I've found three homes in Pasadena Maryland I really like and am prepared to make an offer for. I want to start with a very aggressive offer. I feel since I have the advantage of 3 homes to choose from, starting with a lowball offer would be best. I'm just not sure how low I can go. Below is some background info on each home. Would you guys mind giving me your guesses/estimate on a starting lowball offer for each?
First home is a short sale. The home owner moved away and bought a new home, couldn’t afford the payments on both. The list price is currently 299,000. An offer of 305,000 with 10K closing was accepted but the buyer backed out after he was told it would take 4 months to close. House is priced right, from my research I feel the house is worth around 330K. Been on the market 101 days.
Second home owner wants to upgrade. Have had the home for 12 years and have had two children and are ready to upgrade to a larger home. The list price is 329K (reduced from 339K). I inquired about this home around a month ago and asked for disclosure information. The seller called my agent several times to asked if I was interested and then verbally extended an offer of 325K (this was when the house was at 339K). From my research I feel the house is overpriced and its true value is closer to the 265-275K range. Been on the market 87 days. Paid 154K for home.
Third home seller moved away for job relocation. The list price for the home is 315K. From my research I have the home value around 285K. Been on the market 137 days.

Thanks,

Without even reading your entire post I would say make an offer. 1 of 3 things will happen.

1. The seller will accept.
2. The seller will reject.
3. The seller will counter.

You may offend the seller with a low offer (who cares). Don't be offended if the seller refuses to play with you and rejects, reoffer a serious offer or move on to the next.

I understand that, I'm asking that if I want to go in with an aggressive offer, what would be a good range for the situations I described.

What does your agent suggest? Use your local expert.

You need to work with a qualified Realtor that can guide you through this process to assure you the best deal.

Regardless of how much you offer, the Devil is always in the Details. How much of the Offer will be your money and how much is borrowed? CASH is easy to understand. Flesh out your Offer so that there are few unknowns.

A Financing Contingency doesn't just mean delays; it also means that there are other Parties involved besides just you and the Seller.

I also agree with everything the other Posters had to say. Good Luck !

Without being familiar with the local market, anything someone tells you on this forum would be worth less than a hill of beans; it would merely be a guess that might be right, might be close, or might be waaaay off.

You need a local expert.

1. Four months to close on a short sale is normal. In many cases it will take longer. Many times in a declining market the short sale price you have under contract is no longer a deal by the time you close months and month later. In a short sale forget the seller list price as bank acceptance means everything.You can make a really low offer and it's up to the bank whether to accept.

2."Second home owner wants to upgrade." Generally this is a weak motivation and the sellers needs the proceeds from their sale to buy the move up home making your low-ball offer not appealing to them. Many times people STAY and take the property off the market.

3.Job relocation- may or may not be motivated. Company relo package might pay for property for awhile and make them list at a certain price etc.


Why not go after bank foreclosures??

You can submit low offer you never know............

I think you are missing the most important info....what are the recent sale prices? An offer should be based on recent sales and the market info, declining, stable or increasing market? How much active inventory is out there? I am in Virginia and inventory has declined so much that buyers are bidding over list prices! Get yourself a good agent, oh wait-you have an agent? Have you asked your agent all these questions? Are you satisfied with their answers? If not satisfied then you should tell them and move on to another agent.

I like doing my research and making an offer that is my highest and best offer. I do enough homework to know exactly what my number is and if the seller accepts, I have a deal. Since I purchase properties for investment, it's all about the math to me and I usually don't get involved emotionally with any particular property.

Recently I had the listing agent ask me if I would up my offer. I told him that my offer is my only offer. The seller's real estate attorney then sent me an email and asked me if the agent told me the the bank outright rejected my offer. I responded back that I wasn't aware that they had rejected my offer but in any case that was my final offer and if they won't take it that's fine. The next day they ratified the contract with my offer!

I knew I gave a fair offer and I think they were just trying to see if I would give more.

Asset managers almost always counter the first offer as most of the time it is not their "walk away price"

In your case it was and you got lucky they accepted as most times they would walk. It just depends on time on the market,which bank owns it,and the condition of the property and whether it can qualify for a loan or needs all cash.

Are you working with an agent on this? If not you really need someone who is educated in your local real estate market to guide you through this process. Sounds like you're gonna need a patient Realtor since you have 3 homes you're interested in.