit, try at least 40% above.
in the end, the house only sold for 15% above asking and safe to say, i fired that realtor
It’s relevant because you know how much they’ve made on the investment which leads you to an understanding of where your offer lands in between what they paid, and what they want to make, which allows you to judge the likelihood of them accepting the offer.
Offer 900, but just expect them to say no, and if they do then move on. Sellers generally won’t consider offers less than 10% of their ask unless they are in dire straits or it’s been sitting for 4+ months
Wait until they start to move on their price, and get closer to what you think it’s worth. We’ve run into many sellers who think that their house is worth a lot more than it actually is, and they’re usually very stubborn, as per their realtors.
Possibly but you risk losing out entirely by waiting that long. I was making 8% lowballs on my offers and going from there. Got my house for 7% under asking
Hard to say what price is reasonable. Their asking price may be reasonable. Would need to see the house and comparables. Tell your realtor you are interested and ask them what price is reasonable and to send you RECENT ish comparable sales so you can compare. Study those then have an educated convo with your realtor and get to a reasonable number. Realtor can also call listing agent to feel them out and see if any flexibility.
We had a realtor say this to us once. It must be in the handbook of how to get your clients to overpay so they increase chances of a quick commission check.
I recently purchased a house and my biggest take away was that you don’t need a realtor to buy a house in Toronto. The most important people are your lawyer and mortgage broker. If you’re really nervous find a good inspector and put an inspection as a contingency. I know this will come as controversial advice as many in this sub are realtors, but ultimately it’s not that hard to manage the process yourself. You can contact the listing agent and ask their client would consider an offer at X amount. If you go in without an agent, you have a huge advantage as you can save the seller 2.5% (typically) by not needing to pay buyers agent fees.
All that being said, if you would prefer to use an agent, it’s important to remember that your agent works for you (and you’re likely paying them very well for the amount of work involved). Additionally, it’s in your agents best interest to have you buy the most expensive house possible as that means they get paid more. If they’re reluctant to out a lower offer in on a house, drop them and find a new one.
Since data is widely available now, Housesigma, for example, I would suggest an approach of reasonable offer vs lowball offer. Detached has gone up quite a bit since 2018, not a realtor but did quite a few investor deals. 600K going to 1m is not unheard of. I would go to housesigma and look at what were comparables were selling for in the area. What is list price vs sold price. Then went to your realtor with you reco and then submit an offer. I don't know what areas you are looking at. In the east end, a lot of sales happening in the 1m to 1.1m area for detached.
First of all, do whatever you want. Don’t worry about embarrassing your realtor, they’re literally just a messenger.
Second, don’t try to use what the seller previously bought for as logic to justify your offer. Market matters (unfortunately) and most people won’t respond well to “you’re already making $X don’t be greedy!” Stick to your other valid points, come up with a $ value it’ll take to replace the critical items that need replacing (roof, furnace) and use that as your reasoning for submitting a lower offer.
Bought a duplex in Montreal two years ago just before the rates went sky high.
It was listed for $600K, wife and I offered $500K, he came all the way down to 515K… we now own the property 🕺🏼.
Can’t hurt to try, the worst they can say is “No thank you”
Your realtor is just a clerical worker. He knows as much as how much the other party is willing to accept. That's it. There's no magic expertise to his shit.
A average realtor doesn't know shit. A phenomenal realtor is one that helps you Identify investments and gathers enough data for you to make good bets. Those are very fucking rare.
So no so thing as low balling. Just about how low you will go. Offering 600k is fucking stupid.
Assuming property is worth 1million. Go at 885
Don’t feel bad for your Realtor. That’s their job. If they put up a fuss, get a new one.
What I would say from personal experience is to wait until the seller starts to decrease their price and gets within a stone’s throw of what you’re willing to pay. Or, make a lowball offer, but just plan on it being rejected.
A $600K property in 2018 should be about $900K in 2024. It sounds like everything is also 6 years older, so technically, it might even be worth a little less than that. By listing at $1.1M, the sellers are saying that that they were willing to waste time on being unreasonable with their price.
You dont need to submit a formal offer. Jusr ask your realtor to test the water for you. Any good realtor would be able to gauge the interest and price range of the seller.
House prices are up c55 percent since 2018. You have identified 100k in repairs needed. This suggests an offer of 850k seems apprpriate. You do not need a buyer agent, saves YOU 25k as YOU are the sole source of all the money. This means seller is getting, in effect, 875k.
Don’t worry about embarrassing your realtor. They whould be happy you’re prepared to make an offer. Be reasonable with your lowball offer. Explain how you came to the number. I’ve received a ridiculous lowball offer. Just said no and moved on. On the other hand I’ve received another reasonable lowball that backed up their offer with comparable and price per foot. We came to an agreement for that young first time home buyer.
Your realtor is to represent you and get the best deal on your behalf. They should be the ones advising you what to consider.
If you’re worried about how your realtor would be perceived then they must not be doing a good job.
Your Realtor should be able to give you the fair market value, comparing with at least 3 properties in the neighborhood that sold recently.
You are heading into the stronger season now, May/June so any seasonal downward adjustment seems unlikely (regardless, check if there's a downward trend due to mortgages being so expensive now). A low ball offer would be maybe 10% less what they're asking or at least 5% under what one would perceive to fair market value. If your offer is deviating by 20% I guarantee you you're wasting everyone's time, if the seller isn't extremely "motivated".
