Dear Home Seller: So, you are offended?

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Dear Home Seller: So, you are offended?

In some of my previous market reports I gave tips to sellers as to how to gain a competitive edge in this challenging market; one of the tips was: Do not take offense if a buyer makes a low-ball offer.

The present real estate market in the Dutchess County area is what is called a buyer's market. Properties are on the market longer, the inventory is large and there are fewer buyers.

You can imagine how surprised I was when one of my buyers placed an offer and the seller was so offended that the consideration of a counter offer was out of the question. This offer was by no means out of the realm of the type of offers I have been seeing this year, and with good negotiation a meeting of the minds would have been possible.

In this particular incident it was especially surprising because this property was in the price range that would have required a jumbo loan, a category in which there are even fewer buyers, but my buyer was paying cash.

I make a point to tell my sellers that a buyer will probably make a low offer but don't get offended by this, instead view it as the beginning point of a negotiation process instead of the end.

So what should a seller do next when facing this situation?

Review the offer with your agent
Take a look at the most recent sale of similar properties
Make a counter offer.

Your counter offer will give the potential buyer a clear indication as to whether you are willing to budge on the price. or not. At this stage your counter offer might be accepted or you might have to do this back and forth a few times. The key is this, don't get offended and you might find that you can arrive at an agreement.

In the case I mentioned above, because of high inventory and cash in hand the buyer moved on to another property, and did not see any reason to waste time on a seller who took offense to an offer

Jennifer Fivelsdal - JFIVE HOMES REALTY LLC - 845-758-6842- jennifer@jfivehomes.com

www.jfivehomes.com or www.midhudsonhomevalue.com

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Posted by Jennifer Fivelsdal Rhinebeck Real Estate (Serving Dutchess| Columbia|Ulster Ctys on 06/23/2009 08:46 AM

Comments (84)

Negotiating in the Home Selling Channel

real estate negotiation, counter offer, home sellers, negotiating

Originally posted at: Rhinebeck Living: Dear Home Seller: So, you are offended?

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84 Comments on Dear Home Seller: So, you are offended?

JUN

2009

Jennifer - that's pretty sound advice. I think it's human nature to get offended when the offer is less than what we expect or hope for, even if we are told to expect it. I make a big point of this with sellers, with examples, just in case, since it is bound to happen in most cases. Sometimes I am even shocked at how low the offers can be, but you really have to keep it in perspective AND not take it personally.

Jeff

Jeff You are so right, we need to constantly remind our sellers of the market conditions; and that the low end offer is a strong possibility but should be seen as a starting point. Also there is no need to take it personal.

On the other hand, buyers' agents need to counsel buyers to expect a counter if the original offer is less than asking price. If they are giving their best and final offer initially, I think it best to tell the seller this up front when the offer is submitted.

Hi Jennifer,

Well said. I think part of the issue can also be a lack of counseling on the side of the listing agent, preparation is a big help.

JUN

2009

Hi Jennifer... great advice! Keeping emotions, like getting offended, out of negotiations is always advisable. By simply making a counteroffer you keep the communications flowing that could result in a deal.

Jennifer - Excellent advice. Sellers should always make a counter offer instead of risking having the buyer walk away. Of course, as the buyer's agent - you could always suggest the buyer submit a new offer to show the seller that there is serious interest. I have often seen the seller more willing to negotiate after the buyer comes back a 2nd time around. I would also tell the buyer not to be offended either if the seller rejected the offer rather than counter-offering. In order to successfully negotiate this, one party might have to cave in and make the next move.

Sellers should not throw the baby out with the bath water. They need to understand that someone has had enough interest in their property to put an offer in writing. That's enough at least to start a conversation.

Jennifer ~ I think you are on the right track with this advice. Buyers are hearing a lot of information on the news and they are simply trying to get an idea of where the seller's bottom is! There is nothing to be offended about. I find a lot of listing agents actually get "offended" and by doing so influence the seller's reaction. This is unfortunate because they seller may miss an opportunity. It is a matter of counseling both buyer and seller.

