Maybe someone can explain this to me-NEW UPDATE! #71

[jt'smom]

i haven't read the whole thread, but i will say that when we bought our home last year, we paid about 50k less than the asking price. our house was supposedly "under market value", but looking at the sold comps in the neighborhood it was priced more at the "tax value" and definitely over what other houses were selling for.

i believe that your house is worth what the market will bear, not what you owe on it, which is what i think a lot of people around our area are wanting to price at. i guess that's not going to change until the housing market recovers.

 

[Hannathy]

Market value is a funny thing. The fact that the house was on the market for quite a while with no offers suggests that it isn't priced below market value.

true because if it was it would be sold

 

[sbell111]

I'm surprised that the buyers agent would even write an offer up if the buyers weren't serious. I sold real estate for a few years before I "retired" from it, and I made it pretty clear that I would not write an offer unless it was a serious offer. What a huge waste of time if they are just playing around!

There is a difference between making a low offer that is unlikely to be accepted and not being serious. We have no reason to believe that the person making the offer would not have gone through with the sale if their offer was accepted.

That being said, I think that any real estate agent that refuses to pass an offer on to a seller may be risking disciplinary action from the local RE commission.

 

[mom2aandj]

With this market, it's hard to know what "market value" actually is. There is a huge amount of shadow inventory, banks are trying to keep from market because there is already a glut of homes available, lending has tightened, people are nervous.

SO true. The market around here is DEAD. Nothing is moving. Yet people continue to try to put their house on the market, and insist it is a *good* price because it is less than what they paid for it 5 years ago. Doesn't matter. The market value is whatever the market (buyers) will give your for it. The Chicago Tribune had a front page article today about how 20% of houses in the metro area were behind on a mortgage payment by 1 or more months, and that 80% of THOSE will go into foreclosure at some point. This is a whole different real estate market.

 

[The Mystery Machine]

true because if it was it would be sold

I get what you guys are saying. The house is in Maine.

The thing is that she does not have to sell. If you "don't have to", do you wait until the market comes back up?

I think so. I would continue renting personally.

 

[arminnie]

Many sellers have no clue what "market value" really is. If a house has been on the market for months and months (or years and years) it is NOT priced under "market value".

Market value is what a willing buyer and seller are willing to agree on. Not what a seller "thinks" it is worth. Market value is also not "what the buyer wants to offer". It is when the two converge.

Also a buyer in a market where there are tons of houses for sale just sitting there has to assume that prices are still going DOWN. I bought in the past few months. Part of my decision was the assumption that housing will continue to lose value for quite awhile before it even levels out. It could be years and years before there is any real appreciation.

Empty houses are a dime a dozen in so many markets.

 

[luvflorida]

Is this house in Florida?

The house is on the coast in Southern Maine.

Thanks, everyone, for all the insight. I appreciate it and can see a little more clearly why someone would make such a low offer. I still believe that our house is not overpriced, and neither does our agent. Of course, we could drop the price just to be rid of it, but we won't do that.

We'll counteroffer with $5,000. off the asking price, and are willing to go a bit lower, but not nearly as low as they're offering. I know I'm still emotionally attached to the house, and it's hard not take such a low offer personally. We refuse to just give away the house, which is what we feel we'd be doing by accepting anything way less than what we believe the house is worth. And yes, I know it's only worth what people are willing to pay for it, but hopefully some time in the future, things will rebound and it'll be worth our original asking price or more.

It's just so frustrating the way the housing market is today. Fortunately, we don't have to sell. We'll continue to rent it and either decide to keep it or sell when the market rebounds.

Again, thanks. Like I said, I usually don't vent much on these boards, but this really got to me! After reading several other threads today, I realize there are many people that have a lot more things in their lives that they're dealing with. In the scheme of life, a lowball real estate offer isn't anything to get worked up about.

 

[PatsGirl]

To say $45K less than asking price is not acceptable is subjective. Is the asking price $450K and thus the offer a 10% decrease or is the asking price $900K and the offer a mere 5% decrease? Sure, if the asking price is $200K, this might be a ridiculous offer but either way, try not to take it personally ~ like others said, everyone is trying to get the best deal they can.

 

[arminnie]

I think it also matters how big the discrepancy is. $150,000 is MAJOR - unless you are talking about a $4,000.000 house.

But sometimes a $50,000 drop is in the range of reality. I sold right after the dot com fallout and 9/11. I reduced the price by $50,000 when I listed it. I had two full price offers very quickly. I had built in an additional $10,000 that I would have been willing to come down.

As a buyer the only way I would consider a $5000 reduction to be meaningful is if the original price was in the range of $150,000.

 

[C.Ann]

Because they can always go "up" - but not "down" - if you are willing to negotiate back and forth..

