Buying Maine real estate for less money than the number scribbled on the price tag hanging from it.In thirty years of listing, marketing, selling Maine real estate this question comes up often. Many times it is asked in a way to suggest isn't there a formula written somewhere in a book explaining offers are always blank amount? As if the real estate buyer and property seller are reading from the same manuscript, rule statutes, applying the same logic and bound by the same axioms. It does not work that way.
And like people, property situations and their price tags are all different. The seller may owe more than the property is worth and is upside down hoping someone rescues him. He may not consider a short sale negotiating process with a mortgage holder if there is one. And is bent on getting a chunk of change from this real estate sale. Do you want it that bad to fix his real estate wagon by peeling off more large denomination bills to make that seller's dream come true? Is the property worth it to you..forget what the listed price is.
To help the property owner hit a real estate home run by delivering a big fat easy to hit pitch. Is that your game plan? If a real estate buyer right off the bat has a little talk with himself, herself to remember you should never get so attached, fixated on a property that money is no object, much of the emotional upheaval if the seller bursts their bubble to "steal" the property can lessen or be eliminated. Usually the buyer does not HAVE to buy. And if you remember that in many cases the seller is not obligated to sell for less. He may have wanted more than the listed price and emphatically told his real estate broker in a harsh tone as he reluctantly went along with it saying that figure is firm, set in concrete. No ifs, ands or buts about it.
Don't even bring me anything less to consider or off with your head. He may be luke warm on selling at all too.And you may be looking at a specific performance case to make, force him sell if he decides"no thanks" because of all your interest and admiration in his castle, his dump, land, farm, lake front, whatever being peddled... Regardless if you pay the listed price or not.
In Maine with 30, 40, 50 thousand dollar residential properties common, not much room to drop 20 thousand dollars like the case of a 1.4 million dollar price property in the city, on the west coast. Many times the real estate price is the price. No haggling. You pay what the real estate tag says or move along, waiting for a seller with more motivation, pressure or a clock ticking to let a similar property go for less. Or you come back to the same property months, years later when the seller's health, job, family, marital situation makes him a whole different cat to deal with across the real estate negotiating table.
What is the least a real estate seller, owner will take for the place depends on the time period it has been on market, their personal situation or desire to move. Knowing the dynamics of why the seller has that red, white and blue real estate sign on his lawn and those ads, blog posts, videos running in rotation is key to getting inside his head to figure out what YOU might do if you were that seller.
And remember just because you decide to bite the bullet and pay the listed price, that is no guarantee you are the new, soon to be owner. The contigencies in your contract, the time period to close, size of your deposit and your history with the owner can play in to the real estate script on how this movie ends.
If you the real estate buyer go in saying offer 20% of what the seller wants to find a bottom line, a common meeting crowd, you may burn all your bridges in one fell swoop. The seller is insulted, takes it personal that you are the last person he would sell to with your laundry list of all the things wrong with the property. You know, the letter you wrote to accompany the skinny "where's the beef" offer that outlines how lucky the owner is that you came along to take the damaged tainted property no one will ever want off his hands. For a big discount. And remember when toying with offers on real estate you really want, are excited about. You can pay more than the listed price to assure you get it. But that is a real estate multiple offer situation that is another subject for a future real estate blog post here on Active Rain.