Feelings don't matter, but if you are asking for stupid things like doing 750k offer, the agent may adjust how they work with you and you'll lose the opportunity to negotiate with this one seller.
who cares about your realtors feelings? is it worth 10s of thousands of dollars to you?
I've lowballed hard on every property I've ever bought and never failed to get a counter and land closer to my number than the list price. it's called putting a stake in the ground.
don't fall for realtor bullshit
Find another agent to represent you. Remember though, Seller’s agent is duty bound to present the offer to the seller, but the seller doesn’t have to respond to your offer. Stick your toe in the water but be prepared for all potential outcomes. Also, rule of thumb, the lower the lowball offer is , the cleaner it should be. If you throw financing, inspections etc in, the seller may “be offended”. Good luck.
What's reasonable is the current value of the property or up to 15% lower. Ignore the 2018 price, the market changes in 6 years, houses change, and areas fluctuate in popularity. Go by sold stats from this year and preferably this month.
Do not worry whatsoever about your realtor they work for you. That being said, it is a waste of everyone's time yours included if you put in an offer that is not serious. Like lets say you offer 500K etc.
No one knows what is a reasonable price to estimate without a link to the house (or at least details on how big, what part of town, beds, baths etc.). So that being said no one can really say. If the house has been sitting for 30 days you can probably go under ask. Who knows by how much though. The seller is of course not obligated to sell for less than they think it is worth.
The only problem you might run into is the fact that since the last sale date prices have roughly doubled (depending on the neighborhood as well, of course - Toronto being completely F&\*KED anyway). Also, detached vs semi vs town vs condo is a large factor. I'm guessing that "low" in this case would be around $900K to $1,000K. Not sure how low you wanted to go but likely the seller may not like any lower than that range and depending on their situation may just hold. Of course, if they are motivated it might work out differently. Good luck in any case.
Well you could consider basic inflation into the price estimate and make the calculation of the price to include inflation and property taxes every year for an equivalent price then decide if to pay lower or higher than what they paid
Don’t worry about what your realtor thinks. They are banking 2.5% for being a paper administrator. Buyers do most of the leg work. I recently bought a place that was originally listed in 2022 for 850. We paid 650 for it which was another 50k off the listing, I got this number by looking at what prices were in 2019/2020 in the area and giving a bit of flex to them. Use house sigma and look at 2019/2020 comps and figure out something in there.
I reset the last 4 years on the seller and I’m happy with the purchase. The house I bought will be cheaper in a year without a doubt but it was time for my family to buy and I don’t look at housing as an investment.
Make the lowball!
I just purchased a place with low ball offers only in gta. You will make more offers and most won’t be accepted but eventually something will stick. I always came up with my valuation and made that offer and stuck to it no matter what my realtor says. I was told ‘not a chance’ but a seller eventually accepted. I was $200k below comparable for last month.
Realtor here - even when a client suggests an offer that seems lowball, it would be extremely disrespectful to make them feel like it would embarrass me. Why would it embarrass me? Why would I care if the sellers or listing agent get offended? It’s real estate not anyone’s feelings. I can make my thoughts known that I don’t think it would be remotely be considered but if I get the sense that they still want to go ahead with it, this is my job and we do it.
Now as for how it goes, either:
1. It completely gets ridiculed by the listing agent who tries to make me feel embarrassed but it’s just business, this isn’t embarrassing. My clients may be a bit delusional but that’s on them? I explain what happened and usually it’s a lesson for them to learn.
1.2 It gets completely ridiculed but I stand firm and some time later when they still haven’t sold it they come crawling back to see if we’re still interested and now the games begin lol.
2. Maybe the low ball offer is too low but not exactly so far off from the lowest amount the sellers are willing to accept, so we play ball and negotiate until we meet somewhere in the middle.
3. It works! We should never assume what the seller’s circumstances are. Some people are in a rush to sell due to circumstances we know nothing about. This just happened with a property my clients offered on a couple months ago. When they told me what they wanted to offer in my head I was like “…. are you serious” but I explained what I thought the lowest the sellers would be willing to accept is with kindness and then gave them a “but hey let’s try it!” (It was offers anytime and had been sitting) and it WORKED. Seller was old and sick, kids/poa wanted it sold before seller dies. My clients are laughing now.
If there’s a lesson for you as the buyer to learn then you gotta learn it. I’ve written plenty of offers knowing it would be a lesson for the buyers and it was. Home buyer denial is a real thing, especially for first timers. But respect is always a must and you literally never know what could happen.
Anyway don’t feel bad for your realtor, it may be tedious to write offers but it’s really not that much work in the long run for what they will make from your eventual purchase, whether it’s now or later.
Good luck!
Edit: typo
It seems that you’re trying to find negative spots from the place, ie. “small cosmetic improvements”, “cheap materials”, “nothing major was updated”, “property sitting for 30 days” to justify your poor low ball offer. If it’s that low why do you want to offer? Especially when you listed so many cons?
Low ball! I did this for my own house and a friends and we paid just a bit over my asking price It worked out for us. I’m a realtor why would I want my fam/friends overpaying in this shitty economy. End of the day the contract clauses are the same the final number is up to u.