Diane - I agree, counsel is needed on both sides.

Lynda - In this market there are so many obstacles that it is even more important to Prep our sellers.

Steve - Keeping the communication going is key to probably achieving a good end result.

Carol - The buyer making another offer is certainly a good option and is more likely to happen in a tight inventory market, Today's buyers are rather savvy, they know the inventory level, DOM, what price range is selling etc. With high inventory level they don't see the need to deal with sellers who gets easily offended as this could be an indication of further difficulty with the process if the choice is to move forward.

Brian - There is definitely interest if someone takes the time to fill out the paperwork to make a formal offer

Joan - You are so right, some agents get in the way by setting the tone which leads to the seller getting offended.

Sellers often realize months after the offer they could not acceopt or counter that they made a mistake. We can only advise. Sadly, sometimes we are not heard.

Silly sellers not prepped right. Unfortunately some sellers are just not thinking straight and their agent has not counciled them first. That is all we see here, if my sellers got offended we would be sitting on nothing. I think I have heard the phrase there is no such thing in as a low ball offer in this market.

Just counter it.

Now the second side of the coin is even if the sellers counter and most do, they too come back high.

A good offer at fair price is the best way to go, eveyone wins and no one is offended.

Great post, Jen.

Jennifer,

Congrats on another star in your crown :)

You are giving sage advice. I try to tell my sellers that this is business. But you know how it is......for sellers, the process is emotional. Some sellers take a low ball offers as an insult. They think the buyers are insulting "their" home.

Wake up people. In most areas of the country, we are in a buyers market. Sellers, if you have a buyer interested in your property, do your best to negotiate. If you don't, I can guarantee you that there are probably 6 other homes for them to choose from.

Have a great day

Leander

Jennifer - I always tell sellers... Don't be angry at the low offer you received, it's a starting point and gets the conversation started. Always counter!

Your market can determine the real value and the offers that come in reflect that market. If explained when the place is listed that do not be offended with offers and then remind them of the conversation when they come in, it does not have to be an emotional roller coaster. Still, the seller who says don't waste my time with these low ball offers and bring me only ones close to the asking price...he or she can get testy with all these offensive in their opinion offers.

From the moment I take a new listing I talk to the seller about "business decisions, not personal decisions" and not being offended at all by what a buyer will bring.

Most of the times though when an offer comes in the advice isn't taken.

It's so hard for sellers to take out of the equation the personal affronts that they feel are taking place.

Awesome article!

The best feedback any seller can get is an offer...regardless of the price. A smile and a counter is so effective.

My script when a seller won't counter is to say, but this is better than the offer we had yesterday. He says, but we didn't have an offer yesterday. You are correct, so you are up $150,000. Now let's figure out what will work, since these nice people took the time to go to a mortgage company, hire a Realtor, and filled out a lot of paperwork.

Great advice. Too bad that it isn't heeded more often - we'd all have more sales and less inventory.

Most of the time I recommend to my sellers counter it. If the buyer offered this much they may be willing to pay more. In the event that they aren't a big enough boy to perform, let them walk away with egg on their face. If the offer is totally ridiculous, then give them the option of not responding. Not responding sends a louder message than a rejection if the buyer is a total idiot.

Jennifer: Well deserved FEATURE! Congrat's. I think your advice to sellers/buyers is right on. No one is crazy about low-ball offers...but the sellers just need to take a deep breath, sleep on it maybe, and then COUNTER. An offer is just that, an offer.

Mark - That is always the case. I have even seen where that was the best offer.

Missy - That is so true, there is really no such thing as a low offer, view the offer as a chance to get a conversation going. Even when the seller respond by barely budging from the original price this gives the buyer an idea what to expect.

Debbie - That is a great advice to your seller.

Andrew - You are right, there are several opportunities to remind seller not to get offended by an offer, but a positive response could lead to a good outcome.

Kris - You take the right approach.

Claude - I like that, any offer should be viewed as a good feedback and a smile and a counter could make all the difference.

Joe - I love your script, more listing agents should try it. Thanks for sharing.

