John, great point.  I'm always surprised when the buyers encounter something that really is below market and still want to discount further.  It seems people have a general "drop everything by at least 10%" rule they think must be followed.  They can miss out on a great price due to that misconception.

Hi John -- great post.  On my side of the business they always want yesterday's rates.  Why did'nt you lock me yesterday?  I demand yesterday's rate.  What part of yesterday don't they understand?

Sweet.  Good point about yesterday, too, Bruce. 

Just tell them this:  "[Shaking fist...] Damn you, second law of thermodynamics!!!"

John, I have learned that all you can do is educate your buyers and sellers of the current market and try to guide them as best you can. This way with your professional guidance they can make a decision that they will be comfortable with.

 Jeff

Orlando Real Estate

John, timing is everything and hindsight is always 20/20.  Your analogy of yesterday and tomorrow is great but you should enjoy saying "I told you so", at least once.  When you know a price will not work, and it doesn't they have hired you for your expertise and professionalism.  So when your  are acting as a buyers agent and a buyers asks to make a low-ball offer that you know won't fly and tell them so and they insist, it is nice to tell them you hired me for my knowledge.  My job is to help you buy the home you want, now if you want this home let me help.  Anyway great post.

It's interesting to see how this slowdown will play out.  I've been in the business since 1993, and used to catch my breath and gasp when buyers suggested I write their offer for 15% less than list on what I already thought to be a well-priced home.  More times than I could believe, it got countered and eventually settled for substantially less that the list price. 

You never really know what a seller will take if he is motivated enough!

Buyers who just want to discount every listing price by x% really aren't attuned to the market. Their agent can tell them whether a home is overpriced, right on, or offered at a discount. It's important to do the research before submitting an offer - otherwise the buyer can lose out.

John, great post. It's always funny to me when folks still want to discount an already discounted property. Greed is definitely in most people's nature and many times can keep them from getting a bargain. We cut off our noses to spite our faces sometimes. I believe much of that greed is driven by the term "buyer's market." People have a misconception that this means that all sellers are suddenly desperate and will take any offer that comes along, no matter how ridiculously low it may be.  Keeping the "I told you so's" to ourselves can be the biggest challenge, can't it?

John,

I just try to be the purveyor of information and hopefully, everything else will fall into place. It's a rough time out there--that's for sure.

John. what a great point!

I have never really thought about it myself, but now that you brought it up, buyers are not making the adjustment in price assuming a fall in prices tomorrow...and sometime they do want to get away with reducing the price of a property that is way below market value already...

Educate. educate.educate... thats all we can do... if that doesn't work, let them shoot themselves in the foot

Come on John... I know you have to say "I told you so".... (at least to yourself or under your breath) don't you?  I know I do!!  Although, I've limited myself to only saying it 10 times a day since it was getting totally out of hand!  <wink>

John

Great post..I love the statement " beating the greed out of them". It's too bad it has to be that way for so many buyers and sellers. 

Wow, thanks everyone.  As for I told you so, remember I said that I don't say it in so many words.  I still say it, otherwise how would I get my second offer accepted.  Usually it goes something like, "Well, now you've had some experience with the first offer, and this one is priced pretty well like the first one was...."  I also tell people about the bell curve.  My whole bell curve speech is a whole 'nother post, probably.

I guess over time as well I've been less likely to let people shoot themselves in the foot if I feel I have a chance of forcibly wrestling the gun from them.  If I think I'll get shot, then I let them do it and then just try to save their other foot. :) 

Kind of like the borrower who wants yesterday's rates. LOL

6% goes to 7% and the sky is falling. *sigh*

Hi John,

Let's see the bell curve post!  :) 

I am new and haven't had the opportunity to say 'I told you so', yet.  ;)  I have something interesting happening right now, though.  I will have to post about it if it becomes a sale. 

Doreen,

I'll work on that whole bell curve post thingie. 

Welcome to the business!  Your psychic friend, Johnnie, is getting a reading.  You're starting to think.  "Boy, this is one crappy hobby.  I have to work at it every weekend and use my own gas money.  It wouldn't be so bad if it were a job and I started making money..."

