Special offer

Do You Really Want To Have This Discussion?

By
Real Estate Agent with Aspen Lane Real Estate Colorful Colorado CRE# 40005863

Do You Really Want To Have This Discussion?

 

Lately, it seems that we are forced to engage in verbal negotiations when offers are submitted on our listings. 

 

Offers come in under the list price.  As the listing agent, we meet with our sellers and prepare a counter-proposal and send it back over to the buyer’s agent.  Low and behold, we get a call from the buyer’s agent stating that they can’t go quite that high but would the seller’s be willing to accept $xxx.  They usually end the conversation with – Let’s do this verbally until we come to an arrangement.

 

volleyThat is my cue to go back with more than what the seller will settle for to try and get more for the seller since they didn’t take the time to write another contract. 

 

Almost everytime, we end up agreeing on a higher price than what the seller says is their rock bottom price.

 

You see, if the buyer submitted another written offer, it is likely that the sellers would just sign it to get on down the road.  However, when the buyer’s agent opens up the forum for a game of volleyball, we feel that there is more than one opportunity to massage the price.

 

Because the buyer’s agent doesn’t take the time to write up another offer, our sellers usually come out way ahead.

 

 

Comments (11)

Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Belinda - very true; I really don't like doing verbal negotiations at all; too easy to have something fall in or out.

Aug 10, 2011 04:15 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Interesting take on the verbal negotiations.  I haven't quite had the same experiences for my Sellers here in Northern VA.  Here, it seems the Buyers really are shopping out of their price range a lot of times.

Aug 10, 2011 04:34 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Verbal offers are not valid and unenforceable.  All offers or counteroffers must be in writing. We haven't worked with verbals in over 15 years here in AZ.

Aug 10, 2011 04:40 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Belinda --- it's dangerous to consider verbal offers/counter offers or modifications --- it needs to be in written to be enforceable. When buyers ask -- "What will the seller take?"  Put it in writing and let's see....

Aug 10, 2011 04:45 AM
Not a real person
San Diego, CA

I like the verbal negotiations where we did come to an agreement, the agent wrote up the offer, and it was absolutely nothing like that verbal agreement that we had reached. I used to tell anyone wanting to negotiate verbally that they didn’t carry any weight, so just write up an offer and we’ll go from there.

However, one thing I did learn was that it’s very powerful to give people choices. So when I was a buyer’s agent, I would often write up three offers with different types of financing, different contingencies, etc. All three offers were approved by my buying Clients, so whichever one the Sellers accepted was alright by the buyers. Cut down on lots of negotiation, not to mention time since this was back in the carbon copy days of yore.

Aug 10, 2011 04:55 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Good for you and your sellers, Belinda. I see you are a strong negotiator for your clients. But, like Anna said in comment # 3, if it's not in writing, it never really happened. Verbal agreements will never hold up anywhere these days.

Aug 10, 2011 08:05 AM
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

Belinda, I would agree with you that sellers are more likely to negotiate to a lower price when something is in front of them rather than just a verbal possibility.

Aug 10, 2011 10:21 AM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Belinda, I have the other agent e-mail me all counters and I do the same with them.  This works well for my clients.

Aug 10, 2011 12:50 PM
Martha Brown
Long & Foster Real Estate, Inc., Annapolis MD 21403 - Annapolis, MD
Your Homes Around Annapolis Agent

Verbals seem to be the way it happens here after the presentation of the original offer. Though it is not legal in Maryland unless in writing it does open the negotiating and keeps the parties engaged. Once agreed though it 'in writing' lickedty split!

Aug 11, 2011 01:05 PM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Once we reach a verbal agreement, one of us puts it in writing for all parties to sign.

Aug 12, 2011 03:51 AM
Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Hi Belinda, when we represent the seller and a buyer's agent asks us to convey a verbal offer, of course we have to notify the seller.  However, since the verbal is not worth the paper it wasn't written on, we always instruct the seller to say we will counter once we've received a written offer.  After that point, negotiations can proceed verbally with confirmation via email memos until all terms are agreed upon and then we finaize on the Offer to Purchase & Contract document.

We all have to work in whatever manner i comfortable AND legal, on behalf of our clients though we want it in writing from the get go.  Speaking from a Buyer's Agent perspective...putting the Offer in writing conveys volumes to the buyer (our client) that this is real and professional.

Good topic.

Aug 15, 2011 07:22 AM