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Stories from the Sales Frontlines

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Comments

  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    The trouble with making a ridiculous offer on a house (or car) is the fact that people do get insulted and will often assume the "buyer" isn't serious.

    Good point and a good story about the woman offering $2 for a $20 item.

    When we were selling our house (2 houses ago), an offer came in at an "insulting" 25% below asking price. I was going to tell the agent to tell the people offering to get lost.

    I jokingingly said we would come down about 2% from asking price. They then came right up to 4% below ask. So, you never know, shouldn't write anyone off until you really know.

    Afterwards thought, they were nice people, just wanted to try a low price just in case....might as well try a lowball price.

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • andres3andres3 CAPosts: 5,343
    I wouldn't consider 25% below asking price insulting in any manner shape, or form, unless the asking price was really already low (offers coming in fast and quick daily would prove it was low priced).

    If a seller felt insulted, that's their loss to not take an offer seriously.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,929
    We are on house number six now and after selling five houses we have seen all kinds of offers.

    We have always tried to price our houses fairly and according to the market so we have been fairly firm. I think one time it took about six weeks for a house to sell and that was the slowest to sell.

    If we had been offered 25% below our fair listing price I would have countered with full price back at them. THAT would be an insulting offer.
  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    I wouldn't consider 25% below asking price insulting in any manner shape, or form, unless the asking price was really already low

    Asking price was very realistic. 25% below $100,000 isn't too bad. 25% below $500K, gets to be insulting ($375K). I went down to $490K to show I wasn't budging much...he came in at $480 right away, and that was realistic.

    Deal made, even though the first offer almost made me think they weren't serious. Some people like to test, just in case..........

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    If we had been offered 25% below our fair listing price I would have countered with full price back at them. THAT would be an insulting offer.

    That was my first thought too! But, I thought , it is a long shot, but, at least if I come down a little bit, it shows I am leaving the door open. Telling the possible buyer to get lost would probably close things down right there. Hard to get anything going after that.

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • graphicguygraphicguy SW OhioPosts: 7,535
    Old adage still holds true, a house, a car, and yes even appliances are worth what someone else is willing to pay.
  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    a house, a car, and yes even appliances are worth what someone else is willing to pay.

    True, but, I have also seen people lose a good house, like maybe a $300K house over $10K to make a point. If the house was a good one that the people would have loved living in......then $10K over 20 or 30 years is not a big deal. The house will usually go up more than that in value anyway.

    Similarly, not buying a car someone may keep for 5 years because they want to save $200 might not be the wisest decision. $200 over 5 years is $40 a year. Some people can try to be too cheap!

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • graphicguygraphicguy SW OhioPosts: 7,535
    driver....just like buying a car, people fall in love with houses. Nothing wrong with that. It's not a matter of say, a $10K delta between the asking price and what your budget can support. It's more a matter of a year or so down the road when the basement leaks, or the water heater blows, or the roof leaks, etc. All that love goes right out the window (as does the $10K you paid that you didn't have to).

    I have a business colleague in CA who was all hot to trot on a condo in downtown San Jose. It was quaint. Had all the "hipness" that goes along with living in the Bay Area, while also living in an upscale 'burb.

    This was somewhere around 2006-7. She fell in love with it. Made an offer at list on the spot (because the real estate agent told her the owners would be insulted by anything less than asking price). It was 800 sq ft that she paid north of $400K for (no, that's not a type).

    That love lasted until the first few payments were made. Then, the financial reality of living in what amounts to be a smallish apartment for an astronomical payment.

    We all know what happened in '08. She's now underwater with no way out for another decade, at least. She now hates her place, with no real way to get out from underneath it.