Thats the same statement that has been made since 2010 and look at real estate now. It will never crash because there are people waiting for any slight dip to buy
Hate to break it to you but the crash already happened (15-20% depending on your area). We're in a holding pattern until rates start to drop and then prices will SLOWLY start rising again.
Look up the cost of a rental in your area for the answer why.
Also fuck realtors. Easiest fucking job on the planet to lake a buck. Just lots of competition now. So easy.its stupid. I don't do it because it's sleazy as fuck. If I did living in kelowna I would have made so much fuck... all good. I do know realtors that are good people
But ya.... sleazy shit.
I wouldn’t worry about the realtor because that’s his job and doesn’t take long to type up an offer since probably all similar wordings just fill in the amounts offered and conditions.
Keep in mind even it’s sitting on the market 30 days already doesn’t mean he’s desperate. I sold my house 2 years ago and was willing to pull it off the market unless I got the proper bids in.
I’d try offering 1 million even just to see what he returns at. If he returns with $1,090,000 he’ll be hard to deal with haha. But he realistically should come down $40,000 or $50,000.
Good luck and ignore what he paid for it. He’s entitled to get what market value is.
Dudes. Low balling was a thing of the past..... wake the fuck up. It's getting fucked. If your successful with a high paying job and a wife that's the same. Pull the trigger and get in. If not don't. Unless your tight with your family.
It isn't going to crash more than 20 percent. And at 1.2 that's not alot for your majority. Most make less than 50k a year..
Keep that in mind.
Realtors work for you not the other way around if he doesn't want to submit the offer find another one. He's getting 2.5% commission to literally submit offers don't feel bad for making your realtor do their job.
Agreed. My realtor tried this "that offer is low, you don't want to offend the seller" bullshit with me (as if that's a thing). If you know what you are willing to pay, offer that or slightly less so you can "negotiate" (because apparently people love wasting each other's time with that bullshit. I held firm and told them to make the offer. Seller came to table immediately and we live in the house now. Moral of the story: realtors are useless people who know jack shit about anything. Just make the offer.
I think offending the seller can be a "thing", depending on how low your lowball is. I was selling my condo in AB last time (or the time before?) the market crashed, so it was sitting for a while, and I received some very low-ball offers sight unseen. I assume they were from investors, since these people didn't even view the place. I refused to even counteroffer to these. But, my agent wasn't happy with me, she wanted it sold asap.
You did just prove the above comment right thought. Agents are useless. Selling the house is a business, leave feelings at the door
Am I missing something? How did his comment prove the above comment right? The agent telling him to counter-offer is great advice, you can pick whatever price you want including full list price.
Depends what your goal is as the person making the offer. If you absolutely want that house, probably getting on the wrong side of the seller right off the bat isn't the best strategy. For the people making offers on my apartment, they didn't care - they were just looking to buy up cheap properties as investments, so there was no attachment. And I was in the fortunate position of having paid off the condo, so I wasn't at all pressed to play ball with potential buyers who annoyed me. I could wait for reasonable offers, which eventually appeared; but other sellers probably weren't in a position to do so.
You obviously have to take into account the seller. That being said if the house is on the market for over 30 days maybe the seller has unrealistic expectations. Just because they ask a ridiculous amount that does not entitle them to offers only 10% below asking price. If the house is only worth 500,000 and they are asking 750,000 than a 510,000 offer isn’t a low ball but a far number.
Realators don’t care they just want to sell the place and get their commission, 2.5% on a few thousand means nothing to them so they’ll bitch and moan about negotiating the price while there’s tangible benefit to you. Couple a of thousand is potential a few months of mtg payments.
Offending the seller is definitely a thing. Some sellers do get pissed when getting a price too low and it ruins opportunity to negotiate effectively. Not all sellers are like that but it’s a risk to be aware of. If the low price can be justified, then by all means.
Does it generally matter if the seller is offended? I'd say if they're offended, that's on them. This isn't the only property in the city. If another seller is willing to take a low offer, I don't really care if other sellers get offended.
All depends how much you want that specific house. I turned buyers away for low-balling me in the first week I was on the market, their agents should have advised them better.
It depends on how much you want the specific property and how many other options you have. Some buyers may have very specific criteria and won't have many options to chose from. If you're putting an offer on a property, it's usually the best choice/fit out of what's currently available and the intention is to actually buy it. If you don't really care what you're buying you can always throw low-ball offers around the city and hope someone is desperate enough it take it. But for most people they don't have a vast amount of options that fit what they need - at least not in Toronto
They just won’t want to deal with you anymore. Not a big deal if you’re just throwing out low balls and hoping for some luck. It’s only a problem if you have your heart set on the house
Same, that's the right damn attitude for this overpriced market.
Many times if the offer is “offensive” the buyer wouldn't be able or want to offer what the seller is willing to go for anyway. So nothing was lost by “offending” the seller
Who cares? If the seller is offended by your initial offer you’ll never find common ground.
