Gee this will take some thinking.
So you’re talking unethical, fraud, collusion, and illegal … but not an offence or of offence.
Nope, still don’t get it.
I think we may have some sort of word usage or language issue here, because I’m really confused. When I used the word “offend” in post #12, I meant it as in “insult.” It was in response to the idea (the one that real estate agents push so often) that an offer too low will insult the seller, and they won’t deal with you again at all.
I’m pretty much on board with the rest of your strategy, btw. Apart from bringing in a third party, you’re describing the standard strategy for real estate investors dealing with a motivated seller.
If you feel $250K is a fair price, and you can afford it, offer it. (Don’t forget to consider closing costs.)
If they counter, don’t forget you can counter, too. And you can counter with a LOWER price than your original, if you wish! If the market is tough for sellers in that area right now, that sends a message that you are serious, but won’t go higher, and are likely to withdraw or go even lower if they won’t quit this negotiating.
Think about it. And I wouldn’t call $250K a lowball offer for a $295K asking price, but the “only” 70 days on the market doesn’t work in your favor unless the seller is desperate.
Disclaimer: I’m a Realtor in Wisconsin, but I am not your agent. I am only giving an opinion based on the facts presented.
[off-topic]Is the house down by you or up by Amy? Haven’t seen you online in eons – email me![/off-topic]
What happens if they accept the friend’s offer? You do realize that the friend now has a legally binding contract obligating him to purchase the property at the terms agreed upon? I hope your friend is willing to accept that liability.
I’m not saying it wouldn’t work (and your friend could turn around and sell it to you and you both benefit). I’m just saying that an accepted contract is a legally enforceable document that should not be discarded lightly.
We had done our research on the house owner and house history and along with our lowball offer (75%), we tried to tailor a letter to pull at their heartstrings. “We are a young family with little kids in a little house and would love to be close to that park out your back gate. I am also a beginning research professor at <local university= their alma mater> yadda yadda. We know our offer is low, but we can only get approved for $x and when we sell our other house $y”. Both agents worked to make up the difference (all fixes from the inspection were paid by them). They almost didn’t push back at all and our agent said they were crying as they were more excited by who was buying than the offer.
So I completely agree that penultima thule’s point about giving them your rationale goes a long way.
Update from the OP:
The house disappeared from zillow a day or two after I posted here. I called the realtor & found that there’s an offer, but they’re continuing to show, until contingencies are met. Said the seller might appreciate having a backup offer. Doesn’t bode well for dropping 20%, but we may go see it soon nonetheless. The owner didn’t move out of state as I had thought. They just moved to a bigger place up the hill. But it is a 2d home for them as I had presumed.
Thanks for all your ideas.
If you want to know how long it’s been vacant, your local utility company can tell you how much the last years bills have been and you’ll be able to tell by the drop in charges.
At least they will in California. I called the electric company to ask how much the bills had been, and they told me what they were before and then how it dropped off.
Typically the buyer has a period during which they can elect to not buy the place and forfeit the earnest money.
Also, there is absolutely no reason they would accept the friend’s offer–it is lower than the lowballer’s offer.
QED
A rare instance in real estate of a WIN - WIN - WIN result.
Depends on state law and contract wording. The earnest money is there to insure that the buyer won’t change his mind, but if he does, a typical compromise is to forfeit the amount and cancel the offer.
All other things (contingencies) being equal, sure. But I’ve been involved in deals where the first offer was rejected – the seller thought it was too low – then when a 2nd one came in lower, the seller realized he blew it, should have taken the first in a declining market, and takes what he can get before it goes lower.