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Yeahhh! We got an offer!

This morning I received a call from my office informing me that I got offer on my listing. I thought to myself, "Really?, I didn't get a call from the REALTOR, letting me know to expect one, I didn't even know that the home was shown". So I scurried on down to office, eager to see what I anticipated to be a low-ball offer, and guess what?, the offer was far beyond what I could have ever imagined. This was the mother of all low-ball offers, $85,000 under the asking price. Now, if we were talking about a home listed over half a million dollars, that might make sense to me, but this home is listed is the mid 200s.

Of course this offer is coming from an investor, and it did cme attached with a short sale addendum, so they were obviously under the impression that my clients are trying to avoid foreclosure, which is definitely not the case.I had no idea that investors were making such low offers, I expect the usual $30,000-$50,000 under asking price, but I'm think that $85,000 might be a little extreme. Or am I wrong? I do a CMA on all my listings and I also update my CMAs every month or two, but I know it's buyer's market, so realistically, I expect to see offers that may be lower than we anticipate.

I plan to present the offer to my clients, and I will definitely encourage them to make a counteroffer, one that is fair to both parties, because that's what we as good agents do. No offer is a bad offer, right? I don't expect that we will come anywhere close to meeting in the middle but at least we will try.

So, am I wrong? I need your feedback.

Posted by Vinnie Vacca - Glendale Arizona - Arrowhead Ranch on 01/07/2008 12:56 PM

Comments (9)

offer, realtor, home, counteroffer, cma, client

9 Comments on Yeahhh! We got an offer!

I would make a counteroffer. I think you should counter them all basically.

01/07/2008 01:06 PM

by John Walters (Specialized Real Estate)

I typically advise my clients to start at 10% under the listing price. They don't always listen. Some people are just stuck in the low ball mindset and are willing to put in numerous offers until they finally find that person who is desperate to sell. A call to the listing agent can usually save all parties involved a great deal of time and effort.

01/07/2008 01:06 PM

by Israel Barden (Coldwell Banker Mountain Gallery)

Are you wrong to do your job? NO! Definately open the lines of communication. I was just talking to a seller this morning about some of the offers I have seen lately. Now, we all know that there is low but COME ON - then there is "Are you kidding me?" I feel your pain!

01/07/2008 01:08 PM

by Leesa L. Finley, REALTOR® (Circa Properties)

I always try to use the initial offer (even when its 'bad') as the starting point. Getting your sellers to look beyond that 'insulting amount' is the tough part. We also find it helpful to do CMA's on a monthly basis just to keep up with the changing market. I'd say you're on the right track.

01/07/2008 01:11 PM

by JenRan Realty, LLC

I guide my Buyer Clients to offer the true market value. If the property is $100,000 more than the true realistic market value, then we are going to come at least $100,000 under list price.

I never go by a "percentage below list", because that still could be higher than market value.

Sometimes, you cannot blame the Buyer for trying. After all, that's what the Buyers are hearing from the news media- that the market is bad so put in low offers.

My local paper even had an article about low ballers actually getting offers accepted!

01/07/2008 01:12 PM

by Rick Tourgee - Provincetown and Cape Cod (Century 21 Shoreland)

I closed an contract once on an offer that was initially considered too low by the seller. Eventually, 2 mos. later we ended up in the middle and made the deal. I think the only reason it closed was becuase the "wife buyer" really wanted that house.

01/07/2008 01:17 PM

by Mary Bowen, Real Estate Agent, The Woodlands (Coldwell Banker United)

I believe a good agent gets their clients to counter every offer, even if it is full price. I would say you are doing the right thing.

Just curious, why did the investor think your client was in danger of a foreclosure? Did they have a default recorded on the deed?

01/07/2008 06:05 PM

by Joe Pecoraro , Realtor-Big Bear Lake Ca (Coldwell Banker, Mountain Gallery Realtors)

Hi Vinnie