That's exactly the point. If you're putting an offer on a property I assume the intention is to buy it. So if you want the seller to actually accept the offer at the lowest price they're willing to take, it's better to not piss them off at the start. Although some sellers are unreasonable, stubborn and want too much for their house (buyer's can be the same) - so they'll never actually sell it, a buyer's initial offer should be as low as possible while still being reasonable to give you the best chances of negotiating the best price and actually getting the offer accepted
Must be a realtor. My goal is not to buy a property no matter what, my goal is to buy a property at the price it is worth to me. I do not give a flying fuck what the seller wants. I know what I want to pay and I will start my offer at a point that, after some haggling, puts me where I want to be. If my desired price and their lowest price don’t overlap, I don’t care what they think. They can find someone who values the property higher than I do. I won’t be coming up beyond what I think it’s worth because of FOMO.
You can only do that with desperate sellers. Market is holding up. Quality and great locations are appreciating. If your offer is all cash no conditions that may help a bit. But anything that looks like a deal is terrible quality. I bought a low end cottage a few weeks ago. There are many people out there searching for a deal. What do you value more a propertybto use live or a deal. Unfortunately Ontario real estate is a rip off. If you are buying in the high end in the market you may get more wiggle room if the listing is stagnant. Spring market has just begun and we are approaching rate cute time.
But but but … she said she can sell my property for the highest top dollar! She’s pretty tho
If OP’s realtor is getting 2.5% of the sale price, the that realtor does not really have an incentive to get the sale price as low as possible
And now you know why you should not hire an agent as a buyer. Its super easy to search for properties now.
The wish to speed up the selling/buying process is stronger than trying to maximize the deal for either end.
My realtor before said that i have to max out my offer ( like 30k more on my last offer) for me to secure the property . Lol more money i offer the more her commission goes up.
Great advice
Yes
Do you ever go into a car showroom and ask the sales guy (who also works mostly on commission) to put an offer for $2?
My realtor did lowball offers for me, as he said “you never know unless you try” If your realtor says no, maybe they aren’t the one for you
My MIL was my first realtor. She did the "we cant upset the sellers with low offers" My realtor after my separation was just like "sure, all they can do is say yes or no" It's not like you will ever see the sellers again if they laugh at your lowball and reject your offer.
I feel sorry for you for having to deal with a family realtor. The process is already stressing enough withou the family drama.
You: "Hi I'd like to put this offer in, can you please help me with that?" Your current realtor: "No, that's embarrassing for me." You: "No worries!" You, to Realtor 2: "Hi I'd like to put this offer in, can you please help me with that?" Realtor 2: "Sure, no problem, happy to help!"
Whatever you want to put as an offer is not a problem. Don’t be embarassed. But bringing 2018 prices vs. 2024 is nuts. When I was looking at properties in 2015 prices were 500K. 2016 was 600K. 2017 was 650K and that’s when I bought. Now it’s worth above 750K. You can’t compare the past to present.
It's hard for me to tell how much I should pay attention to the 2018 price. I think I'm going to keep waiting and consider making an offer in another week or so when the property will hit 6 weeks on the market.
That’s still not as bad as $600 to $1.1M over same time though, that’s an insane ask even in Toronto’s market
Thats the cost of a detatched.
It's genuinely not. 2018 is just before the huge spike happened
It's not though....homes where we looked in 2018 were around 700-900K and are now between 1.1 and 1.4. The market went insane between 2020 and 2022 and prices haven't plummeted despite the rate hikes. I'd be interested to know what OP wants to offer....
Dont be embarrassed. I tell my clients put whatever you want. You have to make offers to see how market plays for you. I mean you will likely be rejected but who cares. You gotta test the water!
An offer you'd feel embarrassed to make is a good offer.
Don't worry about embarrassing your realtor; focus on what you can afford and what best meets your needs. Remember, they work for you, and their primary duty is to represent your interests. It's perfectly fine to make an offer that aligns with your financial comfort and goals. If your realtor isn't willing to support your offer, perhaps you need someone who better aligns with your needs. I wouldn't recommend a specific number without seeing the property, but take a thorough look, assess its value to you, and don't hesitate to make an offer. The worst the seller can do is say no, but they might just say yes. Ultimately, it's more important that you are happy with your purchase than worrying about upsetting a seller or two. Given that your username includes UX, consider this: you are the primary user/stakeholder here. In a volatile market, it's easy for buyers to overlook their own needs, but remember, this isn't just a transaction for you - it's a long-term financial commitment and your future home. Your comfort with this decision is paramount.
MustardClementine in with characteristically sage advice!
Thank you
"I also don't want to waste my realtor's time with an unreasonable request. We've seen 6 houses in person and I haven't made any offers." Let's deal with this first. Life is not a real estate tv show. It is not uncommon for buyers to see many homes over a period of time, if situation permits, until they find the right home at the right price. Do not feel about about seeing even 20 homes with no offer. That said. Lowball offers aren't embarassing nor offensive no matter what anyone says. Writing a proper offer with reasonable conditions etc and a lowish price is better than no offer. After 30 days on market an offer on paper is welcomed. By the way this offer gives the listing agent a reason to call everyone who has shown the property and let them know there is an offer. This works to their benefit as it may get another agent to bring an offer - and yes this "trigger" does not work in your favour. That's all part of the process. Previous purchase price means nothing. Look at the comps. See if the price you are willing to go to is even close to what others in the area have recently sold for and if so go ahead. Don't worry about your realtors feelings. They won't mind if you get a bargain, trust me, they just want you to buy something.
Thank you
A 6 year old purchase price and a lack of improvement since then is irrelevant. You need to understand the market value and go from there.
