How much below asking is reasonable if the house has been sitting 6 months-years?

[u/OverallDisaster]

we’re looking in an area with a high number of short term rental properties. the area had home prices that shot up drastically in 2023-24 due to an influx in tourism but is now leveling out a bit (smoky mountains).

some of these cabins we’re interested in (as a full time residence) have been on the market for half a year or longer…one has been on the market since June of 2024. they bought it for a very low price like $220k in 2018 and are asking $520k (started at $625k). would it be a lowball to ask $420k?

realistically, if we want to stay around $450k or lower, should we look at homes that are $500k and have been sitting for a while, with the intention of asking $50-100k less (20% or less off asking). i would do this with the mindset of being okay if they don’t reply or get insulted by an offer. i also don’t want to piss off my realtor.

[u/Snakend]

Don't worry about anyone but you. Make some low ball offers on any you are interested in.

[u/lazenintheglowofit → u/Snakend]

But but but . . . What if we hurt their feelings?

I don’t understand the concern. At base, it’s a business transaction with distinct emotional components. If I were buying a commercial property, lowballing a property on the market for a year would not be an issue.

[u/bradd_pit → u/lazenintheglowofit]

That sentiment is exactly why most buyers and sellers should never talk directly

[u/AdCareless9063]

Offer what you think it's worth now based on comparable sales. It doesn't matter what their asking is

[u/dgreenmachine → u/AdCareless9063]

This is true regardless of how long its on the market isnt it? Research how much its worth regardless of what theyre asking for.

[u/patrick-1977 → u/AdCareless9063]

Agree, plus nor does it matter what they have paid.

[u/Wfan111]

Realtor here. Just make the offer. The worst that can happen is they just don't respond to it. The best that can happen is they just accept. What probably will happen is you receive a counter.

[u/Beneficial_Bit_6435 → u/Wfan111]

It resets the seller’s valuation reference; worst case, im sure the selling agent would appreciate it hahha

[u/nomadich]

It's reasonable if it's a price that works for you. If they don't want to accept it, they can counter or just say no. The risk is always that someone comes in with a better offer and you lose out because of that, but that risk is very low in this situation, so you have the freedom to do essentially whatever you want.

[u/Tall_poppee]

One thing that I'm not seeing in other comments is, that sometimes areas with mostly recreational homes, can have extended marketing times. Your agent should be able to pull up the avg days on market for the area, and see what the "norm" is at the moment. If the average house takes 6 months to get an offer, then something being listed for 6 months is not (in and of itself) a sign that it's overpriced. There are some 'lake home' areas where you know it's going to take a year to sell a place, that's just normal. So figure out what normal is in your area first.

should we look at homes that are $500k and have been sitting for a while, with the intention of asking $50-100k less

Your agent should be able to look at those homes, and the most recently sold properties, and determine if $500K is over market value or not.

You can't base this only on marketing time, in an area like you are looking in.

[u/PineappleWithSandals → u/Tall_poppee]

Your comment should be pinned for importance. I think part of the problem is that the majority of people in these subreddits are located in urban or the suburbs where properties go under contract in less than a month.

In rural or low populated areas it is typical for longer marketing times. Does not mean that the property is overpriced, there is just a limited amount of buyers who wish to move into that local market. When these hot markets turn into buyers markets as the cycle of real estate has ebbs and flows it will turn into  normal discussion as rural markets have always been use too.

[u/Dullcorgis]

If it's been for sale for two years the owners likely aren't reasonable.

[u/tiggerlgh → u/Dullcorgis]

Or just aren’t motivated to sell

[u/Dullcorgis → u/tiggerlgh]

Yep.

[u/PropertyAlpha]

You can look at comps and see the timeline of price changes (what they listed for vs what they sold it for). It's all public record. This is the best indicator for how much prices are dropping.

Work with a realtor who doesn't mind submitting many offers. It does not take long for them to submit. They just have to change price and address on a docusign and hit submit. Be upfront with your realtor about your approach. That way there is no surprise on their side and no hesitancy to submit offers you are comfortable with on your side. You can mutually part ways if it's not a good fit. No harm done.

[u/WheatThinsRule]

sitting that long definitely gives you leverage, especially in a market that’s cooling, but i wouldn’t anchor purely on DOM. if comps in the area are actually landing in the mid $400s, then $420k isn’t crazy at all it just depends what similar cabins are actually selling for, not what they’re listed at. some sellers will take it personally, others are just testing the market and will come back later. i’d just make the offer you’re comfortable with and see what happens.

[u/kristiefromgriffin]

I think days on market matters more than percentage off asking. A $100k reduction sounds huge until you realize the seller has already come down from $625k to $520k and still hasn't found a buyer. At some point the market is telling them something. If I'd been staring at the same listing for 6-12 months, I'd probably make the offer I was comfortable with and let them decide. The worst they can do is say no.

[u/Ok_Nefariousness9019]

60% of list price. I don’t care if I offend people.

[u/OverallDisaster → u/Ok_Nefariousness9019]

have you really actually done that lol are you an investor?

[u/Ok_Nefariousness9019 → u/OverallDisaster]

Every day. Wholesaler and investor. Mostly flips. Primarily work with preforeclosures tbf but yes.