To Sellers: don't take it personally. When you are making an offer on a home wouldn't you like to try for the best (lowest) price you could? Let's talk about a counteroffer.

I offended a seller yesterday too. I told the agent to get over it. His home is overprice, sure our offer was a bit low but he isnt getting that price...the agent got my point.

Hear Hear Jennifer it is not the time to be insulted by any offer!

Good post.

Sometimes the agent is the one who gets offended. Recently, I had an agent lecture me that in the popular neighborhood where his property was listed, he was able to use comps that were 12 months old to justify the price of his listing. When I explained that appraisers now used 3 month old comps he told me in a snooty voice that perhaps “that was the way you do comps", but "I know this neighborhood and have worked in this neighborhood for 10 years and I know how to run comps for this neighborhood.” (There are hundreds of sales in this neighborhood in the past year, so there is no need to use such old comps)

He also pointed out that when he ran the comps two months ago for this listing, the listing price could easily be justified. I offered to show him the comps I ran the day before I made the offer, but he said that he didn't have to review my comps because the properties in this neighborhood hold their value over time.

My buyer was a cash buyer and willing to close within two weeks, but this agent was not interested in our offer. In fact, when he countered at $350K, he said that there was no more room for the seller to negotiate. This counter was at least $40K over the best comps from the past three months.

Oh well, we are now looking for a serous seller.

Great post Jennifer: In this market many sellers are not looking at what's on the table before them until it's too late.

It really doesn't matter what the offer is the seller could make a counter offer. A buyer wants a bargin so if they take a look at the big picture and see all the prices other homes in the area then they will realize that the seller's price is at market value.

Jennifer, great advice and well stated. An offer is the beginning of a negotiation process.

Well written concise post worthy of a Gold Star. Congratulations Jennifer. I like what you said "Take a look at the most recent sales of similiar properties". I am sure some home owners don't do that. They automatically assume that the listing price of their house is market value. We all know in this market that your house is only going to sell for what a similiar house in your neighborhood recently sold for. Great post.

Joe-I love your script. Like Jennifer said agents should try it.

Removing emotion from a transaction is a key element. It's our job to be the deflector of such issues if you were to ask me.

Sellers should ALWAYS make a counter offer, since buyers are throwing these out there to basically see how desperate some sellers are, and maybe they'll get a deal. Always counter, cause you don't know what the buyer is also willing to do!

Jennifer I find that the Sellers that seem to be offended by a low offer tend to be the ones that the house has not been on the market very long. Those that have been sitting there for a couple of months are usually happy that they even have a point to start negotiating from.

Seems some listing agents are afraid to be straight up with their sellers about the reality of the market they are in. A great disservice to everyone involved. I always explain to sellers that I am required to present ALL offers no matter what! I had one guy yank his listing...a $60,000. listing because he received a half price offer. He refused to list it or sell it with anyone! The buyer agent told me later that they would have paid almost list and were hoping for a counter! His loss I suppose!!!

Over time that house will most likely be taken off the market or it will sell for an amount the buyer was probably willing to pay. Educating our clients is key, but them understanding and following is what unlocks the door.

Great advice Jennifer (and an awesome script Joe) - I've sure learned over the years never to assume that you are too far apart to reach mutual agreement even when it initially seems that way - as long as the negotiations continue there is a good chance of getting there.

Hi Jennifer sorry to hear you could not make it to the negotiation table. I guess from my perspective it would really depend on how low the offer is. If the offer is ridiculous there are times when I do not think it is in the sellers best interest to counter.

They didn't counter? With a CASH buyer?!? I always tell my buyer clients that when we go in at less then list and they're paying with cash it's a telltale sign that they (my clients) might have more (cash) and to brace themselves for a counter. A good listing agent would have recognized a cash buyer TYPICALLY has more cash to close the deal.

Not even a counter?!?

What a pity!!

Yea, sellers should keep emotion out of the equation & work towards selling their home!!

Jennifer A real estate transaction always goes smoother if both agents educate their sellers as you have done - excellent post, Karen

There are still sellers out there that don't get it...continue doing what you are doing and your clients will be better off for it.

