As the economy continues the way it has been going, and the housing market remains sluggish at best, we will be seeing more and more lowball offers and more potential buyers hoping to get a “good deal.” However, while some situations may be “desperate,” many of our sellers in the Lake Wallenpaupack region of Pike and Wayne County are not desperate, and many are in the position to wait for their price, if they have to.
Below is a fictitious response to a real offer on one of my properties:
Mr. & Mrs. Buyer, I am very pleased that you have picked my client’s home out of all the other choices available in Wayne and Pike County. It truly is a nice piece of property.
However, after speaking with my seller, they’ve asked me to tell you that we just can’t accept an offer that is more than $100,000 below asking price. Just can’t do it…this home is not listed at a grossly inflated price. The sellers are 
certainly willing to negotiate, but not like this.
I know the market is not the best right now, the economy is, well…it is what it is. But my clients aren’t that desperate.
They do want to sell, but not at any cost.
The housing market here in Wayne and Pike County is considerably slower than it was last year – all of the real estate offices in the Poconos have seen their sales volume go down. Some buyers see this as an opportunity to “lowball.”
But, there are lowball offers, and there are lowball offers. Wanting a good price is one thing…trying to get it for significantly less than it’s worth is another.
Sellers ARE willing to negotiate. Many sellers in northeastern PA may be more flexible now than they were in the past. But that doesn’t mean that buyers should expect to get homes for pennies on the dollar.
Here are a few tips for buyers:
- Research the market before making an offer. Ask your agent for recent sold comparables to help guage the value of the home you are going to buy against other recently sold properties.
- Check the tax records and look for the sale history. Chances are, unless there is a serious defect in the home, the seller probably isn’t going to sell his home for less than he paid for it. Of course there is always that possibility, but except for special circumstances, this is unlikely.
- Only look at houses you can seriously afford to buy. Don’t get your heart set on something that is waaaay out of your price range, with the hopes of making the deal of the century. If you only have $150,000 to spend, then don’t look at homes that are nearly twice that price.
Filed under: Home Buyers, Real Estate Market | Tagged: buying a home, housing market, lowball offer, Real Estate Market, wayne & pike county real estate info
Hi Karen – While I agree with you that 95% of the time buyers are just wasting time & effort putting ridiculously lowball offers in on homes…there’s still that chance that a seller might be desperate enough to take it…at least in my market here in Hernando County, Florida, anyway…I’ve seen homes listed at $700,000 sell for $500,000…that means someone had to have the guts to make that type of offer (and to know that it’s probably not going to amount to anything aside from ticking off the seller)…
Granted the house was overpriced…but not by anywhere near $200,000…but because it was overpriced by $50,000 it sat and sat and sat and sat and then when that offer DID come in…it was the only one in over a year…it was like a cracker to a starving person….it was like gold.
This lesson speaks to the Seller’s as well as to the buyers…price your home appropriately to ensure that you aren’t that starving person getting excited about a cracker!
Joshua, thanks so much for the comment! You make a good point, and I always encourage my buyers to make an offer – and I tell them that I will certainly present it.
There have been cases of homes being grossly overpriced selling for a lot less than it was listed for. A nearby home started out at $399,000 and I nearly choked, as I would have listed it at about $225,000. Big surprise, it sold after over a year on the market for $220,000. BUT it was WAY overpriced to begin with.
This is why I suggest researching the comps and knowing what is a fair price for the market. There is of course that chance that the seller just wants to get “out” and will take a low offer…but buyers need to understand that they may not get it.