When offering on a property for sale, just how low can you offer without being insulting? I've heard of people getting properties that were listed at $400,000 for $150,000. I'm guessing this is not the norm, but is it normally acceptable to lowball offers?
- Thread starter 2thebeach
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How low to offer?
Offer what you think its worth, why worry about being insulting?? I have been traveling to the island for 19 years and swear I see the same for sale signs in front of the same houses. Some of these people living in DR are delusional and wont budge on price, so look for what you like.
Real Estate
The Real Estate agents create this delusional market existing only in the colorful magazines and in the sellers heads. The strategy is simple, higer the price, biger commission. The real market value depends always on the economy. Look at the today's world economy and you have the answer.
The Real Estate agents create this delusional market existing only in the colorful magazines and in the sellers heads. The strategy is simple, higer the price, biger commission. The real market value depends always on the economy. Look at the today's world economy and you have the answer.
There really is two separate but connected markets. Foreigners can see value and comparisons based on international awareness. they will pay what they think it is worth.
The other market is local - my experience is that locals will decide on the price and not budge. IF they say it is work 100,000 then they will wait a year, 2years or 5years until finally someone gives them the 100,000 and they will be RIGHT. Much poorer due to opportunity costs but none the less right. don't even bother trying to explain this concept it will get you nowhere.....
The other market is local - my experience is that locals will decide on the price and not budge. IF they say it is work 100,000 then they will wait a year, 2years or 5years until finally someone gives them the 100,000 and they will be RIGHT. Much poorer due to opportunity costs but none the less right. don't even bother trying to explain this concept it will get you nowhere.....
LOL good point. For me, unless you really know what you are getting into then be wary! Do your homework, find someone to trust based on good strong recommendations..........
Good buys are available, great buys are also available. Just know what you are getting into and why.
And yes sometimes it is just better to rent..........
Good buys are available, great buys are also available. Just know what you are getting into and why.
And yes sometimes it is just better to rent..........
Beware of those passing themselves as legitimate. Especially an agent that owns a gas station just outside of Sousua. There all nice an friendly up front, but they don't tell you that their shoddy lawyers will take a long time to get your tittle. Also beaware that some of these owners have not paid their condo fees. Best to rent and feel out the property and talk to people who own.
Real Estate Offer
Your example is not the norm. If the property is being offered through a reputable real estate company than it is most likely priced competitively which means realistically in the marketplace. If it is being sold by the owner than he could set the price anywhere, however than does not mean it is worth that price. In that case you need to look at other properties in the area to determine if the price set by the owner is realistic. When you make an offer, you do not want to "leave any money on the table" which means having made an offer which could have been lower and accepted by the owner. Why give him more than he will accept. It is your money. A good rule of thumb is to make an offer of at least 10-15% below the asking price. If the property has been on the market for a long time you could go to 20%. Currently it is a buyers market. Go for it.
S
Your example is not the norm. If the property is being offered through a reputable real estate company than it is most likely priced competitively which means realistically in the marketplace. If it is being sold by the owner than he could set the price anywhere, however than does not mean it is worth that price. In that case you need to look at other properties in the area to determine if the price set by the owner is realistic. When you make an offer, you do not want to "leave any money on the table" which means having made an offer which could have been lower and accepted by the owner. Why give him more than he will accept. It is your money. A good rule of thumb is to make an offer of at least 10-15% below the asking price. If the property has been on the market for a long time you could go to 20%. Currently it is a buyers market. Go for it.
S
Due Diligence
Actually this is something that your attorney should take care of. If you have a good attorney, they will know title status, outstanding debts, etc. on the property before you involve your money. Due diligence in it's most basic form. On the North Coast, Dr. Brea at Guzman's office is the gold standard of attorneys in my opinion.
Actually this is something that your attorney should take care of. If you have a good attorney, they will know title status, outstanding debts, etc. on the property before you involve your money. Due diligence in it's most basic form. On the North Coast, Dr. Brea at Guzman's office is the gold standard of attorneys in my opinion.
Currently, the cost of capital @ 9% is higher than what it will cost you to rent. You're better of renting at the moment.
One thing to consider: Is it more insulting to a seller to be offered a too-low price for a property, or is it more insulting to YOU, the buyer, to be asked to pay a price way too much for a property? Obviously asking 400K for a property that sold for 150K is an insult to the prospective purchasers. Remember... the seller ASKED for 400K and then ACCEPTED 150K. What does that tell you??? Maybe that he thought someone would be stupid enough to pay 400K? Quite an insult if you ask me!
There is only one true value for any property at any particular point in time. It is called "market value", and is defined as the intersection of the price the buyer is willing to pay and the price the owner is willing to sell.
There is only one true value for any property at any particular point in time. It is called "market value", and is defined as the intersection of the price the buyer is willing to pay and the price the owner is willing to sell.