Submitting an offer for condo

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Fairlife
Posts: 12
Joined: Sat Oct 02, 2021 6:14 pm

Submitting an offer for condo

Post by Fairlife »

Hi all,
When submitting an offer for a condo, does it make sense to provide as much detail as to how I came about the price I'm offering? The condo I'm looking at appears to be about 10% above the fair price I calculated. I compared comps over the same period, # bedrooms, balcony space, and floors, mostly for my own understanding of where the market is at right now.

I also know that not everyone does in depth calculations like this, and in all likelihood nor does the seller care, or agree with my calculations.
Question is, is it a good idea to include all that info in my offer? Or should I simply provide the offer $ and just keep it simple?
QBoy
Posts: 133
Joined: Sun May 05, 2013 7:09 am

Re: Submitting an offer for condo

Post by QBoy »

I would keep it simple. The sellers most likely do not care about your calculations and may be put off by (what will look to them) your trying to justify a low-ball offer.
PaunchyPirate
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Re: Submitting an offer for condo

Post by PaunchyPirate »

Just the offer.
j9j
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Re: Submitting an offer for condo

Post by j9j »

QBoy wrote: Mon Oct 11, 2021 2:47 pm I would keep it simple. The sellers most likely do not care about your calculations and may be put off by (what will look to them) your trying to justify a low-ball offer.
+1. All they will see is the bottom number
adamthesmythe
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Joined: Mon Sep 22, 2014 4:47 pm

Re: Submitting an offer for condo

Post by adamthesmythe »

Offers are usually on a standard form. So just the number. Along with any information that will show that you are very likely to close.

Think about it. Anything you say is basically equivalent to saying "it's a lousy property at this price so this is my low-ball offer."
runner3081
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Re: Submitting an offer for condo

Post by runner3081 »

As a seller, I would be annoyed by that.

Same stunt people try to pull on eBay.
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cockersx3
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Re: Submitting an offer for condo

Post by cockersx3 »

Are you working with a realtor on the offer? I've submitted offers in the past that were less than asking price (sometimes significantly so), but I had good reasons for doing so. In those cases, the only thing "in writing" would be the offer, but my realtor would speak with the seller's realtor when submitting the offer and verbally explain why we thought offering less than asking made sense. Sometimes the sellers would accept my offer and the reasoning, and sometimes they didn't, but I thought it was helpful.
DoubleComma
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Re: Submitting an offer for condo

Post by DoubleComma »

I understand that is largely a sellers market in many areas, that can often change the game for buyers.

I also have never bought a house when there were multiple buyers competing for a property.

What I have done on the last two purchases was made an offer through my realtor with the standard documents. Then verbally I have told my realtor I'm not interested in a prolonged negotiation and please make the seller/seller agent know this is what the property is worth to me. If they disagree, please ask them to counter with what they are willing to sell it for and then its a simple yes or no from me....no additional counter offers from me are forthcoming pre-inspection.

Most recent the seller simply accepted my offer, we closed at that number as I didn't ask for further concessions based on the inspections.

Two purchases ago the seller countered my offer with a number I accepted and then we closed at that number.

I've sold several homes too, I wouldn't have cared why the prospective buyer valued the property at X as I was selling based on what I wanted/needed/expected for the property. I've never had a property I've sold close for less than 96% of the listing, so I would say we have historically priced fairly and accurately.
humblecoder
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Re: Submitting an offer for condo

Post by humblecoder »

Fairlife wrote: Mon Oct 11, 2021 2:44 pm Question is, is it a good idea to include all that info in my offer? Or should I simply provide the offer $ and just keep it simple?
The logic behind your offer means nothing. You can be a rational and logical as you want, but if the seller believes that this is the best offer that they will get, they will accept it. If they believe that they can do better, they will reject it.
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8foot7
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Re: Submitting an offer for condo

Post by 8foot7 »

agree with others that it's a waste of time -- it either is a number that meets the seller's needs or it doesn't; your job isn't to prove to the seller via math how he should be pricing his house

if he comes back with a counter and you feel so inclined, you could then share your calculations, but there's no point in doing so beforehand
Last edited by 8foot7 on Tue Oct 12, 2021 10:14 am, edited 1 time in total.
DiMAn0684
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Joined: Fri Oct 28, 2011 10:27 am

Re: Submitting an offer for condo

Post by DiMAn0684 »

Just the offer.