William - We could all do with less inventory and more sales.

Kat - I can't see any harm in countering. By countering there is a possibility the negotiation will result in a sale.

Sara - More sellers need to put themselves in the buyer's shoe and then they won't get as emotional.

Chuck - In some cases the agent is the one taking offense and then inciting the sellers.

Paddy Not in this market.

Laurie - I had a similar experience, and yes the appraisers are looking at the most recent comps, 6 months ago just don't make the cut anymore.

Donna responding to an offer in this market makes sense, we know that the buyers are looking for deal based on what they are hearing in the news. A responsible buyer;s agent will use current comps to provide the reality check.

Regina - That is how I see it, an offer is the beginning of the negotiation process.

Lanre - Thank you. I thought Joe's approach was excellent.

Greg - Yes with good prepping we can certainly act as the deflector.

Amy - That is true buyer's want the seller to give a hint as to where things could go.

George - That is one group, also the ones who believe the house must sell for xxxx because that is what they need to get out of the deal although the market indicates otherwise.

This reminds me of a negotiation for a house for a buyer that I had where the listing agent was a neighbor of the house being sold. The agent was more offended than the seller because, I'm sure she was worried about her personal property value going down. She was nasty throughout the whole process...inspections, walk-through prior to closing, and at the closing. I learned from that to watch out for listing agents that are neighbors of the seller.

Bob B.

Jeani educating the seller is very important, but at times they fail to response to good advice and it can be rather costly in the end.

Michelle - I have seen this scenario play out before, or the property end up selling for far less that previous offers.

Nancy - Once I was involved in a negotiation that took months, I could see little signs that the deal could come together, and in the end I was happy I kept at it as it resulted in a nice sale.

Bill - In this case it was not so low that the seller should have refused to counter; before making the offer I showed the buyer's the most recent activities in the marketplace. Although on the lower end I am positive that was not a final or best offer.

Carla - A cash buyer in a range where loans are much harder to come by is a terrific opportunity to put a deal together.

Dan - Well said.

Karen - If the sellers and buyers know what to expect upfront then less emotions will come into play.

Holly Sad but true.

Bob that is so true, if the agent is a friend or neighbor more emotions does creep into the transaction. Glad you made it to the closing table in spite of the obstacles.

Many sellers take it really personal, as if the buyer is insulting their beloved home of 25 years, for example. The one that their husband built by hand... just for them.

A lot depends on the price range and if the property is priced correctly. I prepare my sellers that this may happen but if the offer is ridiculously low it doesn't show good faith on the part of the buyer and no counter sometimes gets them to resubmit a better offer.

If it's a decent offer by all means the seller should counter in this market.

Jennifer - Even the best laid counseling with a seller doesn't always work out when it comes to low-ball offers. I had a seller last year who knew what the comps were and yet when a lower than expected offer came in his decision not to counter was based more on what he wanted to get rather than what the market would bear.

He also felt that becasue the offer was from an agent that she was trying to "steal" the property from him. To make a long story short, he rejected it outright, got another offer but the buyers couldn't get financing and kicked himself from here to tomorrow for not negotiating with the first offer he received. We never got another offer after that and the property ended up expiring.

This is a great post and I agree with a lot of what you say, I especially like Joe's come back about it being a better offer than the one yesterday, I am making a note of that one for later use! It also depends on the price the listing agent has the house at too, if they have a ridiculously high asking price, I don't mind making ridiculously low ball offers the first go around,

Another question I sometimes have is it really the sellers getting offended or the listing agent that took them erroneous comps and placed the high asking price and now can't justify why all the offers are so low? I have run into this many times.

Generally I agree Sellers should Counter but in the end it is their call. If they are so offended they will not make a Counter I'll leave a blank Counter with address and legal filled out tell them I will follow up with them the next day.

Still "no way" then I tell the Buyer or their agent the Seller will not respond to their Offer and ask them to submit another Offer, or Counter their own Offer and let them know I will gladly present it.

