A house on La Costa Beach goes up for sale in Nov. for $17,500,000. The house offers numerous bedrooms on 81 feet of frontage and is an original 1964 beach house in good shape. The house sells 42 days later for $11,300,000! Keep in mind that two blocks up the coast is Carbon Beach where 81 feet of frontage will run almost $20,000,000. Either the listing was drastically overpriced to begin with or someone stepped to the plate and swung with the greatest low ball offer in history.
The rule of thumb in this market is don’t be afraid to write a low offer. You do not know if the sellers must move or just are thinking about it.
To get a low offer accepted you MUST have an agent that is willing do a few things. First, the agent needs to present the offer in person. Faxes are easy to reject. An agent standing in your living room who says that he has buyers that are well qualified and are ready to close speaks volumes. Next, show the owners sale prices that are considerably lower than the original asking price. Lastly, show them the average days on market and let them think about sitting on that adjustable rate mortgage for the next 192 days. One last thing. If your original offer is rejected. Let the clients have a few days to think about the offer. 3 or 4 days later, send a Rejection Of Offer Letter and ask them to sign it making it official that they don’t want to counter. They’ll think twice before signing the rejection letter and may reconsider the offer, especially if that phone hasn’t rang in a few days.
If a buyer can knock $6m off a beach house in Malibu it should give you hope going after that vintage craftsman bungalow in Venice that’s asking $1.9m but you can only afford $1.5m. Heck! Print this out and and use it as ammo to get that deal done!