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Sellers, Don't be Greedy--Buyers aren't Playing Around!
As one who manages both buyers and sellers, I feel that I have a good ability to understand both sides of the transaction. When I'm representing a Buyer, I can pretty easily predict what the Seller is going to 'counter' when making an Offer--I can advise my Buyers what Sellers are 'expecting' as well as what is fair market value!
Don't ask me which side I prefer to be on--it changes with the market AND with each transaction! I love working with both!
Today, it was with Buyers--
Enter Seller #1: Home on the market for nearly one year--started out around $660K, now asking $579K. The price of the home, according to archives, has been up and down (don't we generally DROP the prices, rather than raise them)? The listing agent tells me that they've had a few 'interested' parties and a couple of offers. The price reduction, then immediate increase coincides with the offers--not quite sure what they were thinking!
My buyers had two favorites--so, they made their Offer based on comparables that I had pulled for their review. I honestly advised them to Offer $540K, which was just under market value but, they felt that they wanted to be sure not to 'insult' the Sellers. Bear in mind--this was a CASH offer with a limited repair request (meaning, the buyer doesn't want the seller to make any repairs unless it's mechanical or structural--no window replacements, garage door [which needs to be replaced], etc. --he wants to do the repairs himself to ascertain that it is done right). The home, not well-maintained, would probably rank as a 'fair' in the condition status. My Buyers offered $550K. I informed the listing agent that my buyers were cash buyers that have a second home that they are willing to move on but, they love this home and hope his sellers are ready to negotiate. I said specifically that even though this is a cash deal, the buyers will have an appraisal and the home must appraise at the agreed-upon price. I also told him that the buyers are leaving Charlotte in a day and want this resolved--we placed a deadline on the time to respond and waited.
At the witching hour, I received an email, basically telling me that I don't know my $*s from a hole in the ground, because my comparables are ALL wrong--he wrote, "I pulled MY comparables all the way back to the beginning of 2008 because nothing has really sold in the neighborhood this past year!" YES sirree, that's what he said to me! What, what, what? 15 month comps, huh?! He said his sellers wanted to counteroffer at $575K--yep, a WHOLE $4K off list price, which remains $39K above market value!
Enter Seller #2: Home on the market for one year--started around $675K, now asking $599K. The price of the home has been reduced in small increments but, often. The listing agent tells me that the Sellers have had 5 very interested parties and four of them are STILL awaiting the sale of their own home. This home is in immaculate condition, fully updated and turn key. The comparables come in at $640K, a full $100K above the first home PLUS the second home is immaculate!
I informed the listing agent that my buyers are cash buyers, have another favorite and hope that her sellers are ready to negotiate as they are READY to buy before leaving Charlotte tomorrow. I let her know that my clients would like to offer $570K. PLUS, they had several items that they wanted to sellers to leave in the home and those were itemized and listed on the OTP. We also placed a drop-dead time to respond so that the Buyers could go home with this portion of their move under their belts.
LONG before the 'witching hour,' the listing agent calls with a counteroffer--all items that the Buyer wants are his and the counteroffer is $575!Now, that's more like it!
What's the difference between the two Sellers? Could be: 1. informed sellers (or lack thereof) 2. greed 3. lack of desire to sell.
Either way, I hope my buyers decision to walk away is a hint to the first sellers. Frankly, their counter was an insult--and their agent didn't bother to tell me that he 'tried' to tell them differently either--Instead, he tried to relay to me that he thought that I was a dumb blonde. Excuse me, WHO had the cash buyer and WHO made the sale today?
It was a great Saturday for this blonde broker!
About the author:
Debe Maxwell is a Charlotte Residential Real Estate Broker, Certified Neighborhood & Relocation Specialist, ABR & e-PRO who can assist you with the purchase and/or sale of real estate in the Charlotte NC Metro Area. If you’re relocating to or from any other area of the country, Debe connects you with any member of her team of relocation professionals in your destination or exit city of choice. The
destination service is of no cost to you! The Maxwell House Group’s quality service guarantee puts this team far ahead of the competition; providing unsurpassed customer service is their #1 priority! Debe Maxwell — Helen Adams Realty — 704.491.3310
Disclaimer: All information provided by this author is strictly an opinion, is not guaranteed, may be based on information collected from several sources, which may or may not be deemed reliable at the time of researching this article and may be time sensitive.
Author Bio: Debe Maxwell is a Certified Residential Specialist in the Charlotte Metro region with a focus on the Charlotte luxury home market. My team of agents each have their own specialty areas, a benefit to anyone buying a home in Charlotte NC.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.