It's worth what the market will bear right?
Of course, but homeowners have an emotional stake. Insult them with a ridiculous offer, you may not get another chance. Make a reasonable discount offer and you open up a dialogue that can result in a sale.
I'm being facetious, but is this why we got away from market fundamentals? For fear of hurting the feelings of sellers?
It’s a recognition that we are human. It doesn’t matter what business we’re talking about, we really like to do business with people that show us respect. If that business involves something we likely have an emotional attachment to, then that goes double. Starting a negotiation with what would be considered a disrespectful offer? And justifying it with irrelevant facts? If that’s what OP wants, he’s free to do so. When that’s sorted, I suggest he start looking at properties within his price range.
If it were to sit for two months on the market, what would you consider to be a "reasonable discount offer"?
What is the market value? Have there been any price reductions? Has it been listed previously in recent months? How does its ask price stack up against its assessed value? How do comparable sales values compare to assessed values? How do comparable list prices compare to sold values? These are great questions for your realtor.
Realtor spotted. Also, it’s been on the market for 30 days. The market has spoken.
30 days is not that long. I sold my house in 5 days but was prepared to wait up to 60
30 days is an eternity when you constantly have realtors and people on the taking end claiming that the market is still going strong.
30 days is not long in this market, but certainly not too early for a market based discount offer.
Time only matters for someone who needs to sell. If they don't, the listing will sit and inevitably someone will come along and pay close to what they want. OP should focus more on comparables in the area for today's market...not the previous sale price from 6 years ago when the market shifted significantly during that time period.
You can offer whatever you feel like it. Are you going to get it at an insane low offer, most probably not. Why is it relevant how much it was worth in 2018? If you really want the house, then I would get your agent to do some research, get the right value and try at a reasonable offer. Otherwise look elsewhere where you can actually afford.
Other (much nicer) homes in the area on larger lots that were purchased for closer to $900,000 in 2018 have sold for around $1,100,000 (a 22% increase) with similar renos. If the neighbourhood has appreciated around 20-25% in that time frame, then an offer that shows the same increase on the home I'm interested in seems logical. But a 22% increase from $600,000 is only $732,000, which feels low.
Value of the house is what people pay for it. Seems like no one is paying 1M for it. Comparables are irrelevant on low-volume markets. Opportunity cost of 1M is 5k/month, being thrown to trash.
Comps definitely matter in Toronto.
30 days is nothing. 45+ is when the buyer starts to gain control
OP, Let me do show you some math. You will pay 2.5% of the purchase price to your realtor. For a 1M home,.this equates to $25k to your agent. Now, how many hours do you think has the agent spent on you. 6 properties ..so far ..right ? Even if you give it a ridiculous 10 hours per property, that just comes out to 6 properties x 10 hours per property = 60 hours. So, remind yourself - are you prepared to pay 25k for 60 hours of work. That's $400 per hour. Is your realtor worth $400 per hour ?? Anyway, you can do the math and figure out whether 6 properties is too much or 60. Would $40 per hour be more reasonable ? I don't know...it depends knt he realtor and what they are doing for you and how you value them In any case, ask your realtor to fuck off if they make you feel bad. Ask them to cc you on all communication with the listing agent , nothing on the phone , only emails. Else tell them to take a hike and while you are at it, ask for cash back too. Assume realtors lie. Professional liars
Thank you
"You don't want to offend the seller..." What a line of hooey. It's just bidness. It's just an offer. Let's make a deal! If my offer doesn't work for you, you can make a counter, turn it down, take it, walk away, whatever. But it's nothing personal about anybody.
Thanks
I would try to calculate a rough estimate of the needed work on the house (roof, furnace etc)then deduct that from the list price. From there you can reduce another 10% and see if the sellers will counter offer. Don't feel bad if they reject the offer. It's better to pay a bit more for the right house than to underpay for the wrong house.
Thank you. That sounds like a good strategy
Don’t just focus on price - what are the terms In the offer ? Do they match the needs of the seller ? I’m a Realtor and I did receive a low ball offer on my clients property - I had a frank discussion with them. My clients were open to looking at a potential offer Told the other Realtor to send it as it starts a conversation- I the end the terms of the offer were as important as the price My client accepted an offer after a few back and forth’s - both parties were satisfied Did they both think they had a score - not really but they both felt the deal was acceptable and they moved on from there
As the saying goes, a good deal is when both parties are dissatisfied.
Yup
I definitely want an inspection, but I'm flexible on everything else. Thanks for your advice
Screw the realtor man. You gotta look out for your own interests in such situations and ignore other parties.
When we bought our house, our realtor did an extensive evaluation and helped us choose a low but not insultingly low offer. We ended up starting about 30k under asking and ended up meeting in the middle. She told us that if you go too low you risk the sellers walking away from negotiations altogether.
Which is true, lowballs can sour negotiations. But thats different from not making the offer to avoid the realtor embarassment
Absolutely, just wanted to throw in a different perspective for OP.
I think that after 30 days on the market, just $30k under asking is too generous, in my case IMO.
I agree. That was my personal situation in a different market with a different price point in a very different market. You should do a proper analysis for the best outcome and not just pick a number. If it's a reasonable lowball offer, no need to worry about insulting anyone.
