Home : Blogs : Joe Manausa - Tallahassee Real Estate : Tallahassee Real Estate

Best Counter-Offer Ever!!!!

I am certain that all of you in tough market's are starting to see some crazy offers coming through. Yesterday, one of our agents received a "Low Ball" offer, though it was more of a "No Ball" offer. The listing price was around $300,000 and the offer was closer to $140,000!

Our market is down about 24% on units, but pricing is holding steady in most price ranges. This property is just above our median price point, so it will sell very close to its last-year's value.

The reason for this post is for one reason (and one reason only), and that is to share the Seller's Counter Offer. It consisted only of this cover sheet (sorry the image quality is not very good, but I bet you can get the point).

real estate in tallahassee florida

I hope you enjoyed this as much as I did.

Subscribe to this Blog:

Joe Manausa, MBA, CRB, CRS | Broker / Owner | Century 21 First Realty

2365 Centerville Road | Tallahassee, Florida 32308 | 850-386-2001 | http://www.manausa.com/

Posted by Joe Manausa - Tallahassee Real Estate on 09/21/2007 07:14 AM

Comments (132)

tallahassee real estate

Originally posted at: Tallahassee Real Estate: Best Counter-Offer Ever!!!!

Post is included in group: Realtors®

132 Comments on Best Counter-Offer Ever!!!!

SEP

2007

Well, that pretty much says it all. I've never gotten a fax like that. Very funny!

This is hysterical!Unfortunately,there are people who take these lowball offers..hence they keep coming!Love this response though!

Thanks Al, it made my day.

Thanks Big Guy! When I saw it, I knew it belonged on AR!

Joe, you're too funny, thanks for my first laugh this Friday morning.

I'm glad you liked it as much as I did Missy. I'm thinking we might have to make this an official form at our company.....

Excellent counter, Joe. I admire your seller's attitude in creating a pungent but descriptive response!

Thanks Brian. He has a flare for the English Vocabulary.

Joe: A picture worth a thousand words.

Exactly Roberta. This one speaks volumes!

Alrighty! Not wanting to break up the party here, but if you sent that to another Realtor, I'm pretty sure it is a breach of ethics. You could have simply said "no thank you".

In the market we are in people will often go fishing. I think you have missed an opportunity by not countering. Do you know anything about the buyer? If the buyer actually wanted the house and not just wanted the price the response you sent will certainly send him away.

I am trying to add something here not start a war, but it constantly amazes me that so many people describe what we do as a "profession" and then act in this way.

Thanks for ruining all the fun.

To answer all of your questions:

1. The buyer has sent at least five offers like this on properties in all types of ranges (and by the way, it was a Lease-Purchase offer to boot!!!!). He is not "for real," just someone who thinks he's the next real estate Guru. 40% of value and lease purchase? Come-on...

2. Even though our client requested we send it, we verbally refused to counter (with the other agent).

3. 40% of value is not fishing. It is just being STUPID. I don't know your market, but our values are down less than 1% in this price range. Every good Tallahassee Realtor knows this.

4. It is possible to be a professional, and also maintain a sense of humor. That was the purpose of this post. So Smile Simon, and have a great day.

Well Joe that changes things. Certainly from your original post we all understood that you actually sent that fax to the other side. You also didn't tell us it was a lease purchase or that he had been making offers like this all over town.

Joe, isn't that just great. Does that mean there's no room for a counter offer?

Joe -- even the most irate member of the public I dealt with didnt' use this method of communication--- I wonder as I am laughing, do I know either of these fine upstanding members of the Tallahassee community?

That is very funny! A picture does speak a thousand words...LOL

Too many details Simon...thanks for the reply.

Kevin, he still has his other hand....

LOL.

Did you see Broker Bryant's Counter Offer?

This is great!

Maybe the Seller Eva.... Ask Scott Williamson, he'll tell you.

Thanks Jon, maybe two thousand on this one!

No Karen, but I'll check it out. THanks for sending it.

Too many details? "truth" is something I'm big on. *lol*

Phylena, the counter was sent by the Seller to us. We called the Buyer's "Agent" and said that no counter would be forthcoming. Should I have sent the counter by fax?

Simon, I'd rather focus on humor....

Joe - nuff said! *lol* - NOW I have to thank you for the laugh!

um, LOL! I guess the sellers have answered!

Very funny Joe!! I think that seller and I would get along just fine.

Karen, just watched Broker Bryant's Counter Offer, way cool!

Thanks Renee, answer is loud and clear!

Broker Bryant, your video (Broker Bryant's Counter Offer) just blew me away. Thanks for stopping by....

