Opinion on price of second home
We have a weekend lake home and are thinking of buying a different one for a bunch of reasons I won't get into. Our current place is in a high demand area on a very desirable lake. One of the places we are considering is quite lovely but is farther away from the "mainstream" area (an hour drive). That is part of the appeal for us but not appealing to the masses.
The property has been on and off the market three times and has now been on the market a total of over a year. I think they've lowered the price by about 15% over the course of the three listings. This time around it's now been on for two months. It's a very nice home these people built and have meticulously cared for so I can see how they might have an inflated sense of its value.
Our realtor has mentioned that the market in general hasn't completely rebounded around here and it's common for buyers to offer 20% less than the asking price. In this case that would be over 100K less than they're asking. I can't quite get my head around making an offer that "low" but I also don't want to overpay. It's very difficult to get comps for this property because there just aren't many other similar homes on this lake and values can be quite different on different lakes. There are few if any other homes this nice on this lake. Most people willing to spend that much money want to be in the midst of all the other people willing to spend that much.
I will say that I've been getting alerts on the listings for the area surrounding our current place for the last year and it isn't unheard of for someone to drop their price by $75k-$100k in one fell swoop but it still blows my mind. So do you think it's reasonable to make an offer that low and that sellers wouldn't think you're out of your mind?