What’s reasonable is a little under what any comps have sold for. Ask your agent for that info. They should be able to pull up everything over the last year that would compare and see how they stack up… if the cheapest sold for 850k and was pretty equivalent, sure… offer 800k if you want and they should have no issue with that. However if all comps sold over a million and were all a bit worse? Any offer as low as that first choice might be a waste of time… But who really cares? Waste some time if you like. You never know their motivation for selling. You also don’t know if they have already had four offers just under a mil that were not even responded to, so their agent will let you know that and you can move on/redo another if you choose. However, if you think 30 days is a lot, and that it should be selling for what they bought it for… yes, that would be a waste of everyone’s time.
Thank you
Put in an offer at 875k and see what the counter is. I used to be a licensed agent in NY state and owned an interior renovation company for a few years.
Thanks
DO IT! I just did the same thing on a house and got it for significantly below market. You don't know the circumstances or motivations of the seller. Deals are falling through on financing and sale of other property conditions.
Don't worry about a "lowball offer" embarassing your agent. If I was embarrassed by offers, I wouldn't be in the business long. But find out where the appropriate price is based on comparable solds. Then if you want to go lower decide how much and offer. If it is a home you really like try not to undercut by too much or the seller will hold it against you in further negotiations. But if you aren't absolutely in love with it you can take a more aggressive approach to negotiations.
30 days is nothing but still long enough to submit a lowball. 45+ is when the buyer really starts to have control.
same thing happened to me, i tried to offer 30% above asking (it was a low asking price to incite bidding war anyway, not any record breaking price). my agent said offer is too insulting to even submit, try at least 40% above. in the end, the house only sold for 15% above asking and safe to say, i fired that realtor
If they bought it for 1.2 in 2022, and now are listing it at 1.1, would you jump on it?
I would not.
By the same exact token, what they paid 6 years ago is completely irrelevant.
Thats why its called a lowball
And price of what they paid before Is still irrelevant.
No its not
It’s relevant because you know how much they’ve made on the investment which leads you to an understanding of where your offer lands in between what they paid, and what they want to make, which allows you to judge the likelihood of them accepting the offer.
Why don’t you show us the listing and look at comparables.
Offer 900, but just expect them to say no, and if they do then move on. Sellers generally won’t consider offers less than 10% of their ask unless they are in dire straits or it’s been sitting for 4+ months
If it does sit for 4+ months, do you think I could offer less than 10% under asking?
Wait until they start to move on their price, and get closer to what you think it’s worth. We’ve run into many sellers who think that their house is worth a lot more than it actually is, and they’re usually very stubborn, as per their realtors.
Possibly but you risk losing out entirely by waiting that long. I was making 8% lowballs on my offers and going from there. Got my house for 7% under asking
Dude it’s your money. Who cares about your realtors feelings. Don’t sweat it, worst answer is no
A ton of these properties get terminated
Hard to say what price is reasonable. Their asking price may be reasonable. Would need to see the house and comparables. Tell your realtor you are interested and ask them what price is reasonable and to send you RECENT ish comparable sales so you can compare. Study those then have an educated convo with your realtor and get to a reasonable number. Realtor can also call listing agent to feel them out and see if any flexibility.
We had a realtor say this to us once. It must be in the handbook of how to get your clients to overpay so they increase chances of a quick commission check.
DM I’ll write up your offer. F your realtor assuming your not on a BRA.
I recently purchased a house and my biggest take away was that you don’t need a realtor to buy a house in Toronto. The most important people are your lawyer and mortgage broker. If you’re really nervous find a good inspector and put an inspection as a contingency. I know this will come as controversial advice as many in this sub are realtors, but ultimately it’s not that hard to manage the process yourself. You can contact the listing agent and ask their client would consider an offer at X amount. If you go in without an agent, you have a huge advantage as you can save the seller 2.5% (typically) by not needing to pay buyers agent fees. All that being said, if you would prefer to use an agent, it’s important to remember that your agent works for you (and you’re likely paying them very well for the amount of work involved). Additionally, it’s in your agents best interest to have you buy the most expensive house possible as that means they get paid more. If they’re reluctant to out a lower offer in on a house, drop them and find a new one.
Since data is widely available now, Housesigma, for example, I would suggest an approach of reasonable offer vs lowball offer. Detached has gone up quite a bit since 2018, not a realtor but did quite a few investor deals. 600K going to 1m is not unheard of. I would go to housesigma and look at what were comparables were selling for in the area. What is list price vs sold price. Then went to your realtor with you reco and then submit an offer. I don't know what areas you are looking at. In the east end, a lot of sales happening in the 1m to 1.1m area for detached.
First of all, do whatever you want. Don’t worry about embarrassing your realtor, they’re literally just a messenger. Second, don’t try to use what the seller previously bought for as logic to justify your offer. Market matters (unfortunately) and most people won’t respond well to “you’re already making $X don’t be greedy!” Stick to your other valid points, come up with a $ value it’ll take to replace the critical items that need replacing (roof, furnace) and use that as your reasoning for submitting a lower offer.
