Is it OK to low-ball?

[invest]

If a house has been on the market for 6 months is it OK to low-ball?
They are asking $249.000 and I was thinking to offer $229.00.
The realtor told us that we may insult the owners and they will not consider our offer. I thoughts that this is a must in negotiating... What do you think?

[Canadian]

Originally Posted by invest

If a house has been on the market for 6 months is it OK to low-ball?
They are asking $249.000 and I was thinking to offer $229.00.
The realtor told us that we may insult the owners and they will not consider our offer. I thoughts that this is a must in negotiating... What do you think?

Sure it is Ok to lowball, especially now when the RE market in Canada is going down. If this house has been on the market for 6 months then there is either something seriously wrong with the house, or the house is not worth $249K. If you like the house and you think there is nothing wrong with it, then don't offer $229K, but instead offer something really low like $180K. Don't expect this to be accepted, but instead look at it as a starting point for negotiation.

As for the realtor bullshit just don't pay any attention to it .

[trent]

Nothing in this life is a gift. If you want a low price you should learn to negotiate. As Canadian pointed out, with the Canadian real estate market going bad, this will be easier than before. If the pompous seller gets offended at your offer, just move on to the next one, until you find one desperate enough to take your offer.

[bullish]

Originally Posted by trent

If the pompous seller gets offended at your offer, just move on to the next one, until you find one desperate enough to take your offer.

Now that's what I call an arrogant and stupid advice. The "desperate person" you will be lowballing most likely has a family to take care of. Have you ever though of that moron?!?!?!?

[Canadian]

How is that a stupid advice? Paying over-inflated price for a property is stupid, not paying the best price you can get.

[trent]

Originally Posted by bullish

Now that's what I call an arrogant and stupid advice. The "desperate person" you will be lowballing most likely has a family to take care of. Have you ever though of that moron?!?!?!?

Just a few months back the "desperate person" you are refering to, was using their house (they couldn't really afford) as ATM and was salivating with greed. Now the market has turned and it's time to pay the piper.

When I buy a property from such a person (at a huge discount), I'll be thinking about how the market punished their greed, and rewarded me for for not buying into the housing bubble.

[invest]

Originally Posted by Canadian

Sure it is Ok to lowball, especially now when the RE market in Canada is going down. If this house has been on the market for 6 months then there is either something seriously wrong with the house, or the house is not worth $249K. If you like the house and you think there is nothing wrong with it, then don't offer $229K, but instead offer something really low like $180K. Don't expect this to be accepted, but instead look at it as a starting point for negotiation.

As for the realtor bullshit just don't pay any attention to it .

Thanks all for your suggestions. One more thing Canadian; if I offer $180K my real estate agent will freak out. Maybe something like $199K is more likely. I know this is part of the bargain and nobody is supposed to be insulted but in the recent years people have this idea that you should always agree with the price and even expect bidding war…

[Steven]

I wouldn't buy just yet, as I expect prices to come down a little more from current levels. However if you really have to buy now, then submit a really low offer, and don't bother too much what your real estate agent or the seller will say.

[Zephyr]

Yes it is. Especially now when the Toronto real estate market is in decline - according to Toronto Real Estate Board the number of sales in Toronto are 25% down: http://forums.canadabanks.net/blog.php?b=4