Would you be insulted?

Question

So there's this mess of a house in Denver and here's the description of it:

."AS IS" 3 BEDROOMS, BATH NEEDS WORK AND KITCHEN IS OPEN FOR YOU TO FINISH THE WAY YOU WANT, IT DOES HAVE NEW SUB FLOORING*THIS HOME IS CLOSE TO PARKS AND IS A DIAMOND IN THE ROUGH*HOME HAS DBL WINDOWS* VINYL SIDING*GARDEN AREA***LOT LARGE ENOUGH TO ADD GARAGE***SELLER WILL NOT ACCEPT LOW BALL INVESTOR CONTRACTS, ONLY SERIOUS BUYERS***INVENTORY IS EXTREMELY LOW FOR A HOME OF THIS SIZE & PRICE RANGE. PUT IN SOME SWEAT EQUITY AND THIS WILL BE A GREAT HOME. THIS HOME IS PRICED ACCORDINGLY FOR ALL ITS BLEMISHES. CALL REALTOR FOR MORE INFORMATION IF YOU HAVE ANY QUESTIONS.

This house is 66 days on the market, which - unless it has massive structural issues or is actually literally under water - is kind of unheard of in the Denver market right now in this price range.

I don't know that I'm really insulted by this as much as I am amused.  The concept that an investor isn't serious kinda makes me laugh.  But I'm thinking that the reason why this house is sitting is because of the way the ad is written.

Thoughts?

Matthew Schroeder · Answer

It looks like that property has been on the market for more than 66 Days!  A cursory look shows that it has been active (under another MLS #) since at least November 2014 (i.e. about 6 months).  During that period of time, it has been 'under contract' at least 4 times!  Something is up either with the seller or the property.

Make an offer which is reasonable to you & see - the worst the seller could say is "no".

Given that it has fallen out of contract 4 times, go into it with your eyes wide open!

Steve Perkins · Answer

I wouldn't be insulted. I'd offer what I'm willing to pay, and if the seller thinks it's low-ball, that's his/her prerogative. What I WOULD assume is that this seller probably has an inflated idea of what his/her property is really worth, and is most likely looking to take advantage of the seller's market here right now.

Given that this has been on the market for 66 days in THIS market, (s)he's probably asking too much, but who knows? If (s)he's patient enough someone will bite.

Given that this has been on the market for 66 days in THIS market, (s)he's probably asking too much, but who knows?  If (s)he's patient enough someone will bite.

Micki M. · Answer

66 days on market says it all.  You call them lowball all day long but if the property doesn't sell in this market, you're overpriced.  if they've got the patience to wait and figure that out, that's their perogative.  It makes me laugh when I see stuff like that.  Your job is to sell the property, not make it hard to sell.

Travis Sperr · Answer

I would reach out to the listing agent and see if they would submit my low ball investor contract and double end the deal.

Zlatan Omeragic · Answer

Depending on who the seller is, you may be able to try and educate him, and break down the formula behind your offer. Many sellers just dont have a clue about real estate, and just need some education. It always helps to have a notepad and calculator so you are able to put real numbers in front of the seller. That is your job as the investor.

On the other hand you may have someone who's head is up their rear, and they are not open to any sort of education or discussion.

But, at least put a feeler out there and see what's up - there is only one way to find out!

Richard C. · Answer

They are probably just sick of wholesalers calling themselves investors, and peppering every listing with 50% offers.

Bill S. · Answer

Some agents have the idea that they work for the seller. If the seller wants too much they will list it and let the market hammer the seller down on price. I tried that once when I was a new agent and found the process terribly unfulfilling.

Sad thing in this market, it will probably rise up to the sellers price in a year or so and they will be all proud how they held out for "their price".

Talk to their agent. Sometimes they actually have an agent that has a brain and can fill you in on the story. My guess is that you aren't the first one to consider a reasonable offer though but you might be the successful one. Never know unless you try. Likelihood of success is low so you have to weigh the worth of your time.

Linda Weygant · Answer

thanks @Matthew Schroeder for the additional insight.  Maybe I'll look into it.  I keep skimming over it, but if I go into this without emotion (I usually do, but I get frustrated with what I think are illogical people), maybe I could work this out.

Jim Viens · Answer

Another one in the area: Retail sale. Clean and somewhat updated but needs some cosmetics. Listed for $87,500. Been on the market close to 120 days with no price drops.

Same neighborhood: fresh reno from a rehabber. Everything new and clean listed for $90,000. Which would you choose?

Jennifer T. · Answer

My favorites are the ads where the seller insists on a "cash only" deal, because they need to sell quickly, but their asking is either at market or only slightly below that  And then the ad sits there for a few months.  When the irony, is they probably would have already had offers and closed on the house if they hadn't cut out a huge swath of the buyers by insisting on cash only.

Maybe it's just my area, but I see poorly written, detrimental ads all the time for real estate.  There was one recently with a headline like, "Best Deal in Town!"  Only a few sentences description, where one of the sentences read it's a "bargain price for the area".  Yet, no price is mentioned anywhere in the ad or in the title, lmao.

Would you be insulted?

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