Quote:
Originally Posted by zarrell
So I'm in the midst of trying to purchase a home and I see lots of people out there seemingly testing the market with ridiculous prices. I came across an intriguing property however in my estimation it is a good 75-100k overpriced. Is it worth it to throw an offer that much under what the list price is? It's only been listed 12 days and had numerous viewings. I suppose the easy answer is no harm in offering whatever and see what happens, but if anyone has run into situations like this I'd be interested to hear your opinion.
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I've bought / sold several properties over the years. I'll be the outlier here and say yes do this - because I've had it work for me a few times.
Townhouse I was looking at was wayyy overpriced.... shooting for the moon. Agent on the other side was a moron and inexperienced. (as is common during a boom). Client was motiveated to sell but the agent convinced her to try and shoot for the moon for a couple weeks to see what came along.
We come along, and put in what we had researched to be a fair market value offer. Their opening ask was so stupidly high no one else had offered. Faced with this, they accepted our offer (this was just at the start of the 06 boom).
I have zero hesitation in putting a fair market value "lowball" - at the end of the day your agent works for you (and gets paid for it) and if they moan about the 20 minutes of paperwork it takes to put an offer in - find a new one pronto.
That said, I've certainly been shut down a few times too by the types mentioned here. In 2010 I ran into a lot of people asking for their 2007 peak pricing - I put in FMV bids that were declined or outright ignored. You quickly get a sense of what type of seller you're dealing with and know when to move on.