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New Technique That Buyers Are Using

By
Real Estate Agent License # 258579

New Technique That Buyers Are Using

I just heard of this technique today after a joint conference with area agents about what is working for their clients in this market. 

Buyers are making one low offer on multiple properties; one at a time of course.

Buyers are searching the real estate market and putting together a list of 5-10 houses that they would be happy buying.  They rank these houses in order from their favorite to their least favorite.  The buyers then place a value on each house at which they feel they are getting an amazing deal.

Once the buyer has put a number on each of the houses, they are making offers starting at the top of their list.  The buyers are not willing to negotiate and they want to present the offer as a first and final offer.  They tell their plan to the listing agent so that the sellers know that if they reject the offer that they will be moving on to try the same tactic on another property. 

This is actually working for many buyers.  In multiple cases, agents in the office had had this technique work for their clients.  Buying tactics are adapting to the market conditions and with so many distressed properties on the market and so few buyers, the buyers have the upper hand when it comes to negotiating.

Barbara Hensley
RE/MAX Properties - Rockwall, TX
Homes for Sale in Rockwall County, Texas

Interesting!  I am not surprised as I have been seeing all sorts of multiple offers - this is just more organized and focused. 

Oct 26, 2010 07:18 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I do not know if the take it or leave it attitude would work around here.  We have a sellers market right now.  However, I do have buyers making multiple offers to see who will bite on a low offer.

Oct 26, 2010 07:19 AM
Michael Emerson
Keller Williams Realty - San Juan Capistrano, CA

Wow, I am surprised that this is working. I guess prices here, in California, are still pretty close to the actual market value. Low ball and final offers just seem to drastic, and I don't think Sellers will jump. Interesting story though and one I have not heard before.

Oct 26, 2010 07:19 AM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

Too many buyers are using this technique on Short Sales here in Boise, Idaho.  The difference is our Short Sale Addendum allows the buyer to back out without recourse up to the point the bank accepts the offer.  When I list a short sale, I require the buyer to put up at least 1% non refundable that is forfeited if the buyer backs out prior to bank response.  That stops this game in it's tracks sometimes.

Oct 26, 2010 07:20 AM
Henry Pailles
Chula Vista Realtor,Short sale,Eastlake Real estate,Realtor - Chula Vista, CA
San Diego Real Estate, San Diego Realtor, Chula Vista Real Estate

The problem is that there are agents that will allow these buyers to play the game of multiple offers...weak agents with not much to do in their day

Oct 26, 2010 07:20 AM
Ted Tyrrell
RE/MAXCamosun (Chatterton) - Victoria, BC
Selling Homes in Beautiful Victoria

Yes, they are looking for that, oh so desperate seller who will take their offer to stop the pain.  It's a little hard on the realtors involved, but I believe it IS a legitimate way to sell a house.

Oct 26, 2010 07:22 AM
Brandon Farmer
Charlotte, NC
Keller Williams Realty Huntersville, NC

Barbara ~ We have experience all sorts of creative ideas from buyers in sellers in this market.  I am not surprised either.

Gene ~ I am sure the sellers do not like the "take it or leave it" attitude but the buyers are thinking that eventually they will find a seller that is desperate and they will accept their offer.

Michael ~ Glad to hear the market is better in California.  Hopefully we will begin to see more drastic improvement in the Charlotte area soon.

Jim ~ We have the same issues with people backing out of short sales with there being no recourse.  Thanks for tip about asking for a non-refundable fee.  Who receives this 1% when the buyers backs out, buyer or bank?

Henry ~ Many agents are desperate and will work with any client they can find.  As real estate agents we are the professional advisors and should teach our clients about the market and help with their buying decision.  At the end of the day we still have to present the offer in the way our client asks it to be presented.

Oct 26, 2010 07:26 AM
Brandon Farmer
Charlotte, NC
Keller Williams Realty Huntersville, NC

Ted ~ thanks for the comment.  It is a legitimate way to sell...just not exactly what the sellers were expecting when they listed their house.

Oct 26, 2010 07:28 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Buyers do have the upper hand when there is so much inventory compared to the number of qualified buyers.

Oct 26, 2010 08:15 AM