How low is too low?

I have been reading the posts about people who are unhappy with low offers, and right now I am about to make an offer on a house, but it is a kind of low offer, so I don't know how it will be received. They are asking 429k for the house, but it needs a little bit of work, not a great school district, but a nice town, and the house is not so big, but cute. The original price was 439k and it just came down two weeks ago. I want to offer 375k, and I honestly believe that the house is only worth this, maybe a little more. However, I don't want to offend the owners with a low price. Does this sound too low? Should I wait a few months (I'm not in a rush) before coming in with my low offer? Should I not bother with such a low offer? Advice from people who have been in the same/ similar situation would be great!

Re: How low is too low?

i think the offer is almost rediculously low. i can't say for sure since i haven't seen the house but if the asking price is 429K, i think 375 is a slap in the face. 400k is probably the lowest lowest lowest they are willing to go for something priced at 429.

and if the house is truly not worth 429K, then no one will buy it. and if you really think the house is only worth 375K, than the house will come down.

i've made low offers in the past and none have been accepted. they almost alwayscounter with approx. 10K less than asking. and we end up about 15K below asking as their acceptable price. 20k less was the lowest i have ever gotten.

Re: How low is too low?

Re: How low is too low?

You are probably right, but it is in a neighborhood of small houses, that are frequently on the market b/c they are not readily expandable, and their property sizes are not very large. In addition, it is not a bad area, but def. not the most desirable in the town. Even still, I have a feeling that the offer is too low at this point, even if it is all it is worth. Oh well-- I will wait, and if it is still hanging around in a few months, perhaps I will swoop in then with my offer. Thanks for your advice!

Re: How low is too low?

Re: How low is too low?

Do not feel bad. This is not a personal thing...this is a business decision and you have to look at it that way. Stop worrying about the seller's feelings and offer what you feel it is worth. The worst they can say is no. In this market you never know what can happen. Maybe the need to get out etc. Just put in the offer!!

Re: How low is too low?

Sorry but I look at it this way - if you look at the area and the house etc and bid based on what it is really worth it is not a slap in the face. Selling/Buying a house is a business not a transaction of friends. You should bid what you think it is worth. If the seller doesn't like it they can counter or just flat turn it down they don't have to accept any offer they are not happy with. But if you bid low just be prepared to either come up if they counter or lose the house if they don't like the bid. Houses that are priced right sell quickly (or quicker) than those who are priced too high. If someone places the house on the market for a realistic value (meaning what the house is worth) then they will get bids that are on or closer to that asking price. If they place it too high they are asking for lower bids. They can then chose to take that offer or leave it. I wouldn't worry about offending the seller - you are not looking to be their best friend you are looking to buy a house. But again be prepared when making a bid to lose the house if it is below asking price. It is like buying a car you have to be willing to walk away.

Re: How low is too low?

A house is only worth what someone is willing to pay. We saw a house that was listed at 660. After almost a year it sold for 525.

Re: How low is too low?

Message edited 4/3/2007 7:31:18 AM.

Re: How low is too low?

It depends. what did other houses in the area go for. We bid $475,000 on a $500,000 house knowing we could give asking, but the sellers were totally offended and did not even counter. Other house in the area were going for about that or a bit more. We thought it was a "buyers market" and bid lower than asking.They got full asking price for their house.

Re: How low is too low?

I don't think it's a slap in the face. A lot of homes in our area that originally listed between $429-$439k, ended up selling between $375-$400k. A family friend, who's a realtor, gave us the information of the last 10 home sales that were comparible to what we were buying to help us get an idea of what was a fair offer (even though we did a FSBO).

If you could, ask your realtor to get you information on other home sales in the area. That way, you can see if your offer is in-line with where it should be and the maximum you should offer based on recent sales.

The house we bought was going to list at $429k with a realtor. We bought it before it was listed for just above what you are planning on offering. They were more willing to accept that amount since they didn't have to pay a realtor fee but, still, I don't think they would have gotten anywhere near $429k.

Good luck!

Re: How low is too low?

Message edited 4/3/2007 8:12:18 AM.

Re: How low is too low?

did they just lower it? If they did, then they might not even consider your bid right now.


I will say that we were once low balled and didn't accept. When the buyer finally came up to our price, we had another bid for the same amount that day (total coincidence huh?) and we took the other buyer. So it can backfire, but I do agree that it's a buyer's market.