Bought a duplex in Montreal two years ago just before the rates went sky high. It was listed for $600K, wife and I offered $500K, he came all the way down to 515K… we now own the property 🕺🏼. Can’t hurt to try, the worst they can say is “No thank you”
Your realtor is just a clerical worker. He knows as much as how much the other party is willing to accept. That's it. There's no magic expertise to his shit. A average realtor doesn't know shit. A phenomenal realtor is one that helps you Identify investments and gathers enough data for you to make good bets. Those are very fucking rare. So no so thing as low balling. Just about how low you will go. Offering 600k is fucking stupid. Assuming property is worth 1million. Go at 885
Don’t feel bad for your Realtor. That’s their job. If they put up a fuss, get a new one. What I would say from personal experience is to wait until the seller starts to decrease their price and gets within a stone’s throw of what you’re willing to pay. Or, make a lowball offer, but just plan on it being rejected. A $600K property in 2018 should be about $900K in 2024. It sounds like everything is also 6 years older, so technically, it might even be worth a little less than that. By listing at $1.1M, the sellers are saying that that they were willing to waste time on being unreasonable with their price.
You dont need to submit a formal offer. Jusr ask your realtor to test the water for you. Any good realtor would be able to gauge the interest and price range of the seller.
Don’t worry about your realtor. They are soulless beings. They will get over it.
House prices are up c55 percent since 2018. You have identified 100k in repairs needed. This suggests an offer of 850k seems apprpriate. You do not need a buyer agent, saves YOU 25k as YOU are the sole source of all the money. This means seller is getting, in effect, 875k.
Don’t worry about embarrassing your realtor. They whould be happy you’re prepared to make an offer. Be reasonable with your lowball offer. Explain how you came to the number. I’ve received a ridiculous lowball offer. Just said no and moved on. On the other hand I’ve received another reasonable lowball that backed up their offer with comparable and price per foot. We came to an agreement for that young first time home buyer.
Your realtor is to represent you and get the best deal on your behalf. They should be the ones advising you what to consider. If you’re worried about how your realtor would be perceived then they must not be doing a good job.
saving some embarrassment vs some major savings
Screw your realtor. They either write the offer you instruct them to, or you write your own offer or find an agent that will. You don’t need them.
You could try $100k lower and waive some conditions with an early close.
Your Realtor should be able to give you the fair market value, comparing with at least 3 properties in the neighborhood that sold recently. You are heading into the stronger season now, May/June so any seasonal downward adjustment seems unlikely (regardless, check if there's a downward trend due to mortgages being so expensive now). A low ball offer would be maybe 10% less what they're asking or at least 5% under what one would perceive to fair market value. If your offer is deviating by 20% I guarantee you you're wasting everyone's time, if the seller isn't extremely "motivated". Feelings don't matter, but if you are asking for stupid things like doing 750k offer, the agent may adjust how they work with you and you'll lose the opportunity to negotiate with this one seller.
who cares about your realtors feelings? is it worth 10s of thousands of dollars to you? I've lowballed hard on every property I've ever bought and never failed to get a counter and land closer to my number than the list price. it's called putting a stake in the ground. don't fall for realtor bullshit
Find another agent to represent you. Remember though, Seller’s agent is duty bound to present the offer to the seller, but the seller doesn’t have to respond to your offer. Stick your toe in the water but be prepared for all potential outcomes. Also, rule of thumb, the lower the lowball offer is , the cleaner it should be. If you throw financing, inspections etc in, the seller may “be offended”. Good luck.
What's reasonable is the current value of the property or up to 15% lower. Ignore the 2018 price, the market changes in 6 years, houses change, and areas fluctuate in popularity. Go by sold stats from this year and preferably this month.
Seems to me that you don’t want to embarrass yourself with your own offer.
How much are you thinking? Like offering 1m lowball or $750k low ball?
What are the comparables selling for in the area?
Do not worry whatsoever about your realtor they work for you. That being said, it is a waste of everyone's time yours included if you put in an offer that is not serious. Like lets say you offer 500K etc. No one knows what is a reasonable price to estimate without a link to the house (or at least details on how big, what part of town, beds, baths etc.). So that being said no one can really say. If the house has been sitting for 30 days you can probably go under ask. Who knows by how much though. The seller is of course not obligated to sell for less than they think it is worth.
The only problem you might run into is the fact that since the last sale date prices have roughly doubled (depending on the neighborhood as well, of course - Toronto being completely F&\*KED anyway). Also, detached vs semi vs town vs condo is a large factor. I'm guessing that "low" in this case would be around $900K to $1,000K. Not sure how low you wanted to go but likely the seller may not like any lower than that range and depending on their situation may just hold. Of course, if they are motivated it might work out differently. Good luck in any case.
Well you could consider basic inflation into the price estimate and make the calculation of the price to include inflation and property taxes every year for an equivalent price then decide if to pay lower or higher than what they paid
Never give a fuck about your realtor. On one hand is money, on the other hand are your realtor's feelings.
Don’t be embarrassed for them. Offer what you can afford and think it’s worth. Maybe you get lucky!
If your offer isn't offending anyone your doing it wrong
Don’t worry about what your realtor thinks. They are banking 2.5% for being a paper administrator. Buyers do most of the leg work. I recently bought a place that was originally listed in 2022 for 850. We paid 650 for it which was another 50k off the listing, I got this number by looking at what prices were in 2019/2020 in the area and giving a bit of flex to them. Use house sigma and look at 2019/2020 comps and figure out something in there. I reset the last 4 years on the seller and I’m happy with the purchase. The house I bought will be cheaper in a year without a doubt but it was time for my family to buy and I don’t look at housing as an investment.
