Question
What would be an insulting offer on a home after being on the market for 1yr?
I hear that it's a buyers market, but our agent doesn't seem to be the kind to 'fight'. Our agent wants to put in a conservative offer (200,000, home is on market for $207,000) because she says that a very low offer would be insulting and the owners will most likely ignore rather than respond. We are first time home buyers and really have no idea. I thought that the buyers agent was supposed to 'fight' for you and look up comparable homes in the area and put in an offer- but it sounds like they are just pulling out a number based on the asking price instead. The home has been on the market for almost a year and is currently listed at the tax assessed value (I looked it up online). The last time it sold was 12 years ago for around $130,900. Their current asking price is $207,500. In the past year they have only dropped it from $230,000. Based on this information, would it be ridiculous to put in an offer of, say, $185,000 when we the buyer are fully qualified and approved to purchase this home?
5 months ago - 5 answers
Best Answer
Chosen by Asker
Partly the answer depends on how much you want this home,and whether or not there are other offers on it. Also, how fast you can close makes a difference, as the current owners are probably paying around $2,000 a month to carry this house. Your agent is somewhat right. A $200,000 offer is 5% below asking price, and yours is quite a bit below asking price. Keep in mind that the sellers will also pay the real estate commission (about $12,000 in commission) and other closing costs, so $185 minus the other costs might be too low for them to accept the deal, as they will have to come up with cash for the rest. If you are 100% certain you want this home, then put in the $185 with a serious amount of upfront escrow money and an aggressive closing date (no more than 60 days) and they may respond favorably, or give you a counter offer. Just put an expiration date on the offer (give them 72 hours to respond or consider the offer withdrawn).
by Lauren F
5 months ago
Asker's Rating: 
Other Answers
Ask yourself what it will be worth one or two years from now. Prices are still dropping.
by frediwhite@verizon.net- 5 months ago
I'm currently selling my home. I got a ton of offers and a few were what I would considering "insulting" but we still counteroffered to see how serious they were. Offer what you feel comfortable with, remember your agent does have experience but he also only gets paid if he makes the sale. If the house has been on the market a long time I would think they will atleast counteroffer. I think 185k is atleast a good starting point but is a little on the low side so it depends on how motivated the seller is. If you really love the house start at 185, hope you get it for that but be prepared to negotiate a bit.
by Alexa's Mom- 5 months ago
If your offer is too low and really insulting, the seller will not be motivated to counter offer or to deal with you. And I think you're treading those waters, personally. Did you ask your buyers agent to run comps for you? REAL Estate is unique. Location is paramount. We can't say whether the house is an excellent value (which it sounds like) or is over-valued. We can't say how low an offer is ridiculous and insulting. $20,000 is a significant drop in price. They may have it mortgaged at $220,000 and be taking a loss. We don't know!
by chatsplas- 5 months ago
If it has been on the market for a year, then their asking price is probably too high. It would not be unreasonable for you to bid 185. As a matter of fact, I think it makes perfect sense. The bottom line is that your realtor has to put in what you want, not what they think you should bid.
by Paul S- 5 months ago