Low Ball Offers...Not Right Now

I'm working with a newer couple that I've shown a few properties too. They haven't quite found anything that has turned them on enough to write an offer in one of our fair Valencia neighborhoods! But, they have been getting some schooling on our current Santa Clarita Valley market and why writing a 'low-ball' offer isn't likely to get the home of their choosing.

An associate of mine is working with an investor. Has written over 100 offers. All low, of course, they are an investor and has to get it for way below market value to make sense. I believe they have had one accepted, okay, maybe two. Short-sales too. Let's see what happens. The odds are not in their favor.

With less than 700 homes for sale in all of SCV, there isn't a lot of room for low-ball offers....on a good, well-priced, listing. Twice as many are going under contract as are coming on the market.

I went to show a home yesterday. It had been on for less that 24 hours. 6 agent cards were already there. My clients asked about the comps. I told them they were pretty close to right on. They said you would write at list? I said, if you want the home...yes, I would recommend that. They weren't happy with my answer I could tell. But, right now, that's the way it is.

Multiple offers, over list price, at list price, right around list price. The seller wants the most they can possibly get, regardless of the type of sale. SS, REO, Traditional. They all want the most money. Wouldn't you?

Keep in mind you do have an appraisal contingency, but even sometimes that doesn't save you. I wrote an offer for a client that the seller accepted our offer, out of several, only because we were willing to waive the appraisal contingency.....and pay more than the most recent closed model-match home.

So, be wary if you want to write low-ball offers in the current market. Don't be too disappointed if yours doesn't get accepted......