There have been a lot of talk about the "Low Ball" offer lately. Pros and cons to writing them and working them. I am in the camp that ANY offer is an offer worth working, if at all possible.
But what about the "Vulture Buyers"? I call them this because they are the buyers who make it clear from the very beginning that they are looking for a "good deal." They will buy only in a situation where they can buy a home significantly under market value. They want to win!
They could be investors, or just buyers looking outside their real price range, hoping for a desperate seller they can use to get a REAL deal. The question I have for these buyers is this:
"Do you ever even think about the sellers"?
We all know what a tough market this is for sellers. Even in our local communities where the activity has picked up, the values are not rising in a commensurate manner. Sellers are really taking a hit on home values. For those who bought during the latest boom, this is NOT a paper loss...it's a real one.
The Vulture Buyers will often visit a home several times. Their agents will call/email to let us know they are "very" interested and to please give them time to submit an offer. Even though most agents know better than to alert a seller that an offer is coming (it's never an offer until it's in writing), sellers can hear the agent's name.....or actually meet the buyers.... and know that it's a second or third showing.
They get excited!!
These are people who clearly need to sell. They are not normally "cashing in" and going off to great adventures. They normally can not afford to take a bigger hit than they are already taking.
Then it comes....the offer that is 40-60% under market value. How do you think they feel? If this is not a short sale, they are disappointed, depressed, sad. And if this is a buyer who "would" come up...but just wanted to "throw it out there to see," these are also the sellers who are not going to respond well. They feel they are working with the Vulture Buyers. Those who are only out for themselves and not seriously working with market values.
This is not a game to sellers! This is important!
So if you are playing a game....I would just ask you to think about the real people, real situations, real families, real dreams on the other end of that Low Ball Offer.