Overpriced house - lowball offer or wait?

[Anonymous]

$100K under list means nothing unless we know the approximate listing price. If you're talking $1.5 million, that's a very small percentage if you're talking $800,000 it's a much bigger deal.

[Anonymous]

$100K seems like a pretty small difference. I would split the difference if the house was perfect for my family - as to size, location, no repairs needed, etc., (whatever your criteria are). That will cost you almost nothing over 30 years at current rates, and it won't be so low as to be offensive. HOWEVER - having loved a house that was priced about $500K - $1m too high? Someone who has a crazy price on their house either loves it and doesn't really want to move, or has retirement pending in a few xxx, and doesn't have to move, or thinks the market is hot but has no real reason to be somewhere else. If that is the case, they will NOT come down. And if the house is cool, someone will eventually pay their price.

[Anonymous]

I agree with PPs. A lowball is not going to succeed this early in the game and may well be counterproductive so why do it? If you knew someone else was going to make an offer, how high would you go?

[Anonymous]

Anonymous wrote:We submitted a fair value bid, $100k below list price and did not receive a counter offer. The house sat and sat with no other offers.
6 weeks later we submitted a bid a little bit more than last time and started discussions. Went under contract, and then the appraisal came in, exactly at our original offer price.
Got in discussions again and ended quite close to our original offer.

Nothing to lose, just keep in touch with the sellers. Try to keep the agent noise to a minimum. Boy, did they make up caricatures of the sellers and us! Start a dialog, hopefully they are reasonable and someone you want to do business with. Their expectations may be off because of their agent too, s/he may have oversold the price to them in order to get the business.

Not OP but wondering what you mean by the part about caricatures?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We submitted a fair value bid, $100k below list price and did not receive a counter offer. The house sat and sat with no other offers.
6 weeks later we submitted a bid a little bit more than last time and started discussions. Went under contract, and then the appraisal came in, exactly at our original offer price.
Got in discussions again and ended quite close to our original offer.

Nothing to lose, just keep in touch with the sellers. Try to keep the agent noise to a minimum. Boy, did they make up caricatures of the sellers and us! Start a dialog, hopefully they are reasonable and someone you want to do business with. Their expectations may be off because of their agent too, s/he may have oversold the price to them in order to get the business.

Not OP but wondering what you mean by the part about caricatures?

sounds like there were no other counter offers and the sellers made it up. I fee like that happened to us

[Anonymous]

OP here. 100k is ten percent so I would think that would be a lowball on a new listing. We would be more open to splitting the difference as a PP suggested if it didn't also need a ton of work. It's a sought-after neighborhood with zero inventory, so they must be hoping someone will bite. I think there's a distinct possibility of that happening, so I guess we have to weigh the risk of losing it against overpaying.

[Anonymous]

There is no such thing as overpaying. The "right" price is whatever someone is willing to pay for it. If there are no other homes available in a sought after neighborhood, then it might b priced right. Just because the last house sold in the area might have been for less or might have been in better condition is meaningless if this is the only house on the market in a desirable neighborhood.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We submitted a fair value bid, $100k below list price and did not receive a counter offer. The house sat and sat with no other offers.
6 weeks later we submitted a bid a little bit more than last time and started discussions. Went under contract, and then the appraisal came in, exactly at our original offer price.
Got in discussions again and ended quite close to our original offer.

Nothing to lose, just keep in touch with the sellers. Try to keep the agent noise to a minimum. Boy, did they make up caricatures of the sellers and us! Start a dialog, hopefully they are reasonable and someone you want to do business with. Their expectations may be off because of their agent too, s/he may have oversold the price to them in order to get the business.

Not OP but wondering what you mean by the part about caricatures?

The agents made up and told us how "difficult" and "stubborn" the sellers were, as well as some sob story about their finances. As a reason they just could not come down in price. Totally off, we spoke directly with the sellers, the agents caved on their commission rates to get the deal done, and the couple went on to build a big new costly house in Virginia.

Never underestimate how the realtor's self interest in getting the deal closed and her commission will taint your buying or selling experience! Even our neighbor, should not be selling right now, in this environment his large house, buyers aren't our there now. Instead his agent who promised the moon and the stars has convinced him to look desperate.

[Anonymous]

Anonymous wrote:There is no such thing as overpaying. The "right" price is whatever someone is willing to pay for it. If there are no other homes available in a sought after neighborhood, then it might b priced right. Just because the last house sold in the area might have been for less or might have been in better condition is meaningless if this is the only house on the market in a desirable neighborhood.

Spoken like a true greedy seller. Yes there are people out there who will overpay for a given house, and OP could certainly lose the house to one of them. However, that doesn't mean the concept of value as determined by comparable sales is meaningless. OP, if you lose this house, there will be more houses in the spring.

[Anonymous]

7:16 here: I stand by my statement. Plenty of ugly houses have been over priced and sold in highly desirable neighborhoods when inventory is low. Personally, I wouldn't price a home above its realistic value. I'm just tring to make the OP aware that just bc they think it is overpriced doesn't mean that it truly is. What if this house has something unique about it (lot? Design?). If they love the house and want it, then they should make an offer instead of assuming the price will come down.

[Anonymous]

I don't think the Reston house is overpriced. Forrest Edge is a STEM and AAP school. Look at the square footage as well. It may not sell as quickly this time of year but it will sell.

[Anonymous]

Anonymous wrote:I don't think the Reston house is overpriced. Forrest Edge is a STEM and AAP school. Look at the square footage as well. It may not sell as quickly this time of year but it will sell.

I don't think that's OP's house. She said highly sougHt-after neighborhood. OP, post your house so we can tell you if it's overpriced. I'm on bed rest so I have plenty of time to look at comps for you.

[Anonymous]

$975k to live in the South Lakes zone? Sorry, for that money I want Oakton at the least.

[Anonymous]

If you offer asking price and it appraises then it's not over priced. The only way to over pay is to pay above the appraisal price. The buyer is trying to under pay.

[Anonymous]

Anonymous wrote:I don't think the Reston house is overpriced. Forrest Edge is a STEM and AAP school. Look at the square footage as well. It may not sell as quickly this time of year but it will sell.

What if your child is not AAP? Look at the scores and demographics of the non-AAP population. And of Langston Hughes and South Lakes. AAP at Langston Hughes is a joke and becoming worse every year.