$700k max
Embarrassing your realtor? lol
Make the lowball! I just purchased a place with low ball offers only in gta. You will make more offers and most won’t be accepted but eventually something will stick. I always came up with my valuation and made that offer and stuck to it no matter what my realtor says. I was told ‘not a chance’ but a seller eventually accepted. I was $200k below comparable for last month.
It's your realtor's job to be embarrassed. If he doesn't want to make your lowball offers, get another one.
Realtor here - even when a client suggests an offer that seems lowball, it would be extremely disrespectful to make them feel like it would embarrass me. Why would it embarrass me? Why would I care if the sellers or listing agent get offended? It’s real estate not anyone’s feelings. I can make my thoughts known that I don’t think it would be remotely be considered but if I get the sense that they still want to go ahead with it, this is my job and we do it. Now as for how it goes, either: 1. It completely gets ridiculed by the listing agent who tries to make me feel embarrassed but it’s just business, this isn’t embarrassing. My clients may be a bit delusional but that’s on them? I explain what happened and usually it’s a lesson for them to learn. 1.2 It gets completely ridiculed but I stand firm and some time later when they still haven’t sold it they come crawling back to see if we’re still interested and now the games begin lol. 2. Maybe the low ball offer is too low but not exactly so far off from the lowest amount the sellers are willing to accept, so we play ball and negotiate until we meet somewhere in the middle. 3. It works! We should never assume what the seller’s circumstances are. Some people are in a rush to sell due to circumstances we know nothing about. This just happened with a property my clients offered on a couple months ago. When they told me what they wanted to offer in my head I was like “…. are you serious” but I explained what I thought the lowest the sellers would be willing to accept is with kindness and then gave them a “but hey let’s try it!” (It was offers anytime and had been sitting) and it WORKED. Seller was old and sick, kids/poa wanted it sold before seller dies. My clients are laughing now. If there’s a lesson for you as the buyer to learn then you gotta learn it. I’ve written plenty of offers knowing it would be a lesson for the buyers and it was. Home buyer denial is a real thing, especially for first timers. But respect is always a must and you literally never know what could happen. Anyway don’t feel bad for your realtor, it may be tedious to write offers but it’s really not that much work in the long run for what they will make from your eventual purchase, whether it’s now or later. Good luck! Edit: typo
It seems that you’re trying to find negative spots from the place, ie. “small cosmetic improvements”, “cheap materials”, “nothing major was updated”, “property sitting for 30 days” to justify your poor low ball offer. If it’s that low why do you want to offer? Especially when you listed so many cons?
Once had a realtor tell me an offer was embarrassingly low - and they didn’t want to submit it. I told them to - they did and we got the house
Best give an offer for 680 max or hell go for 7. No more than that. As per information in the post. That's would be good. Not a low ball.
Did you do it ???? Update us?! And share the neighborhood you are trying to do this in
Low ball! I did this for my own house and a friends and we paid just a bit over my asking price It worked out for us. I’m a realtor why would I want my fam/friends overpaying in this shitty economy. End of the day the contract clauses are the same the final number is up to u.
I would offer 650k no conditions. Real estate will drop a lot coming due renewal
Thats the same statement that has been made since 2010 and look at real estate now. It will never crash because there are people waiting for any slight dip to buy
both of you are morons
Crash incoming. All experts agree with me. When I say this I am speaking for all Canadians
😂
I sound like someone you know eh? Trudeau hahhahah
Source? 😂
Make up shit
Hate to break it to you but the crash already happened (15-20% depending on your area). We're in a holding pattern until rates start to drop and then prices will SLOWLY start rising again. Look up the cost of a rental in your area for the answer why.
anyone buying right now is gonna regret it lol
Also fuck realtors. Easiest fucking job on the planet to lake a buck. Just lots of competition now. So easy.its stupid. I don't do it because it's sleazy as fuck. If I did living in kelowna I would have made so much fuck... all good. I do know realtors that are good people But ya.... sleazy shit.
Fuck your realtors reputation
I wouldn’t worry about the realtor because that’s his job and doesn’t take long to type up an offer since probably all similar wordings just fill in the amounts offered and conditions. Keep in mind even it’s sitting on the market 30 days already doesn’t mean he’s desperate. I sold my house 2 years ago and was willing to pull it off the market unless I got the proper bids in. I’d try offering 1 million even just to see what he returns at. If he returns with $1,090,000 he’ll be hard to deal with haha. But he realistically should come down $40,000 or $50,000. Good luck and ignore what he paid for it. He’s entitled to get what market value is.
You shouldn't interfere in the buying process, let the realtor do that. He knows best what's the right choice for him.
Dudes. Low balling was a thing of the past..... wake the fuck up. It's getting fucked. If your successful with a high paying job and a wife that's the same. Pull the trigger and get in. If not don't. Unless your tight with your family. It isn't going to crash more than 20 percent. And at 1.2 that's not alot for your majority. Most make less than 50k a year.. Keep that in mind.
this is bullshit. Low ball, we are in a recession and OFSI rules will fuck everything next year so the house will likely go down in value.
Not by much bud it's stupid