Buyers' Remorse -- Two Sides of The Coin

Carla: Great job with this post! So often in these situations, there is a feeling of "I told you so" by us agents, and rightfully so. It makes you wish there was a clear-cut way to get clients to listen.

Interesting post.  Yes, this is a very tricky job.  I'm glad I don't have to it.

Yes  'the talk' needs to happen both with first timers and experieced home buyers who think they know lots more than us professionals who do this all day every day for years.  Kind of likened to the dentist story.  I do my own teeth or better yet - let's all represent ourselves in court.  Sure......

It's such a shame when "that talk" doesn't get through to them.  But yes, two sides to the coin for sure.

I've told many a client i'll do my best to get you the best deal but i can't "steal" a house for you.

Buyers' Agents need to sit down with buyer, go over the comps and explain the facts about property values and what goes into determining a list price.  Unless a home is clearly overpriced, it will sell and the buyers needs to know the risks of making a low-ball offer. 

Often buyers don't understand the market and just knee-jerk a low offer. 

Carla - This has been on my mind on my last successful accepted offer. The buyer, coached by me with what you have stated above, wanted to start out with that "offer to get the ball rolling". I told them that they could insult the seller and not get a counter. They were O.K. with it.

When the counter came back $10,000 less on the sellers side my buyer wanted to go to their original amount and kick theirs up $10,000 with intent on maybe $5000 more. Come on kids it you want this house we need to be aggressive. Your intelligent people don't chance losing your first fabulous house to "playing the game". I did not think the seller was going to go back and forth. We were originally $40K lower.

BAMM. My buyers accepted the sellers counter.

Now, I hope that they don't feel they have over paid and have the BUYERS remorse and walk away. Time will tell.

Carla... great post... I can't tell you how many times I've worked with one of my agents and have run comps and market studies upside down and backwards to show without a doubt, this is what's going on in the neighborhood. Yet, the buyer (as you well point out) heard about a distressed sale down the street and gets stubborn about pricing (when the house they're comparing is like apples to oranges)... And it's the agents fault the offer was ignored or unaccepted... We're all growing thicker skin.. :o) But I do feel for the buyer... they could of purchased, they wanted to, but they got hung up over a couple of dollars.

I ask people when they really like a home if it is worth X amount of money to be sure.  How is it going to feel to have to drive by this "perfect" home all the time that you did not get because you tried to save a little money.

I work with quite a few people that are moving to this area.  Their previous location has suffered greatly due to the housing slump.  They come here and can't believe that homes are selling between 95-98% of list.  I show them the comps we talk about what would be a reasonable offer but they just can't believe that Franklin TN is doing so much better than their previous location even though the numbers show it.  They make a low offer and lose.  They have no one to blame but themselves.

Also, sometimes buyers don't understand that the home is in a very good price and if they think it more time it's going to fly of course that's it's when they relaly like the home, it has happend to me several times that they think it a a lot and then when they decided to submit an offer the home is not on the market, I don't want to be a pushy, but sometimes buyers need to react.

This post reminds me of the day we received an email from an agent who stated that their Buyer was canceling the contract on one of our Short Sale Listings and was entitled to do so by virtue of the "Buyers Remorse Clause"!  I couldn't find that pesky clause anywhere in the contract, and the Buyer couldn't find their Earnest Money after they cancelled! 

Carla......What a great post.  I love your twist on Buyers' Remorse taking the side of a missed opportunity because of a low-ball offer.  I had always looked at Buyers' Remorse as occuring after the offer had been accepted.  Thanks for giving me a new perspective.

Nice post.. I'm working with a buyer who just turned 86. He's wanting to pay CASH for a house. The first home we looked at he wanted to offer 75k on a 158k listing. I think I'm having remorse.

Sometimes no matter how much we counsel our buyers they still just have to "test" the market, they have to follow what their mom or dad or friends is telling them... and then they lose out... and yes, they do have remorse.  A very good perspective on this other side of the coin.

Carla - I think the way you handle it is a good way to do so.  I also think Jane has a good point.

Carla...good read and well presnted

A serious buyer has conduct that compliments that belief......Eventually, house and buyer will meet up. Trying to purchase Real Estate like you would items at a garage sale......cheapens the process and wastes every-ones time. I wont play at Real Estate......it deserves more respect than that....

Yes, there are two types of buyer's remorse:

I wish I had offered less.

I wish I had offered more.

But there's only one kind of agent remorse:

I knew better and didn't speak up.

Well done. I always ask my clients, "Do you really want the house? Your offer has to show when it's a buyers market and you really want the house". I make sure they make the decision because I don't like when they ask, "What would you do?" AGH!!!!!!!!!