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We just got low balled on our house--WTF *?&!
Old 07-24-2016, 09:32 AM   #1
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We just got low balled on our house--WTF *?&!



We are selling our home in Florida in a rising real estate market. Many are actually calling a seller's market again with home prices projected to rise 25% in the next 3 years. We built a beautiful home with 12 foot ceilings, gulf access canal lot. Just perfect, with one negative. It is on a busier road, not busy but busier. (parkway but still just a 2 lane road- 1 lane each way). Nonetheless, the house is southern exposure on a corner intersecting canal view etc. I won't mention exactly where I am located. The house has been on the market 36 days. We have had decent interest with about 5-6 showings and it is not "season" in florida. One buyer came back 3 times, another (chinese buyer) came twice and we were told he would make an offer but alas, no offer followed. These Canadian buyers spent a total of 5 hours in our house in 3 showings. Because we have a 10 camera security system viewable anywhere we have internet, of course we "watched the show" on our smart phones.

We obviously want to move, but our condo is being built in another area of florida and won't be ready for close for 1 year.

Our ask price, 699,900

After 2nd showing they asked if we would entertain a 6 month period to close because they have to sell their house.

Obviously, we countered that question with, sure....with 100k down and at risk of loss if closing does not occur as scheduled.

After the 3rd agonizingly long showing AND forcing their realtor to take them on a boat ride up the canal system to our house THEY (after 48 hours) come in with an infuriating offer:

600k sales price, 50k down, AND....GIVE US YOUR OFFICE FURNITURE, THE TV ON THE WALL IN THE OFFICE AND YOUR LANAI FURNITURE!!! and the close date is Jan 11 2017!!!

I saw red.

We immediately countered exactly as follows: (our realtor to their realtor)--->

My sellers are a bit insulted at this offer...we counter with our request for 100k down and 685k sales price. I left their damn request for our furniture alone but it pissed me off.


They have not responded and we are at 48hours since our counter.

Sounds like bottom fishers to me. I am very angry.

What did we do wrong?
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Old 07-24-2016, 09:38 AM   #2
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nothing, I would have countered back at 695K

the future will be better tomorrow
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Old 07-24-2016, 09:46 AM   #3
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You did nothing wrong.

We had a similar experience when we relocated about 15 yrs ago. Some people will lowball and see what happens. In our case, we just ignored the offer.

Sounds like you have time to sell, by your description it is a wonderful place. And the market is on your side. So, just let it pass, the real buyer is on their way.

_B
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Old 07-24-2016, 09:55 AM   #4
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They were probably very iffy anyway, since their dollar is worth $ 0.75 USD.
Many Canadians have been selling their FL properties to capitalize on the exchange rate difference.
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Old 07-24-2016, 09:57 AM   #5
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You did nothing wrong.

We had a similar experience when we relocated about 15 yrs ago. Some people will lowball and see what happens. In our case, we just ignored the offer.

Sounds like you have time to sell, by your description it is a wonderful place. And the market is on your side. So, just let it pass, the real buyer is on their way.

_B
As a "real" buyer, I probably would have started at $600K. heck it's still within 15% of asking.

I'm not sure why sellers get butthurt about those kind of offers. I've sold three properties within the last 5 years with similar opening offers.
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Old 07-24-2016, 10:06 AM   #6
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Originally Posted by Big_Hitter View Post

I'm not sure why sellers get butthurt about those kind of offers. I've sold three properties within the last 5 years with similar opening offers.
+1. It's tough to leave emotion and subjectivity on the sidelines when the home being sold is your own. But there is really no way to truly find out what it will bring in the current market without putting it on the market, advertising it widely and accumulating some offers.

Comparables are good. Appraisals are good. Knowledge of the wider market and economic conditions in general are good. But nothing beats actual offers following wide exposure to potential buyers.

Take a breath. Gather the offers. See what the actual market says it's worth.

OP - IMHO, your instructions to your realtor to communicate that you were insulted by the offer were silly. Never let any of your feelings, positive or negative, out of the bag. If an offer is so far from being acceptable that a counter offer becomes pointless, as it seems to be in this case, just say "no thanks" and move on.
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Old 07-24-2016, 10:15 AM   #7
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on the property we just sold in port angeles, on our first offer I almost...almost countered back higher than my asking price but I didn't :lol:
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Old 07-24-2016, 10:17 AM   #8
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It's just money.

We always move out before we sell so that may alleviate some of the anxiety
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Old 07-24-2016, 10:22 AM   #9
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My realtor friend told me that the low ball offer can be perceived as an insult to the seller, so she is very careful as to how to do it. And she also told me that the house on the market for 7 days could indicate the price being 10K too high for a house up to 400K, or something like that (and this is for a happening housing market.) Having your house on the market that long definitely makes some potential buyers think that you are having a hard time selling your house for the price listed.

If you have a rising housing market and if you are not getting many bites, would it be possible that maybe, just maybe, your house is priced a bit too high? I know it is your dream house, but what I am realizing with houses is, you may for example, spend a lot of money on renovating the kitchen using the top quality materials, but if the design or the color scheme doesn't suit the typical potential buyers' taste, it is like having a pristine, expensive kitchen that they would have to redo, so the plus to you may be a minus to them. Also, a busier road will definitely lower the price point.

