Quote:
Originally Posted by Kavvy
I have considered this. But with the current market uncertainty, you would be crazy not to low ball your offer. I don't want to make my Realtor send an offer in which in their view will just be dismissed.
No one thinks the market will rise, but a great deal of economists think it will fall by 15-20%, it makes no sense to send any offer in that isn't a low ball.
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having a lowball work is about as likely as winning the lottery. If someone was willing to accept 240k for a condo listed at 280k or 300k, they would have it listed at 249k to get it gone asap. People are always willing to negotiate a small bit from their ask, but very few are going to even entertain lowballs. The state of the market currently is that if people don't get the high prices they're looking for, they will delist. Very very few are even bothering with price reductions because very few really need to sell. That's just the reality of todays market.
Another factor is there are many people just like Polak waiting to jump on a good deal. That guarantees prices won't drop. Prices will drop when buyers leave the market completely, not when you have tons of buyers and investors just waiting to scoop up deals. Think about it. If you have a good deal hit the market (which is rare) and 1000 buyers are looking at the exact same place because it's a good deal, what are the odds you are going to scoop it up for a bargain? In this market people need to face reality. In the same way buyers are stepping back, sellers are also stepping back. That is why you see sales plummet and prices staying the same with little movement to the downside.
I guarantee you that we might have 5-10 years of very little or no growth in price appreciation relative to inflation, but we will not see the big correction people are expecting. Polak will still be here in 5 years waiting for this pullback and in the meantime have wasted 80k-100k in rent.