I just love it. I wish my seller had countered like that. The house was listed at 660K price reduced from 760K and the offer came in at 500K.

My seller countered, " Nice Joke, Send A Real Offer Or Non At All!!!"

Thanks James. You have my permission to copy, change respondent name, and send .... :).

Hysterical Joe. Definitely need to save that one! Thanks for a great Friday laugh.

Also, thanks to Karen and to Broker Bryant for their additional laugh. I think it is critical to keep your sense of humor, especially as the real estate market continues its bumpy ride. Thanks again folks!

Thanks Phylena.

The buyer deserves it - but who has the guts to send it? In our market, things are much more congenial, and we always call the listing agent if we plan to write for more than 10k or so under asking. If the seller won't look at it, no point wasting time writing it. Can't believe that offer was even written!!

Thanks Joe. I loved Broker Bryant's video.... Gives me some evil ideas....

Thanks Jennifer, we are typically the same way here. This was just so different....

Well thanks Joe. We had fun making that video. If you like videos check my "video" tag on my blog. I have about 10 of them I believe.

Joe, I Had a counter offer like that too. Too funny!! fortunately I was representing the seller. When I told my seller what the offer was, over the phone it was utter silence. He asked if I had a picture phone so he could send me a picture of his counter offer. I knew exactly what he meant.

Thanks Michael, I'd be honored.

I'll check them out Bryant. I hope they are as good as the shotgun "counter."

I'm still laughing Donna. Send it!

Great post! I loved the message he was sending!

SEP

2007

Thanks Christopher, it was Crystal Clear.

140,000 offer on a 300,000 home, I don't think it is so out of whack, because that is how it was priced five or six years ago. Now the housing bubble bursted, people should live in a real world, start to sell it at a realistic price.

I bet that home will sell very much close to 140,000 five years from now

Using historic metric, Tally homes are overpriced by 50%. AT the current price, simply, real family with real income can NOT afford it.

What happen when people buys home at current price? They default on their loan, then the house foreclosed and go back on the market

Thanks Suzi, interesting graphic.

Joe - You just made my morning...got a good chuckle out of this one. Good for the seller!

Jerry, seems like you have a pretty dim view of our market. Would you care to share with us your measurement of 50%? What science did you use to obtain this, I'm all ears.

Joe, This is one way to tell the "shopper" to go elsewhere!

Thanks Bill, I think he was chuckling a bit himself.

I am also looking for a home in Tally, tell you how I feel about the home prices in Tally, I am feeling the same way the other buyer could offer,

So do I get a finger from you too , Joe?

In a word, yes. If you offer 40% of what something is worth, you are wasting my time, the seller's time, and your own time. What do you have to gain from making an offer that won't be accepted? Is yours going to be a lease purchase like the one in the above situation? I think the seller was just having fun, but what was the buyer doing?

Hi Everyone,

Way to measure valuation in stock is PE or Price to earning ratio, historic at 15, or earning yield of 7.5%, since earning keeping increasing due to inflation and other factor, people get 10% return in stock in the long run. So in 2000, stocks selling at 33 times earning, at the sametime every stockbroker still telling their clients to buy stocks. You all know what happened next, many people are financially ruined by the stock bubble.

On the other hand, Home price is traded at 3 to 3.5 times median income from 1945 to 2000. For a price to be sustainable, we have to have the underlying income to support. We are trading at 6 to 7 times median income right now. The problem is that over the past five years, the growth rate in debt using to buy homes has been Five times faster than the gross domestic product. "That means you ultimately reach a point where you don't generate enough income to pay the interest on the debt. So the Housing Party abruptly ended. Now we have a glut of inventory that is destined to get much worse

Do you want to make an intellegent guess on what happen to the home price?

New name, same comments..... You are not a contrarian. You are saying what all bears are saying (and they are in the majority).

Is it a buyer's market? Yes. Are supplies high? Yes. 50% overpriced. No.

Joe,

What does a glut of inventory mean? Price is too high. Econ 101, More inventory means lower prices ahead. Sellers dont controll prices, buyers do't control prices, real estate agents don't control prices. It is the market. Tally home inventory doubled from year ago, shouldl double again if there were no drastic price cut by next year.

Is it a buyer's market? Not yet, We are in transition from a seller to a buyer's market. The very begining in fact. A buyer's market is still about 2 years away.

How do you know a buyer's market has finaly arrived? It is when 140,000 is gladly accepted by Joe, instead of a finger from Joe

You are very bold and brave, with no name to your comments. I would gladly make a friendly wager that the home in question will not be sold for $140,000 in the next 10 years (really forever, but how would I collect?).