Having said all this, good luck to you. All you need is just one buyer who thinks your house is perfect :-)
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Old 07-24-2016, 10:28 AM   #10
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I don't find a 15% off offer to be that offensive. Ya, it's low but I usually start at 10-15%. Sometimes you get lucky. The reality here is we won't know if it was a "low ball" offer until we see how long it takes to sell (i.e incurring carrying costs for you) and what the ultimate sale price is. We were selling a house last year for $375. We got an offer the first day on the market for $325 which seemed too low. we did not counter. 6 months later we were down to $340k and hadn't sold so decided to rent it out. So while we felt the initial offer was low it was solely based on our miscalculating what the home was really worth. Good luck with your sale.
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Old 07-24-2016, 10:28 AM   #11
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Selling a house is a business negotiation, nothing more and nothing less. Don't lose your objectivity and keep emotions out of play. Make a reasonable counter and you will see if the prospective buyers are serious. Everybody wants a deal and everybody thinks their property is worth more than what it is.
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Old 07-24-2016, 10:28 AM   #12
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I don't find a 15% off offer to be that offensive. Ya, it's low but I usually start at 10-15%. Sometimes you get lucky. The reality here is we won't know if it was a "low ball" offer until we see how long it takes to sell (i.e incurring carrying costs for you) and what the ultimate sale price is. We were selling a house last year for $375. We got an offer the first day on the market for $325 which seemed too low. we did not counter. 6 months later we were down to $340k and hadn't sold so decided to rent it out. So while we felt the initial offer was low it was solely based on our miscalculating what the home was really worth. Good luck with your sale.
yep, the best offers are usually the first ones
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Old 07-24-2016, 10:30 AM   #13
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The low offer isn't personal. People just look for an opportunity to get something for less. I have sold several houses and gone through the same thing but always reminded myself that it isn't personal.


The person being yanked around is the agent. They spend time and money advertising, getting comparisons, showing homes, writing up offers, discussing offers with other agents ....all for nothing when the buyer walks away. I'm not sure I could sell real estate and not take stuff personally.
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Old 07-24-2016, 10:31 AM   #14
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My realtor friend told me that the low ball offer can be perceived as an insult to the seller, so she is very careful as to how to do it. And she also told me that the house on the market for 7 days could indicate the price being 10K too high for a house up to 400K, or something like that (and this is for a happening housing market.) Having your house on the market that long definitely makes some potential buyers think that you are having a hard time selling your house for the price listed.

If you have a rising housing market and if you are not getting many bites, would it be possible that maybe, just maybe, your house is priced a bit too high? I know it is your dream house, but what I am realizing with houses is, you may for example, spend a lot of money on renovating the kitchen using the top quality materials, but if the design or the color scheme doesn't suit the typical potential buyers' taste, it is like having a pristine, expensive kitchen that they would have to redo, so the plus to you may be a minus to them. Also, a busier road will definitely lower the price point.

Having said all this, good luck to you. All you need is just one buyer who thinks your house is perfect :-)
+1

If I was truly convinced it was priced correctly, I might offer 5-10K of improvements to change color, etc.
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Old 07-24-2016, 10:36 AM   #15
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They're looking for a deal, as I would. Been watching real Estate closely this year, not in FL. Some hot markets are beginning to slow, inventory is up.
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Old 07-24-2016, 10:39 AM   #16
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I'd blow it off. If it is priced right it will sell, if not you will have to adjust.
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Old 07-24-2016, 10:41 AM   #17
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It's The Free Market. Sellers are always trying to schnorr extra from anyone willing to pay it. Market value is just the average of whatever people are willing to part with anyway. Plus or minus the desperation element. And buyers, especially knowledgeable buyers, are always trying to get everything on the cheap even if they know they are screwing somebody. Don't be mad at them. It's only business.
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Old 07-24-2016, 10:43 AM   #18
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Originally Posted by Quantum Sufficit View Post
I saw red.

We immediately countered exactly as follows: (our realtor to their realtor)--->

My sellers are a bit insulted at this offer[...]
They have not responded and we are at 48hours since our counter.

Sounds like bottom fishers to me. I am very angry.

What did we do wrong?
My goodness, don't take it personally. Some buyers are jerks, and all buyers are looking for a super good deal on the house they want. These buyers may be bottom fishers or may be having trouble getting the financing they need.

If you don't like the offer, then counter (or don't if you think it will get you nowhere). Another buyer will come along, as will more offers, and if your house is priced correctly you will get a better offer. Above all, take a deep breath. It is only a house. There is no reason to get upset.

Selling a house just takes time sometimes.
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Old 07-24-2016, 11:08 AM   #19
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If that is your first offer in 36 days in a sellers' market and you think it is a lowball, something is wrong with your house, whether the price, the location on a "busier" street, etc. Rethink your goal (to sell it and move on with your life or to get top dollar for it) and your strategy (entertain all offers without being offended).

Good luck!
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Old 07-24-2016, 11:16 AM   #20
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After the 3rd agonizingly long showing AND forcing their realtor to take them on a boat ride up the canal system to our house THEY (after 48 hours) come in with an infuriating offer:
I know if I was going to spend near 3/4 Million on a house on a canal, I would certainly want to see where the canal went and what was further up. No biggie - lighten up!
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