Special offer

Avoiding Seller's Regret for NOT taking an offer

By
Real Estate Agent with myhousedidnotsell.com

Listing Agents......There are some pre-offer things you can do to prepare the sellers for an offer off of the list price...(and I have to admit, I am a lot of times too busy doing other stuff to do this) But...Put your seller on the drip campaigns for similar properties...When they see the numbers come in on their computer, they are as overwhelmed as most buyers.

Also, one other thing I used to do and need to get back doing is to present the offers IN MY OFFICE. I think people feel comfortable in the house and in control of the whole thing there. This is a business decision, and should be recognized as such.

With each offer, present all the evidence the buyer has used to make his offer....meaning, the whole pre listing CMA all over again. Lots may change in a few months.

When the famous and horrible phrase "I won't give it away" comes into the room, ask them what price "giving it away" is? If they were buying today and right now with all that out there, would they buy their house for that amount....that is what they are doing....each rejected offer or lack of a counter offer is the re=purchasing of the property. They are "buying their own house back"..

Figure out the expenses (especially if they are in a condo and/or holding two properties). When you do this make sure you let them know there is money spent owning this property which is not equity building....For instance, the interest paid to the bank....which in most cases is most of the payment. Also, the fees for the condo assoc. And the taxes and the insurance...all non-equity building expenses. One other loss that most people do not add into this is the interest potentially earned on the money they would get from the house. (If they say they are paying off credit cards this is even better!). When people start looking at the sale as a business transaction, they are more likely to negotiate and get the business done.

And lastly, when they say that it seems that you are working for the buyer comes into the conversation....truthfully tell them that you do not want them to regret the loss of this buyer and to have to wait another six or eight months to get another offer...especially when it looks like prices are heading downward. You want them to be fully aware that this may be the only offer they will get for YEARS.....And that has nothing to do with the quality of their particular house. I have been known to ask if they want a big glass of water, cause this really is a hard "pill to swallow". You owe the seller the truth, and you need to let them know that some shark has eaten all the fish and you do not want to risk letting this one off of the hook.

Comments (9)

James Gordon
Sibcy Cline RealtorsĀ® - Cincinnati, OH
REALTOR, PBD SFR SRS
Ruth it can be frustrating to have a client refuse the first offer and then see decreasing offers come in the longer the home stays on the market.
Oct 10, 2007 11:20 PM
Al Maxwell
Keller Williams - Marietta, GA
Real Estate Agent
I have found that if I give them a little time to let the offer sink in and meet in person, that at least they will counter.
Oct 10, 2007 11:20 PM
Andrew Trevino
ADT Real Estate - Wilkes Barre, PA
Wilkes-Barre Homes For Sale

This sounds like a very tough conversation to have with a seller. I'm so very glad that I concentrate on the buying side of the transaction. Still, I can imagine some of the hard conversations that have been had over offers I've submitted on behalf of my clients. You have to have your facts straight. Thanks for the post.

Oct 10, 2007 11:46 PM
Gordon Sloan
Group1 Real Estate, selling houses in Salt Lake City Utah - Salt Lake City, UT
Salt Lake Homes For Sale, Salt Lake Real Estate

Ruth.. Good post.  A great reminder that if we are going to give our sellers the representation we owe them, then we need to present the "truth" in a compelling manner.

I particularly like the buy it back technique.  I learned that years ago and has worked well for me over the years.

Thankls

Oct 10, 2007 11:57 PM
Michelle Rottach
RE/MAX Elite Homes - Bettendorf, IA
Scott County Iowa Real Estate

Great Post. I like the idea of presenting an updated CMA with the contract. It takes some of the emotion of the offer and makes them focus on the fact that it's a business transaction for both parties involved.

Thanks

Oct 11, 2007 12:09 AM
Richard Dmochowski
ERA Hemlock Sales Agency - Lords Valley, PA
ABR, CRS, e-Pro, SRES
Great advise, alot of the sellers I have, (39 listings), are 2nd home owners. I wish I could present to them in my ofice, but most of the time it is over the phone. Non equity building expenses is a new term for me and I will be using that from now on! Thanks
Oct 11, 2007 12:15 AM
Ruth Arnold
myhousedidnotsell.com - Lighthouse Point, FL
Experienced third party opinion for sellers.
Thanks guys.  This was in response to a situation discussed in another forum, and I thought it might help some of the agents who have never been involved in this kind of a market.  Richard, I too sell a lot of homes without meeting the seller....so I am faced with that same scene.  I find that people are usually more negotiable selling the second home than the house they are living in.  But some of the same wording is necessary to help the seller adjust to today's real estate market.  Ruth
Oct 11, 2007 03:42 AM
David Dee
RMX REALTY - Alhambra, CA
Real Estate - San Gabriel Valley (L.A.) & N. Orang

Ruth,

Great post! It is true what you said about accepting that first offer. With the market conditions we are presently experiencing, it is best to see about getting that first offer into escrow if possible.

Dave

Oct 14, 2007 06:17 AM
Cynthia Tilghman, RealtorĀ® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hi Ruth,
Educating clients before selling or buying is SO IMPORTANT!  Many do not understand the process and it is our responsibility to teach them.  
Apr 11, 2008 11:43 PM