Overpriced house - lowball offer or wait?

[Anonymous]

I agree w several of the recent posters. That area's school are either bad, or, have a bad reputation. You need to decide that. Meanwhile, there is nothing to prevent you from bidding $100K below ask. Where is the harm? However, if they ignored your bid, and then contacted you weeks or months later, no way would I raise my price, even if it seemed cheap at $100K lower. They had a chance to sell it to you at $100K less - they opted to reject it. So why on earth would you pay the same, or even more, at a later date?

[Anonymous]

Back to basics here. OP-do you know whether other offers have come in? How do you know how long it has been on the market? Are you working with an agent yet?

My house sold in 4 days from listing to contract and Zillow said it was on the market a full week before it actually was (it had a "coming soon" sign outside) and said it was still for sale another two weeks after the contract was signed. So if Zillow is your source, watch out.

I relied on comps and my realtors advice to price my house. In older neighborhoods, the state of the interiors of the homes varies much more than newer construction. ONe house can have a single 40 year old bathroom while another could have 3 bathrooms that have all been updated. Zillow and other sites consider that a "comp" because of location but it really isn't.

What is the walk score? THat is a really big deal for some and can outweigh physical attributes of the home for certain buyers.

Also, logically, why would a buyer list so much above a realistic price? If it doesn't appraise at that price or close to it, at sale, it won't matter if the buyer actually does get their asking price. If it really is so high, you have to assume the buyer is expecting only a cash offer. I don't think you can really assume any of that.

If you offered me ten percent less than I listed for within a month of listing, I would have rejected you out of hand.

[Anonymous]

Anonymous wrote:I agree w several of the recent posters. That area's school are either bad, or, have a bad reputation. You need to decide that. Meanwhile, there is nothing to prevent you from bidding $100K below ask. Where is the harm? However, if they ignored your bid, and then contacted you weeks or months later, no way would I raise my price, even if it seemed cheap at $100K lower. They had a chance to sell it to you at $100K less - they opted to reject it. So why on earth would you pay the same, or even more, at a later date?

Why is this person on DCUM.

[Anonymous]

We lowballed by 10% - 100k - on an overpriced house sitting for 3 weeks. Seller wanted to reject, realtor told them not to, we met in the middle.

[Anonymous]

How do you know the house is overpriced?

[Anonymous]

Anonymous wrote:How do you know the house is overpriced?

OP here. Thanks to everyone for weighing in! We know that it's overpriced because there are very good comps for this neighborhood and we have taken into consideration variations in size, floorplan, finishes, etc. Our agent agrees.

[Anonymous]

This doesn't make sense , if you can afford the payment and it appraisers who cares. no one is under paying in ths sellers market with such low inventory

[Anonymous]

Anonymous wrote:This doesn't make sense , if you can afford the payment and it appraisers who cares. no one is under paying in ths sellers market with such low inventory

Totally wrong.

[Anonymous]

Help me understand this. Let's say OP pays $100k more for this house rather than waiting or buying another house that's priced correctly. When it comes time to sell, won't OP walk away with $100k less?

[Anonymous]

Inventory is tight no one is getting deals anymore

[Anonymous]

Anonymous wrote:Inventory is tight no one is getting deals anymore

Either you're a realtor it you have an overpriced house currently listed, or both. Just because a house is listed at a certain price doesn't mean it's worth that. The buying market decides what it's worth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Inventory is tight no one is getting deals anymore

Either you're a realtor it you have an overpriced house currently listed, or both. Just because a house is listed at a certain price doesn't mean it's worth that. The buying market decides what it's worth.

I am neither, I am a buyer who recently came to terms with the fact I missed the bottom and am seeing homes which I thought were over priced go for asking and with bidding wars (this is inside the beltway)

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you know the house is overpriced?

OP here. Thanks to everyone for weighing in! We know that it's overpriced because there are very good comps for this neighborhood and we have taken into consideration variations in size, floorplan, finishes, etc. Our agent agrees.

So it is overpriced because you say so.
Have you also been inside those homes?
Prices do not always reflect the comps because there will be some variances. 10% variance is OK
Do you want the house or not?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We low balled after 3 months of sitting on the market, after the third price reduction. We offered what we thought the price should be and asked for closing. The sellers countered for a higher price than listed. We walked away. We found a better house that came on the market days later.

Be prepared to offend the sellers. I really didn't care they were offended because it is a business transaction. Just be prepared to move on. There are other houses on the market and more coming on line every day. It is just a house.

Was the higher price equivalent to the closing you help you needed?

BTW, if you need help with closing costs, you probably shouldn't be buying.

Sellers pay closing in this market, honey. We can afford closing costs but why would I pay it in this market?!

[Anonymous]

Anonymous wrote:Inventory is tight no one is getting deals anymore

Not true. The stuff on the market is often sh*t. Overpriced sh*t is still overpriced sh*t regardless if it is the only dump in the neighborhood. If you wait, good stuff comes up all the time. If you are buying you have to be patient.