Today, I received a call from another agent asking me if writing up an offer on one of my listings was even worth it. The other party showed it yesterday and apparently the potential buyer loved it but can only go up to $xxx. "Would your seller consider an offer for $xxx"? My answer is always the same, "I don't know, my seller is responsible for making that decision".

Of course, when I hung up the phone with the other agent, I ended up telling myself "if they knew they could only qualify up to $xxx why did they waste their time looking at properties that are at least 10% higher than they can afford"? To me, it's a petty game that too many people are playing today. We all want a deal but everyone needs to do their homework on any given property. As buyers agents, we need to be watching out for our clients best interests and potentially ticking off a seller is not the best option for his/her buyer.

When I show property, I am always prepared to answer the following questions. 1) Is the property priced well to begin with?, 2) What comps justify the current asking price? and 3) Does my buyer want the property and how upset would they be if they did not get it?

Just throwing out an offer and hoping it sticks is (in my mind) poor representation. As a buyer's agent, what questions do you have before writing an offer?

 
Star Posted by Doug Lindstrom on 12/02/2007 04:03 PM   Comments (48)   real estate, loveland  
Generate short URL

48 Comments on I Thought I Would Save Some Time & Ask You If......

20 Most Recent Comments Displayed Show All

DEC
02
2007
138,475 Points 14 Featured Posts Outside Blog

Hi Doug, here in NH we have to present ALL offers and I too always say "I never know what my seller will take but if you put it in writing you'll have a better chance.

It baffles me too, why are they looking at homes they are not qualified to buy. I guess they are just throwing crap on the wall hoping one will stick.

10:57pm • #29
DEC
03
2007
1,419,798 Points 52 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
From the listing side, I would have responded, "I don't know, but put something in writing and let's see if we can negotiate." When I work with buyers, I generally show one or two that are slightly higher than their indicated range. Every once in awhile they come up with some extra cash to make it work, and if not they usually appreciate that I've shown them a slightly wider range of homes.
12:22am • #30
3 Featured Posts

I too am getting soooo tired of calls like this.  I simply tell them to put it in writing and lets see what happens.  I always feel for the buyers as their agent is building their hopes up for a fall by showing them homes that they quite simply cannot afford.  it really is a shame and the chances are that the buyers will get frustrated and stop looking or move on to an agent who will show them the correct homes for their price range.
12:50am • #31
509,063 Points 13 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
I really like your thoughts on this subject. There are a lot of real estate agents out there and there are a lot that just don't have a clue. I have never ever called an agent to "ask" if their sellers would take a low offer - but I have written a few and have had them excepted. It is all about approach and negotiation. The other agent needs to learn some skills.
2:22am • #32
127,267 Points 3 Featured Posts
Only question necessary - "What is your fax number." They have to present all offers. 
7:25am • #33
129,532 Points 3 Featured Posts Outside Blog
Doug, I feel that verbal negotaiting is OK after you at least get the first offer in writing. If you start out verbally, it's hard to move to a written agreement.
7:59am • #34
116,366 Points 6 Featured Posts Outside Blog

I get that alot on my listings.  Offer presentation is a SKILL and no matter what the offer is, a good buyer's agent should at least be able to encourage the seller to come back.  You never know what a buyer will pay or how low a seller will go until it's in writing.

Kudos to you for not turning it down.  I'd say that's one lazy agent.  Get those people on paper and let's see where it goes. If they can't afford the home (within the range) then they have no business looking at the home.

8:16am • #35
In this market an offer is a starting point. I always contact the seller's agent to ask questions. The first is if the home is still available. Last week I wrote up 2 offers for teh same buyer, both homes were short sales and had offers presented on them a week earlier. I also want to know the seller's motivation. A home that has been on the market 120 days without any price adjustments will get treated differently then a home that was just listed.
8:20am • #36
293,204 Points 19 Featured Posts Outside Blog
I guess this one could go either way and depends on the type of buyer you're working with. Some buyers only want that steal of a deal and will put out multiple low-ball offers to see which ones bite.
8:53am • #37
151,411 Points 4 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I wouldn't have answered that question even if the seller had turned down the same offer or better the day before.  I'd have responded by simply stating, "Write it up!"  An offer is always a starting point and as a listing agent, I'll take it.  Don't be concerned that I or my seller might be offended by your offer.  Write it up, fax it over and let's see what we can work out.  Let's deal! 

