A Buyer's Agent's Responsibility to Help a Buyer Make a Good Offer

By
Real Estate Agent with Old World Realty

A Buyer's Agent's Responsibility to Help a Buyer Make a Good Offer

The media has been reminding us that it has been a buyer's market for quite some time now.  This has portrayed the misconception that buyers should be submitting offers at least 20% below list price.  Although this is a great time to buy, submitting such low offers can cause buyers to pay more for the house in the long run.

 What can happen if you submit an extremely low offer?

 Gloucester County Realtor

 1.

Sellers can simply say no without even a counter offer.  Sellers must counter offer when they receive an offer right?  Wrong, if your offer is too low to begin with they can simply deny your offer and end the lines of communication.

 

 Gloucester County Realtor

2.

The seller may be offended by the offer.  Once this happens the transaction becomes more emotional and personal.  Selling a home is always personal, but once negative feelings arise sellers often let their feelings dictate their decisions rather than the facts and the bottom line.  

  

Gloucester County Realtor

 

3.

The seller may counter offer, but the amount of counter offers it may take for the buyer and seller to come to an agreement may begin to frustrate all parties. 

Once frustration sets in, all aspects of transaction may become stressful and difficult.  It could even leave the seller with feelings of bitterness. This can in turn cause them to be less willing to accommodate you in any way through out the transaction, including but not limited to their willingness to

  • make repairs following a home inspection,
  • easily allow appraisers, inspectors, etc entry to the home,
  • the scheduling of a settlement time ...

 

You get the idea !!

  

The initial offer of a home buyer should be a strong, motivated offer.  Having the advice of an experienced buyer's agent can make all the difference in the world.  Equally important, is listening to that same advice. Your buyer's agent should use the MLS to find comparable properties that have recently sold in close proximity to the home you are considering and review them with you.  This will help you determine a fair price and make a strong, intelligent offer. 

 

see also ... Even In This Market My Buyers Paid Full Price for Their New Home

 

Posted by

Andrea Kappre is a Realtor in New Jersey, helping buyers and sellers to successfully accomplish their real estate goals. For your own customized MLS search of homes for sale in Gloucester, Salem or Camden County or other South Jersey areas call or e-mail Andrea Kappre now.  You can visit Andrea on the web at www.AndreaKappre.com or at http://realtorinnj.wordpress.com/

 

Up to the minute information about real estate market conditions in your neighborhood is at your fingertips. Click the Market Snapshot photo below and simply input your address.

 

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Contact Andrea Kappre at 856-419-3560 or AndreaKappre@yahoo.com

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Blatt + Cutino 01/07/2010 10:09 AM
  2. Jonathan Benya 01/08/2010 01:45 AM
Topic:
Home Buying
Location:
New Jersey Gloucester County
Groups:
South Jersey
New Jersey & Pennsylvania -- Realtors/Loan Officers/Title Clerks/Real Estate Lawyers
All About NJ Real Estate
Club Chaos
Gloucester County, NJ
Tags:
gloucester county
gloucester county realtor
gloucester county homes for sale

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Rainer
292,012
Richard & Carol DeGrace
1st Colonial Community Bank | Bank - New Jersey - Cherry Hill, NJ
Mortgage Loan Officers NJ 609-209-3700

Wonderful stuff. I've seen this first hand, and buyers do indeed sometimes end up in a worse scenario by trying to "steal" the house at first. Hey the object of having a buyer's agent is to have an experienced representative working for you.

Jan 05, 2010 09:46 AM #1
Rainer
230,071
Stephanie Reynolds
Integrity First Financial Group, Inc. - Santee, CA
East County San Diego Homes 619-838-4408

Good advice! Not a good idea to irritate the seller! Once they have been offended they may never come back! There is an emotional side to selling a home no matter how hard we try to convince them to not take it personally!

Jan 05, 2010 09:50 AM #2
Ambassador
1,782,128
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Andrea, good job on a well written post!  Extremely low offers - and even "just" low offers when the property is priced well - don't get the buyers anywhere.  It'll more likely cause them to "lose" a property or two before they get a reasonable offer accepted.

Jan 05, 2010 09:54 AM #3
Rainmaker
88,045
Jason Whaley
WestUSA Realty Revelation - Chandler, AZ

The last offer I wrote for a client was over the asking price and there were ot multiple offers!!!!!! We had been through a few  heartbreaks already with my client in tears and so when we found another home that she absolutely loved, We added the closing costs on top and even an extra couple hundred dollars to round off to a nice even number and she was guaranteed to get the contract signed with NO counteroffers enabling for a few more days for others to come in with another offer. She got the home and loves it!!! Was I acting in her best interests\? Absolutely!!!! I got her what she wanted and that was her home!!!

Jan 05, 2010 09:59 AM #4
Rainer
35,843
Andrea Kappre
Old World Realty - Mickleton, NJ
New Jersey Realtor, New Jersey MLS, Homes for Sale in NJ

Stephanie - there is not much worse than an angry seller is there?  Can make for an uncomfortable settlement :)

Sylvia - Thank you.. I agree completely... They need to lose a home they love before they realize what they are doing.

Jason - that is great!!!  I often tell people to give the seller what is due to them.  Buyers usually want top dollar for their own listing, but rarely are willing to pay it :)

Jan 05, 2010 10:47 AM #5
Rainmaker
808,452
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Andrea;

Buyers goals are very different from the sellers during negotiations. Buyers want to pay as little as possible while sellers want to sell for the highest possible price. Buyer advantage comes with market knowledge.

You may have seen enough to decide your offer price. However, it's wise to ask your sales professional to provide you with sold property data. By examining recent sales of similar properties you can reduce the risk of overbuying.

Know how the market has behaved recently to focus your offer price. You can assess the likelihood the seller will take less by looking at the number of competing properties and days on market. If comparable homes are selling quickly, your selection might not last long. This would prompt an offer price closer to list.

Jan 07, 2010 11:48 AM #6
Rainmaker
1,284,005
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Sometimes the buyers just have to try low-balling and losing a few before they figure this out.  It's funny how some people just have to try anyway.

Jan 16, 2010 01:13 PM #7
Rainmaker
76,355
Bridget Cella
Re/Max Connection - Sewell, NJ
e-Pro, Realtor

Hi Andrea - I have heard that it isn't anyones market, but I do feel that it is a buyers market.  I have been putting in multiple offers on properties, mostly bank owned or short sales.  But because the agents are pricing them right they are going for asking or above. 

Jan 19, 2010 02:04 AM #8
Rainer
26,043
Jason Graves
Linda Craft & Team - Raleigh, NC

The market has really changed over the last 24 months. Buyer and agents habits have changed and I'm seeing more low-ball offers than I used to. In the past, sellers often said "Thank you for your offer but we are too far apart at this time." Now, if a seller says that, there is a great risk of a buyer just saying okay and going away for good!

Also, not all offers are based on comps from a few months ago. In the recent past, we had to begin forecasting what was happening and what it would be like in another 3-6 months. I did a listing appointment last June and she didn't list until 2 weeks ago and her home value dropped about 2%. Now, put yourself in the shoes of agents working back in June in that area where prices were slipping. Are you going to pay a price based on 6 month old comparables?

Great post, gives us something to think about.

Jan 23, 2010 03:50 AM #9
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Rainer
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Andrea Kappre

New Jersey Realtor, New Jersey MLS, Homes for Sale in NJ
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