It doesn't ring any bells for me, but that doens't mean I don't know exactly where you're talking about and just don't realize that's what it's called. 

Holy guacamole...

We got it.

Erin, found this information on this site about buying a house or property in a buyers market which we are in right now. Thought it may help you and others. I like the ideas that it gave. The wed site is named "The art of making a lowball offer on a house." and the web site is http://www.fatwallet.com/t/52/814971/?ffv=0


One section covers about making the offer.

QuoteYour First Offer is Your Best Offer

This is the most counter-intuitive part of buying in a buyers market. Ordinarily sellers, or more accurately the seller's realtor, try to create a sense of urgency to buy the house. They want you to think other people are looking, there is going to be a bidding war, you need to get your offer in today, etc. Remember, in a buyer's market these ploys are all lies. You are the only buyer, and you can take as long as you want to buy the house. Your task in negotiating is to create a sense of urgency and panic in the seller. This is why you make your first offer your best offer.

Start with a bid at least 10% below asking price; however, it can be less if the most you are willing to pay is less. Lower your bid as follows:

***If you are actively bidding on the property, make your offers expire in 5 days. If you are still interested in the property resubmit a fractionally-lower offer after 7 days (make them sweat for 2 days.) Don't make is so much lower as to lose consideration, but make it enough lower that the seller gets the message that they need to come to your price before it gets any lower.

***If the seller makes a counter offer, retract your offer and resubmit a lower one. Works the same as the time decay offer above. After you have lowered your offer a few times, the seller may panic and take your offer before it goes any lower. This is what you are after.

***Lower your offer $500 each time you speak with the seller's realtor. Every time they communicate with you, they will pressure you to buy. Lower your bid each time they speak with you to send a message that their pressure is not working, and it is, in fact, hurting their client.

***Lower your offer $2,000 if the realtor uses one of the standard lies I mentioned above.
If the realtor tells you there is another bidder on the property, immediately withdraw your offer and tell them to call you if it falls out of escrow with the other buyer. Since this statement from the realtor is almost certainly a lie, it will cause them to have to explain to their client why the only buyer around has pulled their offer.

***If the realtor tells you there is another bidder on the property, immediately withdraw your offer and tell them to call you if it falls out of escrow with the other buyer. Since this statement from the realtor is almost certainly a lie, it will cause them to have to explain to their client why the only buyer around has pulled their offer.

Don't Close the Gap

When the seller starts to counter-offer, it is very tempting to agree to their price to close the deal, particularly if they are below your original offer. Don't do it. In a buyer's market, the seller will come to you. You have the power. However, if they are below your original offer, and if you really, really want the house, you may raise your offer one time, but do not get closer than 1% to their counter-offer. The selling broker makes a 3% commission, and the realtor you have been dealing with probably makes 1.5%. By getting to within 1% of the seller's counter-offer, the realtor can choose to give up part of their commission to make the deal. Since they are desperate as well, you should go ahead and squeeze them. A 1/2% commission is better than no commission.

Quote


Mark

Quote from: Erin on March 12, 2008, 02:17:53 PM
Holy guacamole...

We got it.

Congratulations!

Way to GO!!    Now the fun begins........

Mark

Great Erin.  Can you tell us more?

Quote from: Erin on March 12, 2008, 02:17:53 PM
We got it.

Woo Hoo!!!!

QuoteGreat Erin.  Can you tell us more?

Uh...  Now it's time to figure out what kind of a house we're gonna build? 
What would you like to know, glenn? 
(They took our last offer, btw, of $400/25% min. royalties)

So, when are you starting your house?

1.  Finish paperwork/closing/financing stuff, etc.
2.  Find water!
3.  Bring in power.
4.  Dig the basement. 


The sooner we get the ball rolling on everything, the better!   

That's it-- just wondering how the deal went on the offer.

Erin congrats on the land.  Planning, planning and more planning will make the build as painless both financially and emotionally. "I love it when a good plan comes together".  I guess that is my biggest downfall in building is the planning.  My mind knows what I want to do but fails to communicate with my wallet.

Aren't all Countryplans members part of the "A" Team, John. 

Congratulations Erin. You made a good deal. I encourage you to live better by building small. On to the fun of building.

How's it going Erin?  Curious as to what's going on in the process?

Quote from: Erin on March 14, 2008, 02:25:25 PM
1.  Finish paperwork/closing/financing stuff, etc.
2.  Find water!
3.  Bring in power.
4.  Dig the basement. 
The sooner we get the ball rolling on everything, the better!   

We're still stuck at number one, HT.    Financing is all taken care of, but we're in the midst of the paperwork, still.  The sellers have had it for a couple of weeks now!  Apparently, she doesn't live with him anymore.  Hence the sale, I'm guessing...  Anyway, I was warned that there might be delays because of this very thing.  Where it has to mail to both of them, and then back to us, and then to bank.

What a pain in the neck, especially when you all are anxious to get the ball rolling on making it home!  Hope they get everything back to you soon.   The closing on our first house took forever, and we weren't sure it was actually going to go through until the day it finally did... about three days before we were to close, the seller was arrested nearby for driving without a valid license, showing false identification, being in violation on his visa to be in the US (he was Mexican), and not having insurance or a valid plate on his car.  We were scared to death that we weren't going to get the house and we'd be homeless (the closing was set for December 21 and we had to be out of the other place by Dec. 31.)  He signed over power of attorney to his realtor so she signed everything for him at the closing... still, it was pretty tense.  Wish you the best, and soon!

We own it! 
Closed yesterday.   

This weekend we're going to restring the fence on the east side, up against the county road and hang a gate with a padlock.  (It looks like Grand Central passes through our pasture about twice a day!)

Way cool!! G/L on the gate... there's probably a bunch of folks who consider passage their right. I know... I once fenced off a route that horse riders had made their shortcut and they were mighty pi$$ed, but came around when confronted by 4 strands of barbed.

That's great Erin.  Keep us up to date, please.

awesome news Erin, your going to have a great weekend.  any ideas on what your going to build out there?

So, how's it going so far Erin?  Waiting to hear an update!!

Last week we went and got a load (and then some!) of concrete blocks. 
Now we just need a hole in the ground...

We're going to get lumber and insulation this weekend so hopefully we'll be ready to go shortly! 
When we did the blocks, we borrowed a buddy's double axle trailer, dualled on all four wheels and rated for 22,000lbs.  But we were already overloaded with the blocks so had to put off the rest of our list. 


We would have made one heck of an ad. for Ford PowerStrokes, though. 
"PowerStroke Diesel.  Driven by stupid people." 

Yep pretty tough trucks.  I hauled 2 cubes of 8" on my truck.  A little light on the steering axel though.  Thank goodness no one stopped short in front of me. Really not much on the truck with that trailer though.

Not a lot of weight, no. Not until we tried to stop that is!