Home : Blogs : Rich Kruse : Rich's Thoughts on Things

Silly Buyer Games

I have posted on this before, but it might be time for an update. This is serious folks, so if you were looking for Landlord Man or Evil Rich then read no further.

Over the past 2 weeks I have been involved with 4 offers that were so outrageous they did not even get a response. Before you jump on me, I am the seller on one and the client was most definitely consulted on the other 3.

The reason I bring this up is that many agents (and buyers) are under the impression that any offer presented MUST receive a response.

I offer this point for consideration. There are, on may purchase offers, a paragraph that states "offer open for acceptance until____________". Technically speaking, the offer is no longer valid after this date and, by extension, has self destructed.

The seller does not need to respond.

Might it be considered bad form not to respond? Maybe. Might it be a great negotiating tool? Sometimes.

Also consider this. Have you ever been in a situation where someone asks if you will take X and you say "No". The next question is "will you take Y"? You don't need to counter and bid against yourself. Many buyers will do it for you.

There is also a sales theory that basically outlines that the person who blinks first will always loose.

I'm not saying that these negotiation tools are good for every situation, nor am I saying that they should be used by everyone.

What I am saying is that if you present an offer thinking that you are going to test the water and get a counter, you might just be kidding yourself. You might get a NO response or you might not get anything. This is the risk that you may be taking by playing "silly buyer games" with purchase offers.

Posted by Rich Kruse on 06/01/2007 06:39 AM

Comments (16)

offers, no, columbus oh, counter

Post is included in group: Ohio Active Rainers
Post is included in group: REO

16 Comments on Silly Buyer Games

Interesting post Rich..but there are also Silly Seller Games.

06/01/2007 06:43 AM

by Danny Smith (DISCOVER TEXAS HOMES)

RK,

I suggest that you take the day off to reflect upon your evil ways.. Go chill!

06/01/2007 06:44 AM

by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. (Florida List For Less Realty, Inc.)

Great points Rich I just wrote a post that could be titled silly buyer games. we have not answered several low ball offers.

06/01/2007 06:45 AM

by Blue Ridge Ga Real Estate >> Real Property in Blue Ridge Georgia (United Country Landmasters)

I always recommend that my sellers counter back. Even if it is a full price counter it tells the buyer to come back with a better price. I have used this to get silly buyers into the real world and it leaves it up to the buyer to kill the deal.

06/01/2007 06:54 AM

by Greg Cremia (Shore Realty of the Outer Banks)

Rich- I have seen this type of thing too. When I am on the buying side, I usually make sure that they bueyrs know they run the risk of completely alienating the sellers when they try to play games. If I am on the seller's side, I will often suggest a response of "no acceptance, no counter." That way, they see right away we're not going to play.

06/01/2007 06:58 AM

by Syracuse/ Central New York Real Estate| Christina Lackey (Coldwell Banker Prime Properties)

There are lots of games played by both sides.... er...how you silly real estate people say it - because that is the way the games is played! Seriously, if you are representing the buyer you may take one approach. If you are representing the seller another. Even though you may play both games, you don't like it when the other "guy" plays it too!

06/01/2007 07:11 AM

by Gary Waters - Real Estate Agent Viera Suntree (Century 21 Baytree Realty www.moving2brevard.com)

Rich, I too think buyers are hurting themselves by not at least presenting an offer that may be accepted. If their agent did their homework it would help in putting together a strong offer. Come in way to low and the seller will not take the offer serious. BTW no response is a response. It means NO.

06/01/2007 07:12 AM

by Bryant Tutas-Tutas Towne Realty, Inc

Like Christina, I always ask my clients to respond with either "no acceptance/no counter" or simply "rejected". I never want anyone to suggest that I haven't presented an offer.

06/01/2007 07:44 AM

by Gregory D. Maley - Metropolitan Washington, DC REALTOR (Coldwell Banker Residential Brokerage - Chevy Chase)

This is why the housing market is slow, sellers want too much in most cases and buyers hear all the news that the housing market is slow and think they can get a 50% discount on a house, the fair market priced homes are selling fairly quickly and the overpriced stuff is sitting.

06/01/2007 08:01 AM

by Connecticut FHA LOANS,CT VA Loans CT First Time Home Buyer:CT Home Loans (www.BenchmarkCT.com: CT Commercial Loans)

I love it when they (buyer's agents) call up and start throwing the book (NAR regs) at us. At that point I say, ok hold on a minute....you've got mail. I forward the email I received from my seller that says UH -REJECTED - NEXT!

Eveline

06/01/2007 08:17 AM

by House 2 Home Realty

I think ignoring a crappy offer is often the right thing to do. Especially if you are busy. If they are going to offer low, as long as you "present" it, you did your job.

06/01/2007 09:27 AM

by John Evarts (Classic Property Management of Santa Clarita)

I received another one at 445 today. Forwarded it to the seller along with a breakdown. I expect that I will hear back that we are not going to respond. I might not hear back from the seller at all. I know what that means.

It was mentioned here that lots of games are played on both sides and that sellers have their games too. It is unfortunate, but true. When did this stop being a business?

06/01/2007 05:43 PM

by Rich Kruse (Gryphon USA, Ltd.)

Hi Rich,

Not responding can be a very valid way of dealing with specific offers. Good post.

Fran

06/02/2007 10:45 AM

by Fran Gatti - Crescent City CA Real Estate (RE/MAX Coastal Redwoods)

How many trees have to be killed for fullish offers. Last week I had a low-ball faxed to office(Friday), agent didn't bother to call, so it sat there till Monday, I got call from office personnel about 10:00, and told them not to bother faxing it was so low. Got a hold of the buyer just before Noon to confirm the no response on contract that expired at noon.

Beside the 5 pages the listing agent wasted, my office wasted 5 pages and if they had mailed it to my home office, it would have been another 5 pages.

Sometimes with all the disclosures, I've seen 10 or more pages come across.

06/02/2007 01:27 PM

by Vicky Carlton, Auctioneer,CES,CVS - Cincinnati (Global Realty Marketing)

If you think 5-10 pages is a waste, come to CA. Our offers and disclosures that are sent with the offer (not counting the others that will come if the offer's accepted) are pushing 25-30 pages now and tend to increase about every 6 months. Thank God for eFax.

- James

06/02/2007 11:24 PM

by James & Ely Malanowski - REO Agents - Palmdale, Lancaster, Rosamond, CA (Coldwell Banker - A Hartwig Co.)

Sometimes in PA we end up with 25 or so pages - My saying is that four offers will kill a tree.

On REO's, I love it when the seller tells me to contact all buyer agents for highest and best -Some of the reactions are priceless. Some day agents will figure out that sellers don't' have to obey silly MLS or local board rules. They don't belong to them so their rules don't apply.

06/07/2007 12:42 PM

by Exit Realty Innovations

Leave a response…

Name:

Notify me of new comments:

Comment:

What does the graphic say?