If the Offer is so low to not meet a minimum bid in my opinion it hurts the Buyer's strategy - I don't recommend it when working with a Buyer however I receive them on my listings and I do present all Offers.

Kent Davis

Great post - Great topic. I always tell my sellers and buyers agents "I am assuming this is just a starting point?" It keeps both parties talking and I generally receive a postive response back from the buyers agent. Lets keep the emotion out as much as possible and the deal can be accomplished. In Monmouth county we are now seeing multiple offers on well priced homes - it helps to have an offer on the table even if it doesn't get accepted especially when buyer #2 comes along.

There are a lot of great posts here, I really got a lot out of reading them.

When I'm working with one of these sellers, before I present the offer, I ask them "Do you want a SOLD sign on your front yard or do you want a "I WON" sign. This breaks the ice and sets the table for a reasonable outcome. If the parties are very far apart I recommend that the seller put their best counter-offer less a $5000 reserve on the table right away. No sense in wasting everybody's time. BTW I never present it as best and final, as nothing in real estate is ever final til it gets registered at the courthouse, hence the $5000 reserve.

When I'm working with one of these buyers, before I write the offer, I ask them what kind of negotiator they are, some like to haggle, some like to split the difference, some like a one-shot take it or leave it approach. Whatever their answer, I ask them if I can share it with the listing agent, and if they agree, I tell the listing agent. While I'm at it I ask the listing agent what kind of negotiating style the seller has. I've found that when you have polar opposite negotiating styles between the seller and the buyer it's best to know it up front if you want to have any chance of success.

Jennifer,

The "key" in the market you're in is to prepare the seller. That works. If the seller's agent is inexperienced and has not "prepped" the seller, this deal can be dead in the water right from the outset.

I'm pleased to report that in Toronto (and the GTA) prices now are higher than they have ever been.

So, we are back to multiple offers and any lowball offers are just a thing of the past. Although, of course, it is the recent past. The recession seems to be at an end, at least as far as the housing market is concerned.

Brian Madigan

You said it girl! In most markets, now is NOT the time to be cute, when presented any offer. I know I written a few crazy offers lately. The buyers are just testing the market to see what will happen. I have been surprised MORE than once, that the sellers took it.

I always warn my sellers and educate them in advance of listing, just as you do. Great advice you offer!

Amazing that agents are still having this problem in this market!

This post not only deserves a "gold star" (which it has), it deserves a reblog, which I just did!

So many buyers lately have been saying "but we have to try" - to see if they would take it, meaning a low offer. As a buyers agent we tell them you may offend the seller and they may never respond back. As a listing agent we say it's a start - it's an offer which is (in most cases) better than nothing. ~Rita

I will almost always tell my sellers to counter, even if it seems like a ridiculous offer. I remind them that it's not where we start, but where we end up. I also remind my sellers that the first offer is most of the time the best offer they will get, especially in this market. That usually gets them thinking a little more seriously.

I do remember a couple of years back I had a buyer that wrote a low offer, and the seller countered just slightly lower than her asking price. We walked, then proceeded to get a phone call 2 months later asking if she (my buyer) had found a house yet. Well, we hadn't, and ended up getting the house for the price we wanted in the first place. (Evidentally the seller's son had scolded her pretty hard about not working a deal out in the first place).

Nice post!

JUN

2009

Nice post -- and solid advice to the sellers. It can be hard on them --they often have so much emotion tied up in 'my house'. I remind them --it is business. I also like the point about it being a better offer than the one yesterday!Sincer there wasn;t one -- that is a great thinking point for the seller to ponder

Jennifer

Often is the case where cash buyers have little patience for non responsive sellers. For the seller there is personal involvement in the sales process. It is like calling their baby ugly. Sellers usually regret not having negotiated in retrospect- unfortunately, long after the cash ship has sailed.

Jennifer Great Post.

This is one of the reasons FSBOs have such trouble. They do not have a Realtor as a deflector and negotiator to take the emotions out of the negotiations. Preparing all parties ahead of time does help alot. Always counter if you can not accept has been our motto for a long time. Keep the lines of communication open. Thanks for bringing this topic to the forefront!

