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Why Is The Owner Selling?? Because They Want To!!

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

WHY IS THE OWNER SELLING??   BECAUSE THEY WANT TO.

Inspired by Scott Godzyk's post about buyers making low ball offers and the information buyers seek.

 

5. If it is Owner Occupied, why is the seller selling?

 

I always found this question amusing and always wondered what the prospective buyer or buyer's agent really expects to hear. 

One never knows and below are some of the experiences I've had over the years

 

1.  Listing Agent:  "The husband's employer has relocated them to the other side of the country and they're desperate to sell.  The wife has already relocated."  (House in Lovettsville VA).

We made a very low offer on this one.  Needless to say the seller was not happy, but the buyer was very happy but nervous about making a low offer.  However, they listened and, as I told them, let's see where it goes.  You can always offer more.  with an irate seller, I arranged separate signing appts. so the buyers didn't have to be subjected to the seller's anger.


2.  Listing Agent:  "The wife won't give the husband a divorce and he moved out.  She hasn't shown the house for a year.  She's ready to go now."  (House in Bowie, MD)

Another low offer and an uncomfortable closing with the sellers not speaking to each other.  In the 3rd example, after previewing the house for sale, I couldn't understand why the house had been on the market for a year.  I called the listing agent and he told me of the problem with the wife not wanting to give the house up.   We jumped on it.


3.  Listing Agent:  "We know that some of the bricks are cracked and there are foundation cracks and the wondows and doors are not quite right.   But, the owners have spent $40,000 making repairs to a failed footer.  One corner of the house was sinking but the neighbor that did the work says it's O.K. now."  (House in Lanham, MD)

I advised against this property due to the many problems observed when we toured the property.  Some of the problems observed were doors and windows that didn't operate easily, serious cracks in the back foundation, multiple cracked bricks, etc.  However, the buyer loved the house and made an offer contingent on inspections.  The home inspector cited numerous foundation problems and an engineering report was obtained.  The inspections cost the buyer almost $1,000.  The engineering report said that the repairs had not been effective and that serious ground water would continue to cause problems. The buyer wisely voided on the home inspection report. 

Notice that the information came from the listing agent in all cases, which is usually where we get negative information.   

Hone Inspector
Maryland has a comprehensive 4 page property condition disclosure form.  I have rarely seen one that has been filled out completely or accurately.  Also, there is no place for the seller to disclose divorce, job relocation.  In the case of the foundation defect which was very serious, the seller did not disclose it, the home inspector identified the defects. 

In Virginia, the property disclosure simply "discloses" to the buyer that they have the right to inspections.  You gotta love it.

 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988. 

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Lenn Harley, Broker, Homefinders.com, 800-711-7988

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Comments(59)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lenn, what a great post, and so many times we get calls from buyer's agent asking this question.    I either say --- cause they want to, or because they want to move!     If they try to delve even deeper, I make up a story saying they have lived there so long, they have boxes from the 80's they need to go thru, so they thought they should MOVE!

Apr 10, 2012 11:50 AM
Roland Woodworth
Blue Cord Realty - Clarksville, TN
Blue Cord Realty

Sellers and neighbors alike can be harmful to the sale of a home. Best if they all stay away durning a showing or buyers and their agents could know the factors that the seller needs to sell and the buyer has the advantage here.

Apr 10, 2012 12:11 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

They are moving for the same reason that you are.... Because they WANT to! ☺

Apr 10, 2012 01:31 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

hmm I guess it is simply human nature.. on the other hand, I doubt a seller or their agent is going to disclose it is because of the neigbor or some other negative issue.

Apr 10, 2012 01:32 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Lenn, not sure if the information provided by the seller's agent really did anything bad for the sellers. They were in a situation where they HAD to sell - and the buyer liked it. Even when the price was what sellers did not expect, the sellers DID get out of the home - and moved on with their life (either together or separately). Unknowingly, the listing agent helped them - and yes, buyers did get a deal. A win-win for everyone is the way I look at it.

Apr 10, 2012 03:16 PM
Ron Cooks
The Real Estate Marketplace - Killeen, TX
Texas Real Estate, Ft Hood/Killeen Homes for Sale

Wow, this is certainly a case where the listing agents took a lot of the guesswork out of the equation.

Apr 10, 2012 04:17 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I love your answer Lenn, I may just use that in the future.  Your examples of information given by the listing agent are very enlightening as well.

Apr 10, 2012 08:18 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Jeff.

You know I've had sellers that had to be home during showings, and they took care of disclosing their life story claiming he had nothing to hide.

That will likely cost them in their net proceeds, but it's their decision.

 

I've also had sellers that asked me to tell potential buyers that they were getting divorced or transferred and just wanted offers.  They planned on accepting a lower that market value offer from the start and just wanted to get house under contract so they could close book and move on. They had no problem letting people know why they were selling, although I never understood why people cared. All they need to worry about is, does the house fits their needs and are they getting it for a fair price

Why not just price the house at market in the first place and save all that time and angst???