 

[Mommee]

We took the house off the market for a year, and just put it back on the beginning of June. We have a six month contract. We lowered the price from when it first was on the market and the house is DEFINITELY reasonably priced. We made sure to price it below the asking prices of comparable homes in the area.



At this point, if it doesn't sell by the end of our contract, we're taking it off the market. We don't HAVE to sell the house, but it would be NICE if we could. We love the house, but for a variety of reasons, we have relocated to another part of the country (weather and family mostly) and the house seems like a heavy weight on our shoulders, if that makes any sense.

There is always the worry of things needing to be repaired or something going wrong with the tenants (we're renting it out at the moment). Honestly, we've talked of keeping it as a second home or summer home, but it's really too big of a house to keep for that reason. It would be nice to sell it and buy a smaller house in that same area, that we could use for the summer and holidays.

that could likely be the issue. Selling price is what's important, not list price.

 

[horseshowmom]

Again, thanks. Like I said, I usually don't vent much on these boards, but this really got to me! After reading several other threads today, I realize there are many people that have a lot more things in their lives that they're dealing with. In the scheme of life, a lowball real estate offer isn't anything to get worked up about.

You're right, of course, but there's still nothing wrong with venting about something that affects you. It always bothers me when posters try to vent about something, and other posters come on to beat them over the head with how much they should be grateful rather than venting (not on this thread but others). We all have days when things aren't the way we would like for them to be, and it's perfectly okay to feel that way!

 

[tvguy]

they don't know what your financial situation is-if you have no equity and can't budge, or equity and might budge.
.

Actually they probably do know. Mortgages and their balances are normally part of the title record. And I would think that information would be in the disclosures, especially now. One of my co-workers had two full price offers accepted, but then vetoed by the sellers mortgage company because the seller was upside down, and it was a short sale. So she started checking the disclosures on other houses before making offers, if it's a short sale, she moved on.

 

[chloelovesdisney]

Many sellers have no clue what "market value" really is. If a house has been on the market for months and months (or years and years) it is NOT priced under "market value".

Market value is what a willing buyer and seller are willing to agree on. Not what a seller "thinks" it is worth. Market value is also not "what the buyer wants to offer". It is when the two converge.

Also a buyer in a market where there are tons of houses for sale just sitting there has to assume that prices are still going DOWN. I bought in the past few months. Part of my decision was the assumption that housing will continue to lose value for quite awhile before it even levels out. It could be years and years before there is any real appreciation.

Empty houses are a dime a dozen in so many markets.

Ditto. Ultimately a house is only worth what someone is willing to pay for it.

 

[miinutes]

People are thinking that most homeowners these days are desperate to sell their home. Good Luck stay strong

 

[Mimi1965]

The house next to us has been empty (owner died) fro 6 months
They built nicer than the rest of us
Its for sale for $100,000 more than the rest of us could sell ours for-it is bigger and has upgrades and a pool

There are NO comparable homes around-I can not see it ever selling unless they (the estate) take a low ball offer.

I know of a couple people who bought homes lately and got them for $12-18000 lower than list price and the sellers were RELIEVED to sell in this market.

 

[miinutes]

Also just let your realtor know you are not going under this price so automatically turn down anything below it, that way no reff raff

 

[luvflorida]

I guess these people are really serious about buying the house.

After their offer of $45,000.00 below our listing price, we lowered our asking price by $5,000.00. They then came up another $20,000.00. We said no, and they came up another $17,500. They were now only $2,500. lower than our counteroffer. We said yes.

We were really surprised that they came up in price as much as they did. We have a few other things to work through (they have a condo to sell, but it appears they already have buyers) so we'll see how it goes.

 

[golfgal]

I guess these people are really serious about buying the house.

After their offer of $45,000.00 below our listing price, we lowered our asking price by $5,000.00. They then came up another $20,000.00. We said no, and they came up another $17,500. They were now only $2,500. lower than our counteroffer. We said yes.

We were really surprised that they came up in price as much as they did. We have a few other things to work through (they have a condo to sell, but it appears they already have buyers) so we'll see how it goes.

Congratulations!!! You just never know but in their situation, I probably would have done the same thing.

 

[The Mystery Machine]

I guess these people are really serious about buying the house.

After their offer of $45,000.00 below our listing price, we lowered our asking price by $5,000.00. They then came up another $20,000.00. We said no, and they came up another $17,500. They were now only $2,500. lower than our counteroffer. We said yes.

We were really surprised that they came up in price as much as they did. We have a few other things to work through (they have a condo to sell, but it appears they already have buyers) so we'll see how it goes.

Well....CONGRATULATIONS!!!!!!

I hope the deal goes through for you!!!!!