I love Joe's presentation ( # 17 above ). In fract, I love it so much that I just stole it. Sorry Joe.

Jennifer--For well over a year now the buyers out there have been afraid to overpay for a home...especially at high price points. It is unfortunate that listing agents do not properly prepare sellers that the offers that come in could be low as a starting point. Your clients were right to move on as offended sellers will only learn what the market is like when someone walks away. The next offer, when and if it comes, is almost always less.

What do you do when you get 2 low ball offers PLUS 3% seller's help?? Then we're told, "oh the buyers really need the closing costs because they have no money."!!!!! THEN WHY ARE THEY EVEN LOOKING!!!!????

Erica - I can understand the seller's emotional attachment and that is why as agent we need to prep them for the offer before it comes in.

Cameron - I know what you are saying, in this case it was on the lower side but not ridiculous when compared to the most recent sales.

Donna - This has happen to me too and the seller always end up settling for less in the long run.

Tony Joe's script is excellent. I agree with you it is the agent at times who takes offense.

Ken - It is the sellers call in the end. Going back to the buyer's agent and asking for a resubmit is a good follow up, amazingly some listing agent do not. Yes the seller might refuse to counter but the listing agent if skilled could still engage the other side and get another offer.

I like to preface the low ball offer to the seller with, "Now you understand that I am obligated to present all offers right?" The comment is usually followed by a, "it is pretty low isn't it?" This is a great cushion to deflect some of the anger and let's you step into actual negotiating.

Jennifer , I know that as a home seller in the past, that emotion does rear it's ugly head when it's your own house one is selling. The first low ball offer in writing I wanting to tear the paper work up right then and there. I cooled off and countered. I think sellers should counter with what they they are willing to sell for, not what they want to sell for.

Roshan - Great approach.

Mike I can see how the probing you could lead to smoother negotiations.

Brian That is great news, we are seeing some multiple offers too, but mostly with short sales.

Elizabeth - That is true, buyers want to get a sense of where the seller will go.

Ann - Sad but true. Thank you for the re-blog.

Rita - I agree it is a start, and amazingly sometimes the offer the agent consider low is accepted by the seller.

Chad - Great advice to your sellers. I have had the same thing happen where the seller will later inquire as to whether the buyer was still in the market.

Alexandra - It is part of what we do, bring reality back to the process. I can see Joe's script is a hit with many.

Allyson - So true, cash buyers don't have the patience to deal with sellers who fail to negotiate.

Dick and Dixie - You are so right, acting as a deflector can be so vital in the negotiation process.

Ron - Joe was a hit here; his script gets the seller to reason.

Rita - I would still counter which would send a clear message as to the seller's expectation.

Beverley - Good point.

I am always asked by the Buyer's agent "What are your Seller's willing to take?" Of course they know they should not ask that but i always say "bring any offer, my sellers will always give a sign back".

I never let a seller get offended at at offer below asking even if it is way below. In the end it is about negotiating the best deal that makes both parties happy. If it works out-great if not we wait for the next buyer.

In reverse, I always tell a buyer they can offer what they want, but be prepared that a low offer might not be accepted and "hopefully" the selling agent will make sure there is a sign back, even if it is full price it keeps the offer on the table.

Jennifer,

Your talking to the wrong people! The prolben isn't the serrer's it's their agents!

There is nothing new in offenceive offers, but in a depressed buyer's market sellers can't aford to be insulted. No offer schould be dismisted with out a counter offer! Evean a full price cash only counter keeps the parties talking. Or, shouting.

Bill

Jennifer,

Your talking to the wrong people! The prolben isn't the serrer's it's their agents!

Bill

Jennifer,

Your talking to the wrong people! The prolben isn't the serrer's it's their agents!

Bill

It amazes me why any buyer's agent would submit an offer to a seller that is invaluable. If the seller is asking for a value that cannot be validated, why waste your clients time? Too many agents taking listings just to get a listing is the challenge. However, it's the reality of this industry, isn't it?

