Grumpy by Birth
Happy by choice
- Joined
- May 27, 2017
- Messages
- 2,259
Depending on when they bought/how much they paid, that could be true. If someone bought in the past few years and paid around $200/point and is now having to sell at $100 point, you're talking a potential loss of $5K, $10K, or even $20K or more depending on the size of the contract. But many are probably still breaking even or coming out slightly ahead of the game if they bought early when prices were a lot lower than recent years.... I have had brokers tell me (in the manner this was discussed I believe the comments to be honest) that sellers are taking large losses in the market right now.
On the topic of lowball offers... I made an offer that was $20 below asking price, but IMO what I paid was near market value (perhaps a slight bargain, but not a "fire sale" price). If the asking price is inflated, then offering a fair market price (even if that's $30 below what they're asking) shouldn't really be considered a "lowball" offer in my mind. It's a realistic offer.
I don't know if the seller accepting $20 less per point meant that they were losing money or not (they might have still made a profit on the sale), I just know that similar contracts have been selling for around the price I offered, even pre-COVID.