Making a Offer

[tamitrail]

First, if I was selling something, I would reject that letter and offer. Second, I thought the OP said they were going to make offers one at a time.

[TristansMommy]

Originally Posted by themaster

I plan on making offers that our lowball like on several pieces of property before I settle down and buy a house (that is essentially a lot for about the same price I'm offering) 1/2 to 1/4 the listed price..

This lot in question was 10k sqf and was listed at 50k on our local market for 6 months likely with 0 offers and little interest based on the local market.. I got the realtor for it all the way out to my home to make a offer of 20k on it.. after I mentioned my offer, the realtor said "well, I don't think they'll take that" after which I decided I guess we were done..

The question here is if I make all these lowball offers (it's only about 5-6) is every single realtor going to tell me that.. and am I just supposed perform the offer anyway to see if the other party is interested?

I realize significantly that those selling lots seem to have some kind of long term investment philosophy, maybe don't care about market factors and think a person is fine with (here in my region) paying 50k for a lot and 20-25k for tap fee's.. where one can buy a house here for about 50k with tap fee's..

While sellers need to get real on their askign price.. the buyers also need to get real on their offers. Your offer is only "lowballing" if the asking price is in line with what it should be.

You have to remember something.. no one wants to think of their home as a bargain basement item, and if you are looking to pay pennies on the dollar for a home, then don't make an offer to a homeowner.. make one to a bank who owns a foreclosed piece of property.

Lets put it this way.. you end up buying the home,you put your work into it and build memories in that house and then you put it on the market for a price and someone like you comes along and basically offers 50% of your asking price (this again, assuming taht these prices are in line).

And if you keep low balling houses.. you bet every Realtor will tell you the same thing..

Everyone wants market value for their home, no one wants to give it away.. Yes.. homeowners need to get real.. but some buyers are taking it to extremes thinking they can basically steal a home..

ANd..btw.. a bank will take an offer that is usuall 90% of the appraised value.. they don't want to get fleeced either!

[themaster]

I'm looking to a buy a lot.. I compared it to prices of homes.. because while they may not realize it or not.. If I did get a decent 10,000 sqf lot/home for $50-60k possible in this market with tap fee's paid.. it would cost the same as the lots that have been sitting not sold for up to 10-40 years..

Basically I'm saying local lots (which are few) cost as much as some homes..

Most of the lots I'd be making offers on our listed at $50k or so (couple at $80k maybe those would really be a waste of time) I'd be offering $20k as with tap fee's the total cost of the lot = $40-45k and in some area's $50k

[Ynot]

Originally Posted by themaster

I'm looking to a buy a lot.. I compared it to prices of homes.. because while they may not realize it or not.. If I did get a decent 10,000 sqf lot/home for $50-60k possible in this market with tap fee's paid.. it would cost the same as the lots that have been sitting not sold for up to 10-40 years..

Basically I'm saying local lots (which are few) cost as much as some homes..

Most of the lots I'd be making offers on our listed at $50k or so (couple at $80k maybe those would really be a waste of time) I'd be offering $20k as with tap fee's the total cost of the lot = $40-45k and in some area's $50k

I'm not trying to be mean here, but I don't think English is your native language, so I'm trying to understand what you are asking. Therefore, if I understand you correctly, you are attempting to buy a vacant lot--some of which costs as much or more than a lot with a home on it, and these lots have been on the market for a long time??? Comparing homes on lots with vacant lots is like comparing apples and oranges. In my experience, and that's not saying too much, land or lots do not drop in value like homes, especially older and outdated homes, might--and those homes sell lower because of the amount of money it will take to update/repair. This, of course, depends on the local market and availability.

Also, lot/land owners can usually afford to "sit" on their property until it does sell at the price they want, unless the owner is looking for some quick cash; most land/lot purchases are done for investment purposes, or by those thinking they will build on the lot in the future. A cash buy is usually what is needed to purchase vacant land, as most banks will not lend on this type of purchase, though I'm sure there are exceptions.

You can low-ball on a home, especially if it needs lots of work or is in a less-desirable area, and you may walk away with a deal. Low-balling on a vacant land may not get you a deal, of course, and will depend on the seller's motivation--that is if you don't make them too angry with a low-ball offer.