TrueGotham Adds Wisdom
A: TrueGotham is an excellent real estate blog run by Douglas Elliman superstar Douglas Heddings. He recently picked up my post on 'Timing A Low-Ball Offer' that adds wisdom to some of the points that I wrote about. While I was writing directly from my experience, which is what most of the articles are about here on UrbanDigs, he offers his advice from what amounts to be a much more successfull and respected career in NYC real estate than mine.
The Downside of the Low Ball
Points he brings out include:
A 'one time' low ball offer, as recommened by Urban Digs, is almost never taken seriously by a seller in my experience. It gives the appearance that the buyer is in the marketplace 'fishing' for a steal and no seller wants to feel like they have been taken advantage of. I would recommend making a lower initial offer and leaving room for negotiation so that the seller has the sense (perhaps falsely) that they aren't being screwed.
When the seller purchased the apartment is not as relevant as their current situation and current market conditions. How much money they are making on the sale need not be a concern for buyers, and sellers often resent the buyer who presents an offer based on 'what the seller paid X number of years ago.' Why and when they are moving is much more relevant.
Open house traffic is not always a good measure of interest. I have taken buyers to open houses in which 50 people attended and no offers were submitted (by the way, often very difficult to get the honest feedback from the seller's broker regarding "interest.") I have also seen open houses where the one person who attended paid the asking price
Valuable feedback from this top producer and his experience in the field! While my experience has been slightly different, it still pays to listen to both sides and decide for yourself which method or strategy you ultimately take when submitting a bid.
Thanks Doug!
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