Buyers' Attitudes Can Bring Better Deal

Fifteen years ago, when Real Estate was just a hobby, I helped Bob, my close friend, purchase his first home.  There were multiple offers, and the homeowners chose Bob because of an introductory letter his Agent wrote on his behalf.  Bob was a single parent, raising his Son and also taking care of his Mother.  The homeowners were retirees, and loved the fact that Bob had been, and still was, taking care of his Mother, and he got the house.  That was my first exposure to letters like that, and how powerful they are.

I learned this  the hard way.  My clients were making a fair but under asking price offer and they had even written a letter justifying their offer.  I was told by my mentor to mention NOTHING NEGATIVE about the home.  Clients changed their letter and I presented the offer in a positive light.  Should have kept my mouth shut but I made one statement regarding refinishing the floors and buying new appliances.  Might have use the phrase 'to make the house more livable for my clients".   Lesson learned.  Clients raised their price and got the house but the damage had been done.  Granted the sellers were losing their dream house and going through a divorce but it was a negative transaction from beginning to end.

I totally agree Ricki and appreciate your post. I am not sure when the idea to negoatiate by telling the seller why the buyer is offering less became popular. As you say, it starts the negotiations off in a negative tone. I have always told my agents you do not want to get the other party in a defensive mode which only gets them digging in their heals.

The reality is; the seller has a value, the buyer has a value - and if the two shall meet, we will have market value. There is no need to justify to the seller why their property is only worth $xxx because of what my buyer has to do.

If my seller has two offers and one takes a negative approach from the beginning, I can only conclude they will be negative when the inspection negotiation dance takes place. I would rather have my seller take the offer, even if it may be less, of the party which has a better chance of keeping the transaction together. After all, it is my responsibility to help the seller get the property SOLD.

Hi Ricki , thanks for confirming my hunches.  I have heard you should ask for the offer each and every showing.  I prefer to let buyer's emotions rule and then encourage.

When buyers talk about all the negatives, it makes me wonder why they even want to make an offer.

Generally speaking it does not pay to knock a home to the sellers, just to get the price down or make them feel bad.

Great post. Thank you. I too just went through class to get my ABR. That is one of the items we talked about at length. Don't be negative about the seller's home. And now, together with reading your post and the responses, I will keep that in mind, even when tempted to do the opposite. :-)

Ricki:

When the home you are selling is your own, it is very hard to not be sensitive to negative comments.  Buyers should be advised by their agents to stay with positive comments about the house.  But I do think that if I were going to sell my home I would hire an agent in my office to sell it for me.  That would take me out the equation.

It is hard to keep the emotions out of the negotiations when you are tied to the property.  That said it is best not to let emotions rule the sale and make it tougher.  Look in the eyes of the buyer and keep it professional.

I always let the sellers know all of the positives about the home.  They probably know the negatives--they have lived there.  If they aren't aware of the negatives, pointing them out, does not help in the negotiation.  When I present a low offer, I explain that the buyer really wants the house and why.  Sellers like to hear that and even though the price is low, it makes them more willing to negotiate. 

Thanks for the great article!! I have a buyer coming in town this weekend to look at a home she put a offer on.  The seller countered back at 20,000 higher than our offer....the seller loves the home her and her belated husband had it built..she said the house was to big for her to take care of anymore...

Well, we are going to go and view the property this weekend! Lets see if it works for us!

Great post Ricki. As you point out, one's home has sentimental attachment. Isn't this why staging requires removal of personal objects - to begin the detachment process from the home, and to avoid viewers' fixation on other than the home?. Some are indeed insensitive. If they need to spend $$, that is their choice.

Cheers.