I wish you the best in your home search.

I agree with some of your "Econ 101" points, but you mix logic with false data.

You state "Tally home inventory doubled from year ago." That is wrong, go check your source of information. I have reported inventories for 15 years. Our inventory is at its highest point in that time, but it is no where near double in the past year.

You state "More inventory means lower prices ahead. Sellers dont controll prices, buyers do't control prices, real estate agents don't control prices. It is the market."

I agree with this. And the market is measurable. I recommend you read some of my blogs with measurements as well as others. It will verify that it is a buyers' market. And inventories are higher. But that is where your numbers and the market reports are very different.

Thanks Pat. I agree.

Is Contrarian, Anonymous' little brother?

They do seem similar Kevin... Hmmmm.tant

Let's just hope I am wrong, because going through a bear market in Real estate hurts many families, both financially and mentally.

On the other hand, I think the overall economy is just fine, because the home construction is only 5-6% of GDP. Having one sector of economy do poorly should not cause an overall recession. 1986, oil price felt under $10 a barrell, many oil compnanies went bankrupt, yet the economy did just fine.

Well said Michael.

Contrarian, I'm not so sure you are outright wrong, just overstated. We have seen the expected slowdown, and we will not see the boom market of '05 again for a while (most likely '15, as our market seems to follow a 10-year cycle). But we are growing, the need for housing is on the rise. We overfed our market with supply, so the growth will take time to bring us back. The one great exception, in Tallahassee, is if we land a couple new large businesses. Since we have been a government town historically, a flux of new businesses could create another expansion period.

Will do Michael. THanks.

Wow, that is a rather strong responce! I know my buyers range at what they will aquire properties for. I'm not going to waste my time writing up contracts just for the fun of it. A simple rejection would have done. I have written some low offers before, buyers these days feel like they can steal a house, but most are realistic at the end of the day. An offer is an offer only, and yes worthy of a counter. On the second round of bidding you then will see if a deal may be possible.

When I represent the seller, sure we get lowballs. Yes they get offended, I have to real them in a bit and remind them, its nothing personal. As long as both sides are talking, we have a chance. Lets not reject or offend any potential purchaser or agent.

On a side note though, that is classic and rather humerous! I would save the fax for my Odd occurances in Real Estate, It just may take the award!

Thanks Chad and I agree with you. A lowball offer is better than none at all.... Except when the offer is nonsense. In our current market, a lowball offer in this price range would be in the 80-90% of asking price (assuming the property is priced correctly, and this one is). The offer was 1st, a lease purchase, meaning the buyer could close a year from now, and second, at 40% of asking price, and third, one of multiple shots in the dark. There was no benefit to the seller communicating with someone at this discount.

Im on the same page with you Joe- I just presented an offer for a long-term client for 45% of asking. My client knows damn well this offer is not going to fly, they are just seeing what happens. They have room to move and will move. I advise them not to offer such an amount, but hey, I am only an advisor, and work for them. They make their own choices.

I did warn the listing agent about a lowball ball offer and my intent is not to offend, but worth a counter. I also told my client that I would contact the listing agent prior to submitting the offer, as is serves us no purpose to be known as the Realtor whe submits crap. It kind of took the sting out of the offer and gave her time to warn her client.

So now, we are at realistic numbers, and a deal may actually be made. There was nothing really going on with the house anyways, the market is over saturated with listings, so yes a buyer has the option to "go nuts". My client would likely go 100% asking if need be when the time comes.

Waste of time? They are my clients I follow their directions. 25 closings with me this year from them this year, I'm inclined to follow their model. Sometimes they see a property that they MUST have, and will only go listing if they have to.

Luckily though, you did not send that responce to the Buyers agent and kept it diplomatic. On the BA side, I would never send the responce to a client, just say like you said. Offer was rejected.

My point- Don't hold the Buyers agent responsible for a cray offer. When your client starts yelling at you about "why the house is not selling" you can always say, you had an offer and decided not to counter. You just never know when a low baller is looking for a deal or just wants to get the best deal.

I still say though, It is a classic rejection!

I'll stick with the classics...maybe I'm old fashioned. Thanks for the follow-up Chad.

Thanks for the hoot!

You're welcome Dan, I'm glad you liked it.

Seems like a lot of people had something to say on this one.

I listed a home for $450,000 about 5 months ago. Seller paid $438000 for it 12 months prior to listing. THe only good comp in the area was itself. Nothing else had sold in the area for even close to that in the prior 12 months.