What have other houses in the area sold for? The sellers are sure to know this, so it might be worth looking into to see what they are prepared to accept.

Re: How low is too low?

The offer is not a slap in the face. I think people are way, way emotional about buying and selling houses. If you like the house, but think it's only worth $375,000, then make the offer. Be prepared for them to counter (if they're smart) or walk away (if they're too emotional to see an opportunity to bargain, that's their problem).

I wouldn't be prepared for them to accept the offer, but they will probably counter-offer. Just be prepared to walk away if the price goes above what you think the house is worth. In this market, I wouldn't be surprised if you failed to come to an agreement now that you get a call in a few months if the house doesn't sell.

Honestly, the offer isn't offensive -- and I wouldn't be worried about offending the owners in price. If they're offended, they'll say no.

Re: How low is too low?

I think you should offer what you feel the house is worth to YOU.
If someone else comes along & is willing to pay asking that is fine. I know lots of people that "overpaid" for their homes in the hottest part of the market. Just because they were willing to get into bidding wars & pay 30k + over asking DOES NOT make the house worth that to everyone...only them!
Don't get wrapped up in that bull.

The inventory on MLSLI is way back up again....you say lots of houses in this neighborhood go on the market. If they don't counter with a number that works for you or accept you'll bid on a different one. If their house is still on the market with a lower price in a few months & you're still looking, you'll offer again. Its business, not a family or friend relationship-people have to TRY to keep emotions to the side.

My house was listed for 325,000 as a gutted fixer. we bid 250,000 they countered 265,000 & when all was said & done we paid 260,000.
This was in 2004 when people were bidding on houses daily & getting outbid.

GOOD LUCK!

Re: How low is too low?

As another poster pointed out - this is ALL business, and every seller is different. I had two home seller's unwilling to move off their asking price, but then we had one owner who was more than willing to negotiate.

I say - what's the worse that can happen - they say no and you recounter with a slightly higher number - go ahead - you have nothing to lose, and as long as you don't allow emotions to get in the way, you'll find the house of your dreams for the price that you're comfortable paying!

Re: How low is too low?

There was a condo that we almost bought - it was listed for $695 originally, - the first week on the market the guy turned town an offer for $650, after two months it dropped to $675, after 4 months we heard $650 was the right number, but after really loking at what needed to be done we thought it was only worth $600 - the condo sold for $590 - may have reduced after inspection

anyway this market is about timing also - how long they have had it and how long on the market, and when they are closing on a new place - the intentions of a seller - all these things can be answered by a good buyers broker - who makes it worthwhile to use

if the timing is right it may worth it to throw the offer in

Re: How low is too low?

It depends what similar houses in the area are going for. If the house IS fairly priced then they will not like your offer at all. If its overpriced, they still might not like your offer. Its very hard to determine things these days. A lot of sellers have caught up to the market and have been pricing houses fairly but there are still those who have unrealistic expectations.
I say make your offer. The worst that can happen is they say no, and then you can decide to up your offer or walk away.

Re: How low is too low?

Thank you all for your advice. I do love this house and don't want to lose it, but I will wait about a month since they just lowered the price, before I put in my offer. I am prepared to bargain, but I will not pay over 400k. I am just concerned that I will not be able to get this back when I sell it in six years... (yes, we plan on moving in six years or so b/c of the school district, but we want to live here now for family and career reasons) I guess this is a risk we will have to take.

Re: How low is too low?

Message edited 4/3/2007 9:59:05 AM.

Re: How low is too low?

Personally, if you think the school district is not that great, I would go with my low offer. About three months ago, DH and I made a "low" offer on a house and the man basically laughed at us. We refused to budge on our offer because you could literally ski down the backyard if you wanted to, so we would have to put in a retaining wall to make it look the way we wanted.

Don't you know he called 2 weeks ago saying he dropped the price to LOWER than our original bid. We said no thanks at that point.

Stop caring about the seller's feelings. Like someone said above, this is a business decision. Make an offer and if they reject you, they do. Based on the info you are giving about the school district I would not make an offer of 400K. A lot of people buy based off school districts.

Re: How low is too low?

Offer what you can afford and what you think the house is worth.

Message edited 4/3/2007 10:06:43 AM.

Re: How low is too low?

Re: How low is too low?

Don't wait. We put in a bid right after the sellers lowered their price. They might really need to sell the house now.

Re: How low is too low?