Are the Headlines Creating Low Ball Offers?

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Tonight was a sign of times past.  Times when lowball offers were a common occurrence.  Times when we grew to expect the type of offers we hesitated to present.  But this time, I called my home seller without hesitation. 

 

You see, I knew this 5 bedroom, 4.5 bathroom totally remodeled home was not worthy of the offer presented.  My 20 years in business tells me that this caller thought he knew the market.  He didn't have an agent representing him. He had bought "100 properties" on his own and didn't need his own agent.  Fine, I thought. 

 

After returning his call, leaving a voicemail, I repeated what I had told him before.  This home has been on the market for 2 days and my sellers will not accept this low offer.  There are other similar listings priced much higher.

 

Are the headlines creating low ball offers?!  

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Comments (22)

Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I have often been amazed that news reports can so widely differ in their reporting of projected market trends.

I'm shaking my head at the comment left by Endre Barath, Jr.  38% of list price is outrageous.

Jun 28, 2022 12:46 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Jan,

I do feel those who think they know the market and don't need guidance are back out in the marketplace thinking they can nab a home with a low ball offer. Its the sign of the times but doesn't mean they are going to get one!

Jun 28, 2022 03:47 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Interesting to see both your post and Endre's comment. Perhaps people are hearing the market is "changing" and think that means sellers are desperate. They are not.

Jun 28, 2022 04:28 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Jan. Once, I had sophisticated seller who responded to a low ball offer with a counter at twice the asking price. His response was, if we can meet in the middle we have a deal! The buyer did not respond in time. The property went to another at full price. The first guy, was "too late"! Enjoy your day.

Jun 28, 2022 05:18 AM
Jim Paulson

Wayne Martin I love it!  Unfortunately, the only option was to click "like" (no love option to click).

Jul 08, 2022 01:05 PM
John Henry, Florida Architect

Great story!  I feel like doing the same when someone objects to my fees and offers something much lower.  ha

Jul 02, 2022 02:52 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jan, I have had calls from potential buyers also asking if they can now offer much less than list price.  

Jun 28, 2022 06:04 AM
Jim Paulson

Joan Cox I don't see really low offers getting accepted here in Boise, but I have been able to get seller's to pay closing costs on behalf of the buyer again.

Jul 08, 2022 01:08 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Jan... I've not seen that here in Charlotte area, as yet. We are not necessarily seeing huge numbers over asking price, but also not seeing lowball offers.

Jun 28, 2022 06:37 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Jan - there are people, I guess, living in a parallel universe as are many media people.

Jun 28, 2022 07:21 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Jan Green - Scottsdale, AZ, I'm actually working with buyers from another country right now, they've made several low ball offers and all were rejected. Sadly, they told me they read and listen to the news and know the home prices are declining. Forget the fact I'm the real estate professional and they've seen all their low ball offers went above list price.

Jun 28, 2022 12:31 PM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Well I'm seeing our local market increase its inventory but quite a bit this past few weeks+.  There will be 'some' negotiating but low ball offers - HA.  It sounds like a country western song title - "The Low Ballers Are Back In Town"..... 

Jun 28, 2022 02:54 PM
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Years ago I had a Buyer call me directly to show him the house unrepresented, similar to your profile Buyer in the post, he made a low ball offer assuming I would credit him the co-op side of the brokerage fee. I informed him it had nothing to do with him that was a contract between the Sellers and my firm.

Have not seen low ball offers in the recent market, but can sense a shift is happening in certain price ranges and of course the MSM is doing their best to throw cold water on the market.

Jun 29, 2022 03:22 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I hear ya Endre Barath, Jr.!   So frustrating to see that people think the market has changed over night to allow hugely discounted offers!  Good luck with that!  

Yes I know what  you mean Laura Cerrano , but perception is not reality in this case.  An offer I received from someone without an agent offering $75,000 less than list price?  Yikes!  My clients said no.

That is a HUGE discount Myrl Jeffcoat !  Boggles the mind!

Yup - that's exactly it Dorie Dillard Austin TX !

Jun 29, 2022 05:14 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Exactly Kat Palmiotti .  I know my sellers want to sell, but desperate - no! 

That's hilarious Wayne Martin !  I'd loved to have been a fly on the wall for that one!

Everyone thinks the sky is falling overnight Joan Cox !  Buckle your seatbelts!

 

Jun 29, 2022 05:16 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Probably like our area Nina Hollander, Broker , it depends on where it is and what it is!  Scottsdale is one of the highest areas in demand right now, but other areas aren't quite as hot.  And price range plays a big part in it.  A very pricey listing I had hoped to get may hold off, even though their price range is in GREAT demand.  Go figure!

LOL "parallel universe" Grant Schneider - now that's funny! 

Jun 29, 2022 05:18 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Oh wow Beth Atalay !  You must have the patience of a saint!  Good luck!

Thank you for the feature! 

Oh yeah Anna Banana Kruchten CRS, Phoenix Broker - this guy offered $75,000 off list when the house had been on the market 2 days!  Not gonna happen.  AND they wouldn't go below a certain threshold.  Buyer was also unrepresented and when I asked why he didn't have an agent, "I've bought over 2 dozen homes and never used an agent."  Rolling of eye balls on the phone! 

Jun 29, 2022 05:20 PM
Anna Banana Kruchten CRS, Phoenix Broker

Oh yes don't you love those offers and/or calls 🙃

Jun 30, 2022 09:49 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Jan,
Getting our news from the news media isn't as reliable as it used to be, is it? 

Jun 30, 2022 10:07 AM
Jim Paulson

At least the media is admitting that Reality TV is scripted.  It's a start toward honest journalism again. LOL

Jul 08, 2022 01:12 PM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

There is still the "low ball mentality" out there regardless of the market and regardless of the headlines.  I recently had a low ball offer for a vacant land parcel with water meter installed and cleared. The seller had already sold 3 of the total 5 properties.  All sales were within 10% of the list price. Buyer's agents must follow the directions of the buyer in spite of the buyer's agents advice.

Jul 01, 2022 08:36 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Jan  - Kathy Streib wrote post about knew jerk reactions is what this so call "breaking news"  headlines are about.  They are there to get noticed and have minimal credibility.

Jul 02, 2022 07:20 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Jan:

There's certainly been a lot in the media about changing prices, the market in general (yep, that word we love - crashing) and so much more. People are going to believe what they hope for and what works in their favor, and it's just not the reality of our market.

Jeff

Jul 02, 2022 10:40 AM
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

I think the headlines are creating low ball offers in some cases. I also think some sellers are stuck in the past. It is a weird mix of results. 

Jul 04, 2022 06:57 AM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

I am surprised that here in Boise, I am receiving more showings on a $3 million listing than on a $575k listing.  I can only attribute it to the fact the home listed for $575k is more in a traditional family neighborhood near schools which many times sells FHA and the home is just over our FHA limit.  The $3 million market is more cash driven.

Jul 08, 2022 01:14 PM