Don't worry, it takes some time to get things going, and at least in my case it didn't help that I was on a learning curve about what to say and how to make sales happen.  It'll come.   

Good Post, Indeed they do will come around. Over the many cycles, it is always the most difficult when it's a Buyer market. Seems the Buyers always get the message quickly and sellers get to slowly. In the revers, the seller's always get it quickly. When you understand the the dynamics, they both get it and they both like to jerk people around. I remain firm and won't play the BS game. Haven't ever lost anyone that was realistic. Been lucky I guess.

I'm with you, William.  I never lost anyone realistic.  Of course, that falls out trivially by my definition of "realistic".  :)

So true. We are seeing more and more of pushy buyers. Actually if they are gracious, evertually we can get a deal.

Congratulations on your 5th anniversary. Sorry no one got you a cake.

Great post. Here's your CAKE and no calories : )

It's equally as amazing when it's a seller you're working with that doesn't want to budge on their price, yet the home's they're looking at they're wanting to go in at a substantially lower offer.   And  HAPPY  5th  to  you!!  :)

Wow, I get to have my cake, and read it, too.  :)    

John, join the party (or no party) I too missed the 5 year anniversary milestone of getting my license (5/10/02).  And yes, I remember the yesterday - and I am working on my patience.  And I think that we are all being educated with this market.  I learn something new every day (but greed is not a problem for me).  I think the buyers and sellers are still really confused on what is the right approach.  But thank goodness for agents like us that is willing and able to educate them and do it with patience and sensitivity.

Too true....great post.

You are correct, I cannot count how many buyers (and sellers) lost out on initial offers and counters.  Especially over the past 24 months.  Then a few weeks they "come around" and the house (or buyers) are gone

I'm a huge fan of "Buy Me" the show on HGTV and i find myself screaming at the sellers....some can be quite greedy.

John,

It's so true what you say there. The ones with tomorrow's price are half sincere about the transaction, testing the market for its staying power. They have time and if the right thing comes along, they'll do it. The ones who mean business better understand what the market is and act accordingly.

John, great post!  As for your great line "beating the greed out of them" it seems to be resulting in more reasonable offers- instead of 30k, it's 29k off.  Maybe we all need bigger sticks to speed up reality!

John,

Wonderful post as always. I was having a very similar conversation just this past weekend. I find it very frustrating sometimes being in business of "real estate." As you said "somebody's always wanting tomorrow's price". 

D.

Happy 5th John.  I agree with Rosemary, above that buyers and sellers are confused right now. They listen to all the hype, see the homes sitting around for months, get Foreclosure U emails bombarded at them daily. My buyers are all telling me they think the market will go down much further and they are waiting. I think that is the mindset of a lot of people. Investors and rehab people are still buying, around here anyway.

Thanks for a great post & happy anniversary.

I think a lot of people in the real estate biz right now just want tomorrow...as in...the sun will come out tomorrow!

Great post! I've encountered the quest for tomorrow's price when listing second homes or recreational property. The seller becomes fixated on a "pie-in-the-sky" price and then they tell you "I'm in no hurry to sell..I'll just wait for a buyer to come along that will pay my price".

Of course, the property sits on the market year after year, and the buying public begins to develop the idea that there's something hugely wrong with the place. Many second home sellers in particular don't seem to understand that they disadvantage themselves by overpricing. 

Happy 5 year anniversary!  It seems like some people would rather put in a low offer on an overpriced home so they can get a "great deal."  That great deal is actually just true market value.

such a good point! the market has survived us all! congrats on 5-year mark! that's a great accomplishment in such a high turnover industry :)

cheers,

cindy 

John - If only my brain could remember all of the good scripts I'm learning at Active Rain.  "Tomorrow's Price" -- that's a great one! 

John great post. I agree with you when you say the market will beat the greed out of them. I see this with sellers where they are holding out for that extra one or two thousand and it ends up costing them 10 or 20 thousand dollars in the end.