Quote:
Originally Posted by bahbahmickey
I disagree. If you aren't in a hurry to find a house,aren't in love with the house and it's been on the market for a bit go ahead and lowball. However, if you really like the house you may not want to low ball too bad.
Remember realtors are incentivized to get you to pay the max.
Lots of bad advice. This is a hot market, and houses sell quickly. Any house that's been on the market for several weeks has something wrong with it, or is in a non-desirable neighborhood.
Just to put this whole commission in perspective. If a realtor is able to get 3% of the sale price as commission, then for every $10,000 in price difference, the realtor company will lose/receive $300. After the agency takes their cut, the buyer's rep will probably end up with $150-$200. That's not a whole lot of money if the house was purchased for $300,000.
If you consistently try to low ball houses, your realtor will just stop working for you. Why should they even try when the opposite is happening in the market? Why would anyone want to come in with an offer that may end up being 30% less than the highest offer?