 

I've actually had sellers call me and complain that I wasn't there during the showings trying to sell their house. They said I needed to be there during showings and " Sell" this house to people.

Interesting.  Probably the result of agents touting their "marketing" ability. 

 

 

Apr 10, 2012 09:03 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Loreena.  BINGO!

Phil.  Indeed. 

Erica.  HA!  Which just shows the silliness of the question.

Joan.  Which just shows the silliness of the question.

Roland.  I agree completely.

Joni.  That says it all.

Joan.  That's something the person asking never considers.

Praful.  RIGHT YOU ARE.  In that particular case, with the listing showing over 365 DOM, there is a natural suspicion on the part of buyers that there is a defect in the house.  Once the listing agent, whom I knew, wisely explained the facts to me, I reassured the buyer and we moved QUICKLY to get it under contract.

Ron.  Not the first time.

Gabe.  Thanks.  We all learn from our experiences.

 

Apr 10, 2012 09:09 PM
Charlie Dresen
The Group, Inc - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Hi Lenn - Great post. That question trips so many people up...and it should be such a simple answer as your title so well demonstrates. Less is more certainly applies in this situation...the less details you give the better off you are...unless of course you're representing the buyer and get some good nuggets of information like you have!

Apr 10, 2012 09:28 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Never understood the 'why'....fishing for a lower price...the why anyone is selling answer we give "they are relocating" 'nuff said...

Apr 10, 2012 10:11 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Charlie.  Thanks.  Sellers have good reason to avoid speaking with buyers or buyers agents.

Sally and David.  Indeed.  Simple, direct and not risky.

Apr 10, 2012 10:45 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Good Morning Lenn, I am happy I could inspire you. I have been writing a series on the "Low Ball Offer" looking at it from the Buyers Side, The Sellers side and the Agents side. So far i have been able to slide past the AR "Powers to be" and not get featured so you never know if anyone is actually reading. I can say that I sure have inspired some strong emotion on both sides of the issue. I am happy you read down to see my #5 If it is Owner Occupied, Why is the Seller Selling? It is important becuase nearly  EVERY buyer agent will ask this question. It is how the Listing Agent responds though as to if that Listing Agent has done thier seller any justice. Today I wil dive into the subject and invite you back to read it. Have a great Day.

Apr 10, 2012 11:07 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Scott.  Thanks.  I love this type of post.  This is "Hard Core Real Estate" stuff. 

I'll read them.

Apr 10, 2012 11:12 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change
As a buyer's agent I ask questions too. It's surprising what a listing agent will convey, but it often aids in writing an offer that that appeals to the seller. Especially in a multiple offer situation. As a listing agent, I'm a lot more cautious. I can't blame a buyer's agent for trying to gain an advantage. Sometimes the answers convey much more about the AGENT'S moyivation than the buyers or sellers!
Apr 11, 2012 12:11 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Karen   Great comment.  It behooves all of us, buyer's agent and listing agent to LISTEN. 

Apr 11, 2012 12:39 AM
David A. Wheeling
RETIRED as of June 15, 2013 - Morganton, NC
After 30 yrs in real estate, I am now Retired

Hi Lenn, I also am amused at that question. When asked, I give a very simple answer: Because they are moving. I do not elaborate or speculate.

Apr 11, 2012 12:58 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

David.  That's really the perfect answer, isn't it? 

Apr 11, 2012 01:02 AM
Ron Climer
Keller Williams Realty Mountain Partners - Tryon, NC

   I don't get it . Is it the desire of the listing agent to keep the seller's motivation a secret?  If my seller was divorced, why would I want to keep that information from a buyer or buyer's agent?  If my seller was transferred across the country, what would be the upside of keeping that a secret?  If the seller has moved to a fancier neighborhood because their income has risen, do I want to conceal that from a buyer or his agent?  If the seller is being foreclosed on, do I want to keep that concealed?   How is concealing information from the buyer's agent going to help us get to closing?  Why would a listing agent conceal information about obvious condition problems.  In Florida, the agent does not have to pay for repairs. Why would an agent conceal them?   In seems to me if we cooperate, we can all get to closing. 

Apr 11, 2012 08:56 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Ron.  Two different scenarios in your response.

1.  Property condition disclosure.  That may be a matter of disclosure in many areas.  In Virginia, not so much unless it's material and then the agent must disclose.  However, disclosure in Virginia means, "THE BUYER HAS THE RIGHT TO INSPECT. . . . .". 

2.  Seller motivation.  Seems to me that the listing agent's job is to get the HIGHEST PRICE IN THE SHORTEST AMOUNT OF TIME for the seller.  Buyers, through their agents or directly, are not going to have incentive to offer their "highest and best" offer if they are aware of personal situations that would mitigate against making higher offers. 

The listing agent's job is to sell the real estate, not the seller's bio. 

I can tell you for sure I have obtained very good prices for home buyers simply because I learned of the seller's need to sell. Listing agents' except with permission of the seller/client shouldn't be helping buyers with negotiating lower prices for their seller/clients.

 

 

 

 

 

 

Apr 11, 2012 09:56 PM