There is a first for everything.
One of our buyer clients recently wrote an offer, and in the offer they specified a price 10% below the list (a very common scenario in this market, especially for properties priced over $400,000).
The sellers were hugely offended by the offer. They became highly emotional and responded by RAISING THEIR PRICE BY $20,000. Then they countered our client's offer at $10,000 above the previous list price. Needless to say our clients said thanks but no thanks.
Keep in mind this property has been unoccupied for more than a year. During this time the demand for properties priced over $400,000 has slid lower, and by our estimation continues to move lower right now. The sellers have plenty of equity in their property, but they also have monthly holding costs that include a mortgage, property taxes, utilities and other fees. In other words they are paying good money each month to see their property sit on the market as the market erodes the equity in their home.
Now the task of selling their property just became more difficult. Buyer agents will share the MLS price history with their clients, and their clients will know the property didn't sell when it was priced $20,000 lower.
Tensions are high in this market, and it's completely understandable when emotions enter into the equation. But getting a home sold in this market is all about process. When emotions take over and the process is forgotten, the end results can be devastating. Lost time and lost money. Months and even years on the market. Tens and even hundreds of thousands of dollars lost.
Dan Miller, Keller Williams Realty and www.DaneCountyMarket.com
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