I'm currently looking at a property that won't allow us to go inside and inspect until we give an offer. I don't want to give an offer of the full listed price without first inspecting the inside so i suggested throwing a lowball offer just to see if the seller will take it or we can at least negotiate from there. However, my agent is deeply advising against it because the other houses in the area have closed at about the same price and the seller has another offer of the full price already. I guess i'm asking is property pricing negotiable from the get go or is it pretty much, you pay the listed price and negotiate the closing costs (termite inspections, etc.)?
Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes
6y
If the other offer was so great the seller would of took it already. Your agent wants to make an offer that will be accepted so encouraging you to offer full price is the instructions you’re getting.
Investor · Houston · Member since 2019 · 153 posts · 139 votes
6y
The list price is always the opening offer in negotiating the purchase of real estate. Unless you accept their price or go higher your offer is a counter offer.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
6y
It depends on where you are, the market, and the list price vs area. Sounds like you might be in a place where the asking price is the opening bid and you bid it up. We often see this around my area on multi family...that are tenant occupied. We just don't want 40 people touring the house. We want them to look at the cash flow and see if that is something they can work with or not. A lot of these properties are not going to discount repairs....you either buy it or back out. Lots of investors with low inventory in my area. I was uncomfortable with this until about 10-12 years ago when I had a new investor teach me a lesson....he said he only wanted to buy occupied properties....he lived far away and wanted to get them under contract before visiting so he knew what he had. His thought was Rent CMAs are a guess, he had certainty with rent on occupied properties. No vacancy for him to pay for, and no lease fee...so he might be 2=3% ahead on return on the 1st year by buying occupied, or could pay more. Also no make ready. Lots of people are uncomfortable with this, but can be a good strategy.