# Opinion on low-balling



## Oilers82 (Jan 17, 2011)

Hi all

Just a quick question re: wanting to put in a low-ball offer. There is a townhouse listed that we are interested in but the price is exorbitant. The realtors are being idiots and asking 20% higher than the highest historical selling price (sold late 2010) for the *same size/layout of unit* within the complex.

The place is a 1 bedroom and den, but has been listed as a 2 and den to try to boost its value. There have been several open houses and they are not with-holding offers (ie offers any time). Lots of views, apparently no good offers. The place has been on the market for about 3 weeks.

We believe the price is way too high but the location is great for us. Do you think its worthwhile to put in a very lowball offer (ie 25% less than asking price) to see what happens? I think that the realtor has dis-serviced himself by putting in a dishonest listing and has probably driven away some potential buyers with their false advertising and very high asking price.

Finances are not an issue in this case. It would be a cash purchase and would be for my parents to live in (the place is very close to ours). I would be willing to buy the place only at my price though, I wouldn't pay anything near asking (thus I wouldn't negotiate/work with the agent..it would be my price or I'd walk).

What would you guys do? Lowball'em and see? Wait a few more weeks then lowball? Or is that a waste of my time.


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## humble_pie (Jun 7, 2009)

others will have good suggestions, i'm not knowledgeable in real estate.

but it seems to me that once you've refined your bidding protocol, you could use it to make an offer for every single appropriate property that ever comes up in your neighbourhood. Basically always the same offer. Cash. That's it.

sooner or later, the right seller will surface to whom such an offer will prove irresistible.

ps but you are always going to have a property inspected first, right.


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## Jungle (Feb 17, 2010)

It could be the owner insisting the high listing price. Not the realtors. THey could just be following orders. Most if not all homeowners are biased and believe their home is worth more than market price.


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## GeniusBoy27 (Jun 11, 2010)

Offer what you want to offer and see what happens. The worst that can happen is no. On the other hand, the other side of the coin is that the seller can ask any price ... if no one's interested, then they're not going to sell it. It's simple supply and demand.


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## Cal (Jun 17, 2009)

An offer will do no harm.

However there are lots of factors that can influence wheher they will take the offer, or even send a counter. Now by lowball offer, I can only assume that your are talking 20% or so less than asking price.,

IMO anything within 5% is a very serious offer.

3 weeks on the market probably means they are not desperate to sell, but you never know their situation.

Depending upon where you live, and how the market is, but generally speaking it is not a buyers market as of yet.

If they are asking a really high price, as stated, my guess would be that they are just listing it to see if they get what they are asking. Then they will sell. But again, you never know, and it costs nothing to make an offer.


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## andrewf (Mar 1, 2010)

You can let them wait a little longer before sending your offer. Time to let reality sink it is probably going to help them consider your offer.

As far as the price: agents are not interested in getting high prices. They are interested in quick sales, high $ volume and would thus rather list at low prices. You can rest assured that it is the seller that wanted that price.


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## Zzed (Feb 16, 2011)

Just put in an offer something like this:

I am offering $xxx.
with a 10% deposit cheque. (to show that you're serious about your offer)
conditional upon inspection.
no conditions on financing.
You can also say: comparables are 20% less than your asking price and the unit is actually 1 + den rather than 2 + den, to justify your offer.


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## sags (May 15, 2010)

If there is one thing I have learned over the years, it is a lot easier to buy things, including homes, than to sell them.

I would look at comparable sales in the area, factoring in any costs associated with making the home comparable.

Then you make an offer based on the reality of the local market, which may or may not be the viewpoint of the seller.


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## kcowan (Jul 1, 2010)

Sit and wait. If it sells quickly for its current price, you are not interested. Play the waiting game. Your best outcome would be if they accept a conditional offer. You can bring an unconditional offer at any time.


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## Berubeland (Sep 6, 2009)

I say make the offer, the only illegal offer is the one made with a gun.


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## Rico (Jan 27, 2011)

If you're in no rush, sit and wait. If some dummy wants to overpay for the place, let them. Likely most people are doing the same math as you are (or they should be) and the place will just sit.


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## financialnoob (Feb 26, 2011)

A friend tried to do this but his real estate agent refused, claiming it would be unprofessional. That was the last time he called that guy.

I say go for it. What do you really have to lose?


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## Oilers82 (Jan 17, 2011)

Thanks for the advice guys! I think I will take your advice...sit, wait it out a bit, then put in my offer. Not much to lose by doing so. 

Your opinions are much appreciated!


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## marina628 (Dec 14, 2010)

If you want to low ball an offer call the listing agent to do it as that will mean lower RE cost to seller usually.I really doubt any seller would take 25% off the price in Canada but you have nothing to lose.


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