    Same with cars. And, I've made bad deals in the past. A long time ago, I told a story here about buying a Nissan Z car, which I was in love with, from someone I knew. Needless to say, that "love" wears off quickly, and becomes a burden. If you overpay, it will linger for awhile, too.
  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    Since we've been talking about refrigerators, I'll throw in my two cents. When we purchased this house last June, we noticed that it came with a Kitchen
    Aid industrial sized refrigerator made into the wall with cabinet covers. All of the appliances here are hidden inside cabinets---never had that design before. At any rate, it's a monster and , for our first Christmas ever, the refrigerator easily held all of the left overs from dinner.

    I hadn't given any thought as to how much it must have cost, but was shocked when it was revealed to me. We had the gas counter top stove switched out for an electric one---wife hates cooking with gas. When the appliance guy came to install the new stove, he noticed the refrigerator behind the cabinet doors. He stated that we had better hope that the refrigerator lasted many, many years. When I asked him why, he said that those models cost around $8,000. I didn't believe it, though I said nothing. After he left, I did some research. They actually do cost between $7,000 and $8,000. I nearly flipped. He was right. I really do hope that the refrigerator holds out for many, many years!

    Richard
  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    Why do you want to leave South Florida? I thought that everyone with a gray hair wanted to move to Florida.

    Richard
  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    "Have our agent counter at full price."

    Just like cars, you have to do your homeowrk. I knew that the owner's wife was waiting for her $6 million divorce settlement. The house was part of the deal. I also knew that the house had been on the market for 18 months. I also knew that the owner (age 66) was being pressured by his future wife (age 36) to move on with the divorce settlement. She was wanting construction to begin on their new 7,000 sq. fit. house. This poor guy was being pushed and pulled in every direction. I also knew that a recent offer had fallen through because the prospective buyer couldn't get the financing that he needed. I knew that I had an edge here. It helps moving back home because you can find out all of the dirt. :D :shades:

    Richard
  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    Never tell a prospect to get lost. You can always wait until you are insulted a second time, and then tell them to get lost. :P

    Richard
  • jayriderjayrider Posts: 3,447
    It's very important to clean the coils with a brush yearly. It really affects performance and longevity. Yours are probably on the bottom. Lots of dust and dirt build-up. Get a fridge brush and get down on the floor and get to it or have a repair man or spry friend do the job. I speak from experience on this issue.
  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    Thanks so much for that tip. I'm as old as dirt, but I can do this job.

    Richard
  • bwiabwia Boston Posts: 1,296
    edited January 2013
    If you overpay, it will linger for awhile, too.

    Not necessarily. In 1993 I made the sweetest deal of my life. One day I was jogging by and saw a "for sale" sign on what appeared to be a brand new home, but it turned out be a two-year old house. I called the number and was invited to see the property as it was a private sale.

    I fell in love with the house and made what I thought to be a fair offer. To make a long story short that offer turned out to be above asking price. Later that evening I got a call from the seller saying that they had put an ad in the Sunday paper and they felt obligated to show the property.

    That very Sunday night I got a call back from husband saying that they had accepted my offer, but since his wife was an attorney, they wanted to let me know that my offer was $5,000 over asking price.

    No problem I said until it came time for bank financing. Since this was in the middle of a housing recession in Massachusetts nobody was buying, much less to pay over asking price. In the end, the appraisal came in at barely $1,000 above purchase price. The bank was reluctant to do the financing but eventually it capitulated.

    My purchase was the boost the local market was waiting for. Home prices started to climb and today my house worth over three times what I paid for it. That's what I call a sweet deal.
  • robr2robr2 BostonPosts: 8,036
    We had the gas counter top stove switched out for an electric one---wife hates cooking with gas.

    Really?? It's usually the opposite.

    Having grown up with electric stoves, I was leery of a gas one. But it's so much easier to cook on - instant heat, simple to control temp, et al.
  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    Needless to say, that "love" wears off quickly, and becomes a burden. If you overpay, it will linger for awhile, too.

    I would agree, overpaying is never fun...but, it is even worse when you don't like what you bought.

