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A NEW RECORD

By
Real Estate Agent with The Homefinding Center CA BRE #01344132

A new record for this Broker licensed for almost 7 years

In terms commonly heard in the 2008 Beijing Olympic Games.... One of my clients today "SHATTERED THE PREVIOUS RECORD" among all my past clients for a low-ball offer.  The client believes he knows more about real estate than I.  He thinks the price of a listing will always go down more.  If it was listed at 1,000,000 and then 950,000 and then market value 900,000 and then FAR BELOW MARKET at 849,000.  He still believes that based on the pattern of price changes... it's bound to get down to $650,000!  His wisdom... send in an offer at $250,000 below asking price!  Yes, you read it right... $250,000 BELOW.

After completing all the necessary paperwork and collecting supporting documentation (bank statements, credit scores, etc.)... I submit the offer.  6 hours later (as I suspected) I get word from the listing agent that there is SEVERAL OFFERS that have come in that morning due to the price change to below market value.

One last thing... the least expensive closing from the same gated neighborhood.... $750,000.  NEVER has a home there sold for less.

Cameron Novak, Corona Real Estate Agent
Cameron Novak

Corona Real Estate Broker
The Homefinding Center
TM
Corona, California
951-212-7479

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Comments (4)

Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Looks like the definiton of thought when you have a buyers market. The light at the end of the woods is that just a couple of years ago it was a sellers market and like everything it will return

 

Thanks for your post

Tony

Aug 15, 2008 10:27 PM
Suzanne Champion
N.J. Realty - Westerville Ohio - Columbus, OH

I've had people ask me "how do agents LET these lowball offers happen?"

'Cause when we work for a buyer client, they're the boss...it's not up to us!  All we can do is advise our buyers, but they make the call on what the offer will be.

I love how people think we're responsible for anything they don't like in real estate. 

I do counsel my buyers to make offers that will be SUCCESSFUL.  And more often than not, lowballing isn't.  Buyers need to remember that the seller has to AGREE to a price...it's not like eBay where you know what their lowest floor is and they have to take it if that's all they get.  (It's more like eBay with a reserve price, to stick with that analogy.)  Good luck with your buyer!

Aug 16, 2008 12:04 AM
Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate

Buyers have brought into the media hype that the sky is falling.

Low ball offers will not work.  If the seller would accept that low ball offer, then they would have priced the home at that level and sold the home a long time ago.

Respectable offers a bit low may be good starting/negotiating points.

The sky isn't falling.  Prices are down.  Sales are down.  But market value still rules, even if that market value is a bit lower than it was a year ago...

Aug 16, 2008 01:50 AM
Cameron Novak
The Homefinding Center - 1000 Palms, CA
Real Estate Broker since 2008

Tony:  You're right, but it appears we're starting to move away from a strict "buyer's market".  At least in SoCal.

Suzanne:  You're right.  But sometimes I find that if I humor the ridiculous offer while all the while explaining that it won't work and why.... they soon come around because they really DO want a home.

 

Aug 16, 2008 06:15 AM