What should I offer for an oceanfront apt. in Miami Beachthese days?
 

I am planning to say 20% off the asking price. Would that get some interest from the sellers in the million dollar range? I figure many would bite at this level.

Anybody been trying the lowballing tactic lately?

Re: What should I offer for an oceanfront apt. in Miami Beachthese da
 

Find out what you could rent it for and still profit. Offer slightly less than that.

Re: What should I offer for an oceanfront apt. in Miami Beachthese days?
 

[ QUOTE ]
I am planning to say 20% off the asking price. Would that get some interest from the sellers in the million dollar range? I figure many would bite at this level.

Anybody been trying the lowballing tactic lately?

[/ QUOTE ]

First, asking for a 20% discount off of an asking price is, IMO, not a lowball offer. If you are serious about buying, I'd offer about 50% of the FAIR MARKET VALUE (not the asking price). Asking prices are just made up numbers and are completely irrelevant.

Now, if you are going to make a low ball offer you need to justify your offer to the seller. What I'd do is put together lots of data and charts and crap about how terrible the market is. Write up a 2 or 3 page offer justification. Be sure to include proof of funds and if you want the seller to know that you are really serious, offer about $10 or $20k at earnest money.

What I'd probably do is get a general idea of which condos I want, pick the best one and have the SELLERS realtor show me that condo and about 5 others. Be very noncommittal about them. Don't give them any indication of your preference at all.

The next day you call the realtor and say that you want to meet to sign a contract. You make your offer and the realtor will say, "oh, jeez, that sure is low, blah blah blah". Then you say something like, "yeah, you're right. I guess I'll submit offers on the other 4 that we looked at as well". Specify which order you need the offers submitted in. Be sure to include a close in expiration date on your offer.

Out of 5 offers someone will likely nibble. Hopefully you can get the one you want.

Re: What should I offer for an oceanfront apt. in Miami Beachthese days?
 

oh yeah, i forgot that you probably want to include a weasel clause in the contracts.

Re: What should I offer for an oceanfront apt. in Miami Beachthese da
 

Do some rental analysis and don't pay a cap cost less than 7.5%. That area is glutted, more are coming and you want to be able to handle it if rents decline. I would probably price my offer at 8.5%.

Re: What should I offer for an oceanfront apt. in Miami Beachthese da
 

Don't offer nothing for it. We are at the end of a very serious housing bubble and it will probably blow up big time.
If you must, listen to what apex said about 50%. The best thing you can do is wait at least 6-12 months. I promise, you
won't get hurt. Forget about 20%, it is not enough to cover your downside risk.

Re: What should I offer for an oceanfront apt. in Miami Beachthese da
 

[ QUOTE ]
Don't offer nothing for it. We are at the end of a very serious housing bubble and it will probably blow up big time.
If you must, listen to what apex said about 50%. The best thing you can do is wait at least 6-12 months. I promise, you
won't get hurt. Forget about 20%, it is not enough to cover your downside risk.

[/ QUOTE ]

this mentality reminds me of the stock traders during the late 90's; obv the bearish instead of bullish, but same mentality

Re: What should I offer for an oceanfront apt. in Miami Beachthese da
 

Please share with the forum your opinion on the Miami real estate market. I will go with down. Do you have any thoughts you would like to share?

Re: What should I offer for an oceanfront apt. in Miami Beachthese da
 

[ QUOTE ]
Don't offer nothing for it. We are at the end of a very serious housing bubble and it will probably blow up big time.
If you must, listen to what apex said about 50%. The best thing you can do is wait at least 6-12 months. I promise, you
won't get hurt. Forget about 20%, it is not enough to cover your downside risk.

[/ QUOTE ]

I don't see any problem with buying now if you plan to hold the condo long term. As for downside risk, who knows. I don't believe in timing RE markets. If you get the condo for a very good price (i.e., 20% or more under fair market value), you'll probably be insulated from from any potential downside anyway.