10:09am • #38
601,529 Points 36 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp
Doug, I always want to get it on the table. You never know what both parties will do until you start the clock ticking. A well written contract that offers the sellers concessions can work and when you help your seller see that some flexibility is necessary....you never know until it is on the table. Any contract now should be worked with. If the people can't qualify....is there any "out of the box" things that might make it work. Probably not...but I always test it out and see if the other agent and I can brainstorm. Just me and how I am always looking for a positive solution. Nice post!
10:31am • #39
299,746 Points 21 Featured Posts Localism Sponsor
Simple Answer for a Simple Question - Put it in writing and we'll see!
10:57am • #40

I agree with a lot that is presented here, however I want to caution one thing.

You are REQUIRED in many states to present ALL offers -- and yes that includes verbals -- to your sellers. It is not a binding agreement in a court of law, however there have been legal precedents established where the selling agent did not advise the client of a verbal agreement and the final selling price was lower. And the agent was required to cover the difference between the two offers once they found out about it. 

 
11:27am • #41

If I got that call my response would be (like most of the others) "Put it in writing and we can see what happens" after all what if by some chance your seller would accept the price but then the written comes in lower.. You end up looking like a idiot. Or say the price is OK but the closing is 6 months away, they need to sell their property first, or want a pony upon closing. Price is only one part of the equation.
J C
12:00pm • #42
569,544 Points 1 Featured Post Localism Sponsor Outside Blog
Very well handled response to a not so well prepared buyers' agent.  First repky should always be to put the best offer you can in writing and I will present it .
12:51pm • #43
520,778 Points 229 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

It's not uncommon in a slowing market for Buyer's to be more demanding and expect pricing concessions. I may show a property that is priced above my client's qualified price range if it's been on the market an excessive amount of time with little or no activity, and the Sellers could be motivated to accept a lower offer, if all other elements were acceptable. But as a general rule, I usually only show them properties that they obviously can qualify for....
1:00pm • #44
The fact that the Agent is asking you if it is worth his time to write up the offer, makes me want to ask him if it is worth my sellers time to consider it.
2:50pm • #45
4 Featured Posts
In this market ANY offer is good.  At least it is a starting point.  Once they commit on paper there is the possibility of coming to an agreement.  It seems like this seller's agent is playing a game, expecting the seller to accept whatever the potential buyer is offering.  Tough one.
8:11pm • #46
DEC
04
2007
6 Featured Posts
Doug - I empathize with your situation as both a listing agent and a buyer's agent.  I have to say, in my market it's quite possible that a property may just sell for 10% below market if the area is competing with a number of foreclosures.  Banks are slashing prices in some neighborhoods to a minimum of 25% below market and then cutting 5% more every 30 days it sits on the market.  As a buyer's agent, it's my job to get my clients the best possible price and we don't know what motivates the seller.  Because I'm in such a transient area, the seller may very well consider an offer at 10% below list price a deal if he's competing with homes priced 25% below FMV.  The key as a buyer's agent is to present the offer with tact and grace and make the seller understand the offer isn't a personal attack on their home's value.  It is simply a reflection of the current market.  Just a thought...Incidentally, you handled the question very well.  My stock answer is always, "I will present anything your client offers in the best possible light to my client."  There's no point in throwing away the baby with the bath water!!
7:37am • #47
1,951,415 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

This is just stuff and nonsense.

What the seller wants is in the MLS listing.

If the buyer wants it for less, let them write it.

What do they expect the seller to do, negotiate with themselves.  The only people with the good sense in this market to do that is new home builders.  Sellers are still living in a dream world.  Only a written offer is going to get them off the dime. 

Besides, there is a lot more to an offer than price.  What about terms and conditions? 

6:07pm • #48

20 Most Recent Comments Displayed Show All


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 

Doug Lindstrom

Loveland, CO

More about me…

eXp Realty

Address: 1635 Foxtrail DR, Loveland, CO, 80538

Office Phone: (970) 744-1075

Cell Phone: (970) 744-1075

Email Me

My blog is all about my passion, real estate.


Links

Archives

RSS 2.0 Feed for this blog