I've seen something happening lately and wonder if this has been happening since the beginning of time in the world of real estate? I've only got a year and a half of licensure under my belt so I can't rightly say.
I'm talking about offers submitted that are so low they're..well, extremely low. Not verbal offers. I wrote about that before. These are bonafide written offers, signed and everything.
I received an offer for a listing I have. It's listed at $347K and the last comp sold for that exactly. I believe it is priced right. The offer came in at $300K, $500 earnest money, no additional deposit, 100% financing, zero allowance for repairs, and 6% seller contribution (another $18K in addition to the $47K already deducted on the purchase price). I'm making no comments on the strength of this offer. Any real estate professional can sum it up quick.
It is not my job to decide for the seller if an offer is acceptable. It is my legal obligation to present it to him and let him decide that for himself. But I'd be lying if I said I wasn't taken aback by the offer. I mentioned it to an agent in the office after I had discussed it with the seller. She told me she had received a written offer just recently for $120K on a $320K listing. That one floored me!
These are offers on non-distress sales. Public records clearly show which homes are on their way to foreclosure. Have there always been buyers fishing like this? And fishing so seriously that they go all the way with a written offer? Written offers take time and paper. Those poor trees!
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