r/RealEstate • u/ordinarydaysTM • 1d ago
Is 10% less low-balling? First Time Homebuyer
Hi!
I'm looking at a property in southern Georgia. The house is a 3bd 2ba listed for $280K, originally $293K. The previous owners bought it as an investor home in 2024 for $158K. It has been on the market for 93 days.
Now, the area that home is in is close to the city, but the neighborhood is not great. Theres a good bit of neighbors with junk in their yards and we need to redo the entire backyard & add a fence. Also value of the homes around it are $225-250K.
Our realtor is saying we should offer 270K and we cover closing costs... but looking at some reddit posts and reading more about the market I'm thinking it would be wise to offer 10% below at 252K and see how they counter offer if anything.
Any advice is appreciated! TYIA
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u/MattHRaleighRealtor 1d ago
On market for 90 days with comps at $225-$250… start low and see where they are at!
The last few days changed some perspectives. Over leveraged sellers need to make a move…
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u/QuantumTitan512 1d ago
Hi first time home buyer here, what changed these past few days? I am assuming people are going to want to sell now with the economy and stuff that’s going on?
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u/RedditDiedLongAgo 1d ago
Assume every seller just lost 2+ years of retirement savings.
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u/ChangingmynametoJT 1d ago
Also the housing market values are going to be very unstable now.. they could plummet bc of the recession or they could go up with stagflation
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u/Over-Kaleidoscope482 18h ago
It’s always possible that people lost 2 years of savings for retirement. It’s also possible that they may have to wait 1 or 2 years for their retirement to recover and gain to be back on track. The people who are loosing now are those actually drawing from an unbalanced portfolio now or those who are to nervous and to late and are getting out of the market. Just my thoughts
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u/Jenikovista 1d ago
At 90 days on the market, they should counter an offer at 10% under list. Expect to end up somewhere between 5-7% under list.
However sellers are unpredictable and so you never know. Do you really really really want the house? Are you already moving in in your brain, arranging furniture etc.? Then offer 6% under. But if you're looking for the bargain and are willing to walk, you stand a better chance at playing hardball with fewer emotions :).
Just don't let them ghost you. Set a 24 hour deadline and if they don't counter before it's up, rescind the offer so they can't shop it. They may come back yo you later and that's great. Don't be offended if they don't respond, just don't let them use you. You can always wait a week and submit a better offer.
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u/ordinarydaysTM 1d ago
I didn't know we could put a deadline on a counter. I appreciate that note, thank you!
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u/Jenikovista 1d ago
Yes, your offer should expire in 24-48 hours max :). Give them enough time to think about it but not enough time for any fence-sitters to ump in and bid against you.
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u/Effective_Scar_2081 1d ago
I had an offer of 140 on my 3 br home that's listed for 175, I'd say 10 percent is far from low-ball. If you absolutely must have it I'd say you were reasonable.
If it's something that could be fantastic but is meh for now don't bother going too far or too fast. Just wait and see, there are a lot of people out there wanting to pressure you with time constraints and last minute rushed propositions. I've fallen for them myself once or twice and regretted it each time.
Be patient and trust your own opinion, and possibly that of your family. Your realtor doesn't seem entirely on board with you but that could be my own view limited by your view of their anxiety. If they are badgering you to go higher and you don't see a need to I'd be more wary of using them in the future.
Be calm and keep your own goals in mind, just don't let others set your pace while you also don't shut your eyes to possible negotiations. Stubbornness can both help and harm. :)
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u/zoom-zoom21 12h ago
Did you take the offer? Or holding out to get around asking or slightly less than asking.
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u/Effective_Scar_2081 11h ago
Not taking that offer, it's already priced lower than market value. I'd take a lower offer but not that low. Their realtor let us know he'd only been approved for the 140, and was asking for seller assist on close with some other home warranty purchase.
I'd rather wait as it's only been listed for two weeks.
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u/zoom-zoom21 11h ago
Oh yea. I had a 3/1 listed for $185k and got offers at $100k, $150k. Eventually got under contract for a little under asking price, no seller concession. In this uncertainty. I took it and signed it asap.
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u/thewimsey Attorney 1d ago
Not that the term matters, but I don't really think that 10% below is low-balling when the house has been on the market for 90+ days and the offer seems to be consistent with the comps.
I tend to think of an offer that is unreasonably low. Below market price. But which you think the seller will go for because they are in a hurry or desperate or you're offering cash, etc.
Now whether the seller thinks your offer is unreasonably low is a different question.
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u/divulgingwords 1d ago
The global economy is literally crashing right before our eyes. 10% less is straight up generous.