Some buyers will pay a premium, yet most want a reasonable transaction and a few don't have a clue. Agents choose who they represent, don't they, so why is everybody critizing the seller?

If the property was evaluated properly and it's value validated, and priced to sell effectively, multiple offers should be received, shoudn't it and any invaluable offer would be viewed as NEXT?

Yeah but even I'M GETTING offended at some of these offers! Throw comps and agent counsel out the window I think buyers are doing what they want! Each seller and property condition is different but jeez. You really don't know if the buyer actually did buy anything or just walking around with his 'cash' making offers. People getting a mortgage is cash to me!

Jennifer, I have to agree with Lyn above me, some of the offers are just nuts. But having said that, times have changed... and we all need to rethink those offers, all of us.

Great post!

Jennifer,

Well as I have always been told...If the Seller isn't offended...you didn't go low enough! LOL

Sellers MUST remember that this is a business decision...the Buyer doesn't care if your kids were raised there, How many pretty Christmas trees you had in the living room, Etc Etc. Take the emotion out of the equation and negotiate. If you are offended just politely refuse to make a counter offer, or better yet make a counter offer that is slight below asking..and offend the Buyer. You will find out fast enough how interested they really are.

Keep on top of the market and LISTEN to your AGENT! They follow the market trends every day!

And EVERYBODY has to remember that a BUYER is the only Essential part of the equation in this market.

Then you have those sellers who know they are going to get low balled so way over price it to begin with. On the larger or more unique homes that do not move quick in most markets you really need to be ready to negotiate. The home is only worth what someone will pay for it.

Good advice. I always tell my sellers, it's just the beginning of negotiation and not to be offended at a low ball offer. Sometimes buyers make that offer just to see if the buyer will bite.

JUN

2009

I agree, offers are coming in incredibly low sometimes, especially on the higher priced listings. I've always told my sellers I don't care where they begin the negotiation, it's where we end up that counts. On some of these, even a well considered counter will do little good. There are buyers in our market who are less involved emotionally in the home and just want "a steal," but I find that more often than not we can come to a meeting of the minds where both buyer and seller are a little uncomfortable with the result.

Jennifer - I agree with your advice. Ive had sellers who rejected offers without countering, even though I urged them not to get offended. I tell all my sellers that in today's market, a low offer is simply an invitation to begin negotiations.

It's difficult for some sellers, they might feel like it's a slap in the face. Of course they are emotionally attached to the house, and hopefully during your listing presentation you warned them that there are bargain hunters and bottom feeders and that they should expect a low-ball offer or two ... Sounds like you did the best you could to keep emotions out of the equation. In the end, buying or selling a house is a business transaction. Nice post!

JUN

2009

Very, very well said! In this challenging market any seller who doesn't expect a buyer to at least try it, isn't well informed. I've re-blogged you for the benefit of folks in my area! Thanks!

We had a commercial building here in town that was priced over $100,000 below appraised value because the owner of the property is based out of another state and did not want to waste any time with low ball offers or back and forth negotiating. We had a cash buyer come in and offer another $75,000 less than the list price. The seller did not take offense, but did tell the buyer he was welcome to submit another offer. Instead of the seller being insulted on this deal the buyer was insulted that his offer was not accepted because he was paying cash. We did get the property sold and it was for the listed price. At only $10 a square foot the new buyer knew that he was getting a great deal and didn't mind paying the full price. The seller had given permission to let the buyer review the appraisal and he felt good that the offer he made was sound. It's a strange market right now and sometimes the oddest offers come in on a property!

JUL

2009

Great post Jennifer. Most people do not realize the role that emotions play in the home buying/selling process. We are VERY human. That is our job: calm the Client down and help them make the most money that they can.

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Jennifer Fivelsdal Rhinebeck Real Estate (Serving Dutchess| Columbia|Ulster Ctys

Rhinebeck, NY

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LIC. R.E. Broker JFIVE Home Realty LLC

Address: 162 Deer Run Road, Red Hook, NY, 12571

Office Phone: (845) 758-6842

Cell Phone: (845) 594-9947

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