What is it with buyers and low offers?

Everybody wants to feel like they are getting a deal.  Buyers don't understand that Sellers are now pricing their homes to sell - not sit.  Buyers still think that there is room to negotiate.  I guess Buyers figure that there is no harm in trying to get a lower price and that they would be foolish to not negotiate.

Buyers have lost their minds.  I had a buyer that wanted to look at a property that was listed for $250,000 and had been on the market for 90 days.  I knew my buyer could only go up to $200,000 but they insisted I write an offer on the $250,000 property.  Well, needless to say after 2 hours the deal is dead!

Don --- there may need to be some education for buyers that consistently lowball offers and lose --- what's that old saying about doing the same thing over and over and expecting a new result????   

I'm seeing that too Don. We need to constantly educate buyers about the local market, as where they come from may determine their perspectives.  And sometimes they need to lose one or two before that point gets driven home.

I like NAR's quarterly report because it breaks down the list to sold ratio by zip code.  Here in Phoenix, even at the slowest "buyer's" market, in my primary areas, the ratios were over 89%.  When I explained what that meant to my buyers (I'd whip out my calculator right there in the house they wanted to low ball), they'd change their tune.  The report also had a scale of buyer to seller market.  Surprisingly, it was not too far a buyer's market even when that's what the media was reporting and buyers were expecting.  

Thank you!  Had one of these yesterday, highest and best scenario and they just would not take my advice.  They are not NOT purchasing the home of their dreams and we are on the hunt again.

Don, like Jenifer (#6) we had one of these just yesterday as well - went with another offer on the same property which was 10k below listing price compared with the unrealistic 'low-ball' offer which was 45k below list price...already a steal of a deal. Thanks for sharing this - great post.