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u/Lanc144 1d ago edited 1d ago
Go lower than 10% off. And your Realitor just wants his commission and he’s out. Doesn’t matter if you get a good price or not. With Trump f-ing the stock market, now way the seller isn’t hurting for cash sooner than later.
Tour it again. With a bright flashlight. Anything that looks new, look for water signs or air movement. Every nock craney and corner. Look for old dust and new dust movement on the floors walls and ceiling . See what they’re hiding. Gotta be Sherlock Holmes. Turn the water on. Look for leaks. Flush toilets. Feel for water leaking. Check stair case patterns in block work for cracking. Look for patch work. Question it all and make notes. Then decide if it’s worth an inspector.
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u/ordinarydaysTM 1d ago
Thank you, good to note about the stock market. We first looked at it last week before the tank. We're touring it again on Monday ... I'll bring a flashlight! :)
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u/Vivid_Mongoose_8964 1d ago
offering less is fine, but you better have a really big deposit to show seriousness. i just told a buyer to f'off as they wanted to put $1K down for a deposit but pay all cash for the property. thats a sign of a problem that'll creep up on closing day. people who want to drop a $1K deposit aren't serious..
20yr RE investor here with many rental props
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u/zoom-zoom21 1d ago
How much were you wanting them to put down? Like 1% of house price?
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u/Specific-Pool-5342 1d ago
That's exactly what I'd ask. 1% non-refundable (less any explicit contingencies per the contract). Fail to close on specified date, contract is cancelled without mutual agreement and deposit is surrendered.
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u/Muhhgainz 1d ago
If your comfortable at $252k then that’s what you should offer. Don’t stretch yourself thin. If comparable properties are selling for less then why pay so much more for this one. We’ve gotten offers 20% lower accepted instantly.
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u/Charlea1776 1d ago
Watch out for flips. Try to see the condition of that property when they bought it. If it was really bad, I will guarantee you they did nothing important correctly, possibly not even to code, and hid their duct tape and glue fixes so a standard inspection probably cannot find them because flippers know to do just that.
The last time flips were good was before the 2008 crash. Since then, I am yet to hear of a happy story 5 years in. Rigged fixes are great until they fail (sarcastic great).
They want top dollar for the least investment.
Avoid those scammers. Also, no matter what they slapped in there, the best comp is 250. So that's the top price. Comps set the price, not what the seller thinks.
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u/Awkward-A_F 22h ago
We just bought a house in Idaho, they wanted 450, we got it for 395, we didn’t pay any realtor fees. Do what feels most comfortable for you. Don’t let anyone tell you, you can offer what you want. especially with it being on market for a little while, it really depends on the motivations of the seller!
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u/Infamous_Hyena_8882 1d ago
Don’t look at Reddit. Don’t look at Zillow. Have your agent put together a market analysis and show you the sales price to list price ratio. You’ll get an idea of how much sellers are getting. Where I’m at, sellers are getting about 96% of their asking price.
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u/Express_Jellyfish_28 1d ago
Yes, I would say 10 percent below is low balling. I am in a very high cost of living market and homes still regular sell above list price.
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u/germdisco Homeowner 1d ago
If you’ve gotta have it, offer asking price. If you only want it at a fair price, make your offer based on comps but be prepared to be turned away with no second chance.
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u/Commercial-Sir-1604 1d ago
I’m in the Georgia market and if you offer that low they tend to not even counter around here.
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u/flyinb11 Agent NC/SC 1d ago
I'd just expect them to reject or counter. I'd start there, but I'd be surprised if they accept that low. As long as you're willing to lose it, go for it.
What does your agent show comps to this home suggest it should be priced at. Just because homes around it are 225-250 doesn't necessarily mean this home isn't worth more, but it could.
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u/BoBoBearDev 1d ago
No. I don't recommend low-balling. Because if you did that, you cheapen your view of the property. If they accepted it, your greed will want it lower. Also when you are getting a so called good deal, you are not doing your job on inspections, because your greed is trying to save money instead of making sure the property is in good condition. And when Murphy's Law happens, you gonna blame it on lack of care on inspections.
Unless you love the location and willing to fix it up later. Walk away.
Buy a house you truly believe that is what you want, try not cheap it out, it is not investment, you gonna live inside.
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u/Chair_luger 1d ago
The worst that can happen is that the seller says "no" and is insulted(unlikely) and will not deal with you again if you decide you want to offer more. The house does not sound like a unique gem so you can likely find a different house.
Be very careful, flippers are notorious for just covering up problems instead of fixing them right and they a can be a real nightmare if not outright dangerous because they did things like improper electric which will cause a fire.