Last fall I ordered a phone, and it came bundled with a tablet we didn't need. I listed the tablet on the marketplace and got a long message with screenshots from someone showing me how they can get it for less by stacking student discount and coupons, and asking me to discount it down from the price they found. I told them that they found a good deal and suggested they jump on it.
Dottie57
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Re: Submitting an offer for condo

Post by Dottie57 »

8foot7 wrote: Tue Oct 12, 2021 9:56 am agree with others that it's a waste of time -- it either is a number that meets the seller's needs or it doesn't; your job isn't to prove to the seller via math how he should be pricing his house

if he comes back with a counter and you feel so inclined, you could then share your calculations, but there's no point in doing so beforehand
This.
knowledge
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Re: Submitting an offer for condo

Post by knowledge »

No one cares about your rationale, just the bottom line number and if they think the number is solid or not.
abner kravitz
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Re: Submitting an offer for condo

Post by abner kravitz »

knowledge wrote: Tue Oct 12, 2021 3:53 pm No one cares about your rationale, just the bottom line number and if they think the number is solid or not.
+1. Anything you can do to show that you can and will close always helps.
Cognitive_Squeeze
Posts: 189
Joined: Thu Jan 08, 2015 5:36 pm

Re: Submitting an offer for condo

Post by Cognitive_Squeeze »

Fairlife wrote: Mon Oct 11, 2021 2:44 pm Hi all,
When submitting an offer for a condo, does it make sense to provide as much detail as to how I came about the price I'm offering? The condo I'm looking at appears to be about 10% above the fair price I calculated. I compared comps over the same period, # bedrooms, balcony space, and floors, mostly for my own understanding of where the market is at right now.

I also know that not everyone does in depth calculations like this, and in all likelihood nor does the seller care, or agree with my calculations.
Question is, is it a good idea to include all that info in my offer? Or should I simply provide the offer $ and just keep it simple?
It's a tough market, Sure, why not. Try to trigger an emotional connection.

If they have (kids, dogs, etc.), send a family photo. Include a very brief note. " I loved your place, we can see our (kids, future kids, dog, fish, etc...) having a great life there. I am a bit lower than your asking price, but my offer is sincere. Respectfully, xyz."

This may accomplish nothing, as noted above, but we are all triggered by emotions. I had made connections with buyers for my rental units and primary home. With or without agents. Agents are a drag, they disconnect the emotions.
"Check ID" is my actual signature.
rooms222
Posts: 673
Joined: Fri Feb 22, 2013 2:12 pm

Re: Submitting an offer for condo

Post by rooms222 »

In my condo market, the ones priced fairly are selling within 10-15 days, and the ones that are overpriced are sitting for 2-6 months while the owner slowly cuts the price and/or the market rises to them. With so little inventory, there are listings that clearly are asking for the moon (prices substantially higher than has been achieved by any similar condo in the last 15 years).

For example in my building, a record high price in the last 15 years is closing tomorrow (about 135k). Prior sales in the last 2 years were in the 100-110k range. Similar prices were achieved about 20 years ago, but from 2010-15, these condos were selling for about 30-45k.

The condos across the street reliably sell for about 10% less than our units. Although built as condos, they do not have in-unit laundry facilities. The highest sale recently has been for $110k. Someone has been listing a unit for $140k (recently cut to $135k). It is clear that somewhere between $115k and $126k would be a fair price for the unit. They may get $130k if very lucky and the market keeps rising.

I say all that to point out that dealing with the timing of such an offer and the expectations of the seller are key to attempting to get your offer accepted.
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