We have been getting alot of buyers writting lowball offers. What I don't think they realize is that most of the sellers have already reduced their prices. I have listings that have reduced over $200,000. Then they finally get an offer and it is over $200,000 less than the asking price. It is very discouraging for my clients selling their homes. The things that seem to be selling are the real deals, however, alot of sellers will sell and loose some money but refuse to loose even more by low ball offers. The deals are that the price of homes have not gone up and that the buyers have a wide selection of homes to choose from. They are also getting great deals on finance rates. Most of them have lost their job and have equity in their homes but will walk away just to get out of it.Some clients are selling because they are just downsizing. Foreclosures and shortsales are happening because businesses are down and they are cutting back so they have job cuts or people just do not know how to budget their money with the new economy. They are use to going on lots of vacations and continue to go still to go or they haven't cut back their shopping habits because they are not use to doing that so they run themselves into bad financial situations. Be satisfied with a great deal and great intrest rates.
People are getting offers because of the low deal that it ALREADY IS. I hate to see the insult to injury.
Kim:
We have had some of that as well here in Charlotte . I can't tell you how many times I have had to almost beg a buyer to reconsider their price for an offer. I always go back to the same old, "At what price are you going to be upset if you lost this house because you offend the seller?" Sometimes if we word it differently...
Lisa aka @allstarmom3
I have a listing that the seller thought his property was worth 900,000 and I told him at best 829,000 in this market... He then reduced it to 799,000 and then he got a 500,000 offer. He said---- them!!! I encouraged him to counter and not take it personal so he did.... He came off so much but we both agreed the buyers were trying to rape him.. So he let them walk.....
Buyers think that they can offer anything in this market and most of them don't know a home that is priced right. I think that it is a combination of their greed as well as an incompetent buyer's agent. The agent should be pulling the comps and showing the buyer what a reasonable offer would be.
Have you ever considered attaching a seller buydown strategy to your listings? In every case a buyer can save more money each month writing a full price offer and requesting for the seller to buy their rate down.
I had shown an example where a seller was considering a 100k price reduction, but I advised him to instead offer to pay 3 points to buy the buyers rate down. This ended up saving the seller 52,000 and the buyer saved about 100 dollars a month in their monthly payment, plus the cost of the points were tax deductible by the buyer even though the seller paid for them. This saved the buyer, the seller, and the agent made more money, and we protected neighborhood values.
Are they really interested or just kicking tires. I think people are out there playing games and utilizing our time to their advantage. They don't care who they insult. How many of them really actually have a sale come to fruition? The odds would be very slim that they every will buy anything, unless out of desperation of a Seller.
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