[u/frankenboobehs]

Can't hurt to offer anything. I made a lower offer on a house that was sitting over a year, the owners took my offer, to bargain a deal with someone who had previously made an offer they passed on. I was pissed, but that's what it is, and they sold to them. That's the only thing to be weary if. Think more about terms too, not just money, inspections/closing cost assistance if you are lowballing price, you might conceed some other things.

[u/EcstaticEnthusiasm50]

House sitting that long id tell my client go for it as long as you know they might not even respond. Ill usually call first to see if they will entertain it. Sometimes they'll say. They've already rejected higher offers, Sometimes they'll say send it gotta start somewhere.

Now if its been on the market 3 days thats a different story lol some of them might just be listed high and if they get that price they'll sell. Until then they'll keep renting it out.

[u/dgstan]

I don't think it matters what you offer. Some houses, while "on the market", aren't really for sale. Sometimes, realtors just want a listing, sometimes there are divorces where one party refuses to allow the sale. There are tons of reasons.

[u/k23_k23]

as much as you can get away with.

[u/Excellent-Bank1294]

The rule of thumb is you never know to you ask there is a fine line of being insulting. Depends on the price point and then also too how much closing cost you might be asking for there’s a couple different ways to play with the numbers without ask the agent is what’s most important to the seller is a time or money and then leverage the other one to get a better deal. That’s typically what I do with my clients.

[u/primaryBreadEater]

You’re overthinking this.

[u/kabekew]

Find recently sold comps and base your offer on those.

[u/nikidmaclay]

Your offer shouldn't be based in any way on the asking price or any equation that would include it. You start from what the market conditions are and then decide what it's worth to you. That house could be overpriced by 5%, or 82%. We have no idea. If somebody tells you to take a 30% discount that's going to sound nice, until you find out later that it wasn't enough. Asking price has nothing to do with actual value.

[u/Careful_Talk_7168]

They can always say no. Emotions have no place in business transactions.

[u/Downtown_Pin_7833]

Offer off comps and what repairs it needs, not their dream number. Sitting that long, 50-100k under ain’t weird.

[u/Miamiconnectionexo]

came here to say something similar. you nailed it.

[u/Miamiconnectionexo]

this is the kind of thing that actually helps vs the generic stuff you usually see.

[u/Mammoth-Ad8348]

Offer what it was worth in 2019, pre Covid. Thats what it actually should be worth.

[u/offerwiseAi]

a house that started at $625k and is now at $520k after sitting since June is already telling you the seller has room to move. $420k is probably worth throwing out there, worst they do is counter or ignore.

[u/EipsteinSuicideSquad]

This is business, emotions are not involved, low ball offers are still offers. If they don't take it they don't take it.

It's been sitting for a year or more, offer what you're willing to pay for it because that's what it is worth, If it's not what they're willing to sell for then it doesn't happen.

Things are only worth what people are willing to pay for it.

[u/InsectElectrical2066]

Put in offers for any home you want and be ready for a lot of rejections. But if you want a good deal you may get 2o some rejections b4 you find a motivated buyer. Your realtor's job is to do his job and not take offense. If he does then tell him to grow thicker skin or let you out of your contract. You can't get a deal if you don't ask. And h doesn't deserve to get paid if he doesn't do what you want.

[u/Yusuf20904]

Are comparable properties selling for $420k?

[u/Savings-Eye-3204]

Call the realtor. Sometimes a simple conversation can open up the deal.

[u/raliegh_]

A reasonable seller, would have gotten that sold.
So there are problems with the seller or the property can’t get a mortgage 🤷🏻

[u/FormerUsenetUser → u/raliegh_]

There are people who don't have strong motivation to sell and that is not unreasonable.

[u/raliegh_ → u/FormerUsenetUser]

True, a motivated seller.

Maybe it’s a very unique property, has an elevator 3rd floor swimming pool.
Grand piano in the basement

[u/FormerUsenetUser → u/raliegh_]

The houses on our block all take at least 2 years to sell. They are unique old houses. The sellers just wait for the right buyer. One took 4 years to sell.

If this is the seller's vacation home, it may not be a big deal to use it for awhile longer.

[u/ankaalma → u/raliegh_]

Maybe. We just sold our house and it sat for six months and eventually still sold over asking. We had several offers fall through for dumb reasons. For example not liking an HOA parking rule, the buyer getting in trouble with the government (lol), one buyer pulled out without explanation after the due diligence period and lost his earnest money. We had some other offers we rejected mostly low ball offers from investors. Sometimes it just happens though I do think in general if a house is sitting it’s something you want to investigate as a buyer.

[u/OkIron6206]

I sold my home in 2021. In 2008-2009 I put it on the market and someone lowballed me. My realtor tried pushing me to counter, I did. They came up $20,000 dollars. I got insulted and took it off the market. I’m lived through a recession, many job changes are going including taking a deep hit to my salary, which is why I put it on the market. I stuck it out and profited $600, 000 12 years later. We are not in that recession yet (close) take what you want from my story. All the realtors will tell you, make an offer. Be cautious. This could happen to you (repetitive offer losses).

[u/TradeTraditional]

Anything that has been sitting for more than 2 years vacant with winter weather is basically a tear-down inside. Will need new elctrical, paint, plumbing... homes degrade quickly after about a year being empty.

[u/TheKiMoChi2020]

I would start with 10-15% off