5 months later, we're down to $405,000. Seller must come to the table with money at that price, but they've relocated & are willing to do it.

I got an offer for $350,000. They stated since it's such a bad market, they think we should be glad to get $350,000. I wish I had that graphic then!

Yeah Gary, it was hot and heavy there for a while.

Wow Erica, that is tough. Please feel free to use the graphic as needed. Our market is not down that much on prices (yet?).

Love the picture. I wish that I had thought of that with some of the offers I have received.

SEP

2007

Great Counter! I wonder what some buyers are thinking!

Thanks Sheri, you'll be ready next time!

Wow,presenting the counter must have been fun for the buyers agent.

Thanks Nathan. I thought it was an appropriate response.

Thanks Keith and Robin. We didn't actually send this, we "verbalized" it to the agent.....

Hi Joe,

I thought the counter offer was a joke but it actually had a date on it!! This post really started my day off with a laugh.

Thanks Tracy. Our seller has a good sense of humor.

I can see how some people might not like that response, but I think it was funny and justified.

Me too Allison.

I showed this to my wife, after I stopped choking on my laughter. Thanks, Joe. Hope you don't run into the Buyer's agent at MLS meeting!

That IS the best counter ever! I've never seen anyone offer 47% on a home before.

SEP

2007

Thanks Joey.

Thanks Ronnie. Me neither, and I think that is why we got such a good laugh from the Seller's response.

SEP

2007

Hahahahahaha. Great fun.

I'm glad you liked it Gina.

that is brilliant >>>!! I love it!

I'm glad you liked it Konnie.

HAHA, that's great. Everyone should respond to offers like that.

It sure would make bad offers more fun! Thanks Stephen.

Can I copy the response for my Seller. I just received an offer just as bad.

Go for it Andy.

I am going to bookmark this one for future refernce! Classic, you gota love it!

Thanks Rob. It still cracks me up.

Does he have 5 fingers?

SEP

2007

He was only trying to emphasize one of them Michael.

That is very funny. Great counter offer!

That is WAY too funny. Good job for Mr. Seller! I bet you got a kick out of that response!

Thanks Dan, I think it is my favorite.

We get low ball offers all the time. They usually don't even have a name on them and say "intent to purchase" and not much else.

I certainly did Tracy, Thanks.

Thanks Cheri'. Gotta love "intent to purchase."

Holy @#$%, that is funny!

If it didn't also contain private information, I would post an email one of my clients sent to the VP of sales for a major home builder. You would have loved the creative use of clipart.

Thanks Paul. Send it to me, I'll doctor it up and post it...

Ok we got one on a duplex priced at 235K the offer was for 86K. When the agent that had floor duty stopped strangling, she sid she thought the offer was too low and would not be accepted. The potential buyer then started swearing and said that agent were just not realistic and sellers had better wake up. End of deal...

Thanks Perrin. I don't think "End of deal" can happen when "No deal" was there.

I'm sure many Seller's wish they could send that, sigh...

Joe, that is a fantastic counter offer and that made my day.

SEP

2007

Thanks Christina, maybe we need to make it a form to download from the NAR website.

I'm glad you liked it David. Have a great one!

I laughed so hard that I cried. Thanks for sharing this.

I'm glad you liked it Stew.

Very Very FUnny. Thanks for this

WOW That cracks me up! Love it Thanks for the laugh I needed it today!

Carla Cullum

Keller Williams Dallas/Ft worth

Thanks Jeremiah.

Thanks Carla, glad you liked it.

OCT

2007

I hereby nominate this to the AR Hall of Fame................ damn... is there such a thing?

OCT

2007

Thanks Lewis. It certainly rec'd a good bit of attention. Should this be a standard form?

OCT

2007

Too Funny. I might have to use this if someone brings me a lowball offer.

This had got me freaking laughing at work. I have to pass tis out to everyone!

Thanks "no name," use it in good health.

Low balling is bring out the worst on all sides. I would not want to present that one! What would happen if they also asked for a rebate? LOL

I'm glad you got a kick out of it Nick.

Thanks Mary, I agree with you. Low balling adds no value. Does nothing.

MAR

2008

I agree Sam. I think we'll see it even more now.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?

Joe Manausa - Tallahassee Real Estate

Tallahassee, FL

More about me…

Century 21 First Realty

Address: 1140 Capital Circle SE, Suite #12, Tallahassee, FL, 32301

Office Phone: (850) 386-2001

Cell Phone: (850) 508-1544

Email Me

Links

Archives

Find FL real estate agents and Tallahassee real estate on ActiveRain.

Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.