Friday night started very promisingly. We'd had a closing in the afternoon, and then early evening we got a call that an offer would be coming in on one of our listings.
It's a great listing, good neighborhood and school district, priced VERY aggressively. Around here, recent sales prices have been near 2004 to 2005 purchase prices. These sellers had finished the basement and added hardwood throughout most of the main floor since purchase, and we're priced only slightly above what they paid in 2004. Essentially, the new owner is getting a free finished basement and hardwood flooring included in the expected sales price.
The offer was 88% of list, low but we still thought capable of bringing together. The buyer was a corporate relo and his agent indicated that they'd already made an offer on another area home that was inferior in features, and the buyer had been disappointed in that home's 99% of list counter. Additionally, they had already sold their home in Indiana, but had to go lower than they'd wanted on the sale.
After a couple of volleys, we're still apart, still hopeful, but now at the point where our clients can't go any lower, so the final counter goes over. It's a fantastic bargain at the offer price, but turns out that even though the buyer is capable of going much higher, he's not willing to, nor was he ever willing to approach our list price. He's got it in his head that the percent off list price is his metric for determining if he's gotten an adequate deal. His agent fully understands our listing's value and knows it's a fantastic buy, but can't get his buyer to budge further because the buyer feels he's not getting enough "off"!
So to make this particular buyer happy, we'd have been better off overpricing the listing so he could have gotten a "better deal" in his mind! Too bad he can't understand that the percentage off has NOTHING to do with whether or not you actually got a great buy! A fairly priced home that only takes off a few thousand is better than an overpriced home that gives you tens of thousands off, but still ends at a higher price for the same home! It's the END POINT THAT MATTERS, not how many dollars off you get!
It's a shame, because today we get to deliver the bad news to our sellers that this buyer is walking away. At least the listing has been getting plenty of showings, so just a matter of time until another buyer comes along that WILL recognize the value.
So if you're looking for a home in the Warren County Ohio area and need some experts to discern the great deals from the overpriced ones, just contact The Liz Spear Team of RE/MAX Elite! You'll be glad you did!
Hope you're having a great weekend!
Liz and Bill
REALTORS(S) Serving Warren County Ohio & Adjacent Areas
The Liz Spear Team of RE/MAX Elite
Elizabeth & William Spear
Ask for us by name if you visit the office!
Two locations: Lebanon & Mason, OH
Liz direct: 513-265-3004
Bill direct: 513-520-5305
Our Website: www.LizTour.com
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