What would you do?

By
Real Estate Agent with Prudential California Realty

Okay, so I was contacted by this very nice gentleman who gave me a very specific task: find me a great home with between 1600- 2000 square feet, less than 10 years old for a specific amount of money.  He has a large amount to put down and is more than qualified.  So I get to work and find him a two bank owned properties, two years old and 2500 square feet!! And they even come with a pool, new carpet, and fresh paint.  I feel so good about it I can't wait to show him. 

So I show him...he wants to make an offer at almost 20% below asking price.  He now says he can't afford the price he originally told me and wants me to find him a house just like the bank owned for the price he wants.  To top it all he says he has been watching CNN and they say that prices are still coming down. 

It is my opinion that in California the banks are pricing the homes very well.  Sure there is always a little room on the price but 20%? !

What would you do?

Comments (5)

Brian Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Denver Luxury Real Estate
I feel for you. Only 20% less. We have had a couple of investor who wanted to offer 30% less or 50% less even after we told them several times the banks rarely - really RARELY go lower than 95% of their asking price, that is about the going % here in Denver area. We actually had to put a couple low offer in, since the buyer insisted, we showed the buyer the responses from the bank (or actually listing agents) and that put a quick stop on the low offers. Unfortunately some times that doesn't even work. Sorry can't help more. ~Rita
Jan 21, 2008 05:12 PM
LAURA SECOR
Prudential California Realty - Yorba Linda, CA
Thanks Rita. 
Jan 21, 2008 05:16 PM
Jesse & Kathy Clifton
Jesse Clifton & Associates, REALTORS® - Fairbanks, AK
Retired
Strangle them.  Seriously, I would probably sit down and have a true heart to heart talk with him, figure out what he can and wants to afford and force feed him market data. The problem is you never know how bad a lender wants to unload a property, but here 20% would be more than pushing the envelope. 
Jan 21, 2008 06:49 PM
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner
If you feel that they bank might accept it then go ahead and submit it.  If you feel that he is wasting your time then dont spend your energy on him.  Some of those investors think they know everything and because they have some cash, they think they are "in charge of the transaction" and "what they say goes".  They will end up sucking up all of your time and energy and may never end up with anything.  Aloha!
Jan 26, 2008 03:01 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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