    I don't feel I have overpaid for any houses, except the very first one I bought....and that one was a lemon that wouldn't have been a good buy at any price. But it did teach me to be smarter in the future.

    I have probably overpaid for some of my cars over the years, but they were all pretty good so I don't care...in the big scheme of things, it doesn't really matter. It might matter if I go broke and I can't afford one last bottle of $7 wine or something.

    Regarding your friend, there are a few reasons why her decision to buy was a bad one so, yes, she definitely overpaid. She bought on emotion, not considering if the apartment will suit her down the road. She spent more than she could afford believing prices will always rise.

    If you buy a house that really suits you, and you buy it to live in, not as an investment or to make money from it, you should be OK. Somethings you just don't know...if you will have bad neighbors, if they are going to take away your lawn to build a highway, etc. When we bought our first house we really didn't know what features we wanted and needed....I bought it because the model (which they spent about $100K on to make it look really good) looked great and the price and terms made it possible to buy. It cost me a lot more to dump that house than if I had bought a better more suitable house in the future......but, I sure learned a lot, and so will your friend.

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • sandman_6472sandman_6472 Coral Springs, FLPosts: 2,810
    Well this prematurely gray haired is way past ready to move on. Tired of hurricanes, the intense summer heat which is more like 9 months worth, the crowds, the backwards state government...I could go on! After living here for well over 40 years, a new place is definitely called for. Something totally out of the box and retiree friendly, a.k.a. a cheaper place to live with things to do for folks on a fixed income. Due to my spinal issues, I'm home most of the time though the wife is pushing me to find something part time. Luckily, our bills are covered by my government pension. Time will tell though as not many will hire a 58 year old guy who walks with a cane! Would like a nice friendly downtown area with great views and year round weather where a/c is not needed.

    I know this is asking a lot but I know it's out there. Always the eterrnal optimist! :)

    The Sandman :) :sick: :shades:

    2015 Audi A3 (wife)/2015 Golf SE (me)/2009 Nissan Versa SL Hatch (daughter #1)/2008 Hyundai Accent GLS (daughter #2)

  • tommister2tommister2 Mechanicsville, VAPosts: 150
    Would like a nice friendly downtown area with great views and year round weather where a/c is not needed.

    Sign me up too! Where is this place?
    1994 Jeep Wrangler, 1997 Jeep Wrangler, 2011 Toyota Camry, 2012 Honda Pilot, 2013 Toyota Tundra, 2014 Mustang GT
  • bwiabwia Boston Posts: 1,296
    Speaking of cutting good deals, for those business owners and executives out there, does this story sound familiar? Read and comment

    Five Warning Signs That You’ve Cut a Bad Deal

    According to CFO Magazine, “Finance execs are always being told that their company has gotten the best price with the best terms. But how can you be sure? If you spot any of these five warning signs, chances are good that the deal isn’t.” Read the full article at :
    http://www3.cfo.com/article/2013/1/growth-strategies_vendor-negotiation-discount- s-price-volume-renewals?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%- 3A+cfo%2Fdaily_briefing+%28Latest+Articles+from+CFO.com%29&utm_content=My+Yahoo
  • Kirstie_HKirstie_H Posts: 10,913
    Portions of my family, including my aunt & uncle who are also on a very fixed income, moved to Edenton, NC. Might be a bit close to hurricane territory for you, though they have never been hit hard. They find a TON to do there, and it's quite retiree-friendly. It was named one of the best small towns last year.
    http://www.visitedenton.com/

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  • stickguystickguy Posts: 15,640
    thanks. *I was about to join the hit parade. In a couple years when my youngest hits college, I am more than ready to downsize (mostly my ridiculous tax bill) and get the heck out of NJ. And I am very fond of NC.

    For a year, when I was little, my grandparents moved from Vermont to Hendersonville. Beautiful litle town in the NW part of the state IIRC.

    2015 Hyundai Sonata 2.4i Limited Tech (mine), 2013 Acura RDX (wife's) and 2007 Volvo S40 (daughters college car)

  • Kirstie_HKirstie_H Posts: 10,913
    I like the area because you're within driving distance to some nice weekend getaways. Go south, and you can visit the humidity in Myrtle Beach or Charleston. North, you're in the DC area. West, you've got mountains. I will say the 4" snowfall average holds quite a bit of appeal to us too. I do like a change of seasons, but I don't like the extremes!

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  • michaellnomichaellno Posts: 4,300
    You always want what you don't have.

    We've run into lots of folks here in Colorado who are visiting from Texas or Florida. They love the dry weather and cooler temps.

    My wife, OTOH, wants to go somewhere that has more humidity. The dry air (summer and winter) ruins her skin and she believes that the moisture found in the SE will keep her skin soft and supple without the need of spending $$$'s on product.

    We'll see - she gets her MEd next May or June and it's quite possible she'll be looking at jobs in the SE.
  • robr2robr2 BostonPosts: 8,036
    My wife, OTOH, wants to go somewhere that has more humidity. The dry air (summer and winter) ruins her skin and she believes that the moisture found in the SE will keep her skin soft and supple without the need of spending $$$'s on product.

    But she'll wind up spending more on hair spray and anti-perspirant....
  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    edited January 2013
    She was wanting construction to begin on their new 7,000 sq. fit. house. This poor guy was being pushed and pulled in every direction.

    I am not sure I would call him a "poor guy" yet. I suppose the 36 year old girlfriend will turn him into a "poor guy" pretty quickly though.

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 12,797
    Home prices started to climb and today my house worth over three times what I paid for it.

    Perfect example. If the house was the right one for you the $5000 you paid extra will mean nothing in the big scheme of things.

    The house has increased in value, you have loved living in it, and you will never be sorry you should have tried to get $5000 off.

    Much better than going through life losing sleep over the $5000 you may have saved.

    2015 Mercedes-Benz E400 , 2013 Audi A4, 2013 VW Passat

  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    As you know, we loved Colorado on our visit there summer before last. Part of the joy was not being in a humid climate. While I can understand your wife's view, you might tell her that many of us suffer skin ailments due to the high humidity. Are you ready for this? My skin ailments are so bad that my dermatologist once suggested Arizona or Colorado. I guess that it is hard to have exactly what you want.

    Though we have always lived in North Carolina, I do have to say that it is a wonderful state. It sounds as if I'm bragging, but it really is great. We have the mountains, the beaches, and the charm of everything in between. I can't really think of a bad place to live in this state. It's not perfect by any means, but based on our travels, it's the best place for us. Personally, I love Colorado, Wyoming, and New Mexico. Still, I realize that you would have to live there to really know if it was what you wanted.

    Stickguy and Host: Edenton and Hendersonville (on opposite ends of the state) are both great communities. For the mountains, I love the towns of Waynesville (near Asheville) and West Jefferson (near Boone and Blowing Rock). They both have done urban renewal in their down town areas---quaint shops, restaurants, theaters, etc. Home owners have preserved the local neighborhoods---though real estate is a little high. Edenton near the coast is both historic and charming. Many towns in that area fit that description.

    Regardless of where you go in North Carolina, you can't make much of an error. There are so many nice places. My favorite cities are Greensboro, Raleigh, and Wilmington. Now that we have returned home, we're only an hour from Raleigh or Wilmington. Both places make nice day trips to soak up the culture or the sun.

    Richard
  • sterlingdogsterlingdog North CarolinaPosts: 6,983
    "...that offer turned out to be above asking price."

    Just wondering. Did you not ask the price of the house before you made the offer?

    Richard
  • cdnpinheadcdnpinhead Forest Lakes, AZPosts: 3,311
    I knew that I had an edge here. It helps moving back home because you can find out all of the dirt.

    Knowledge is power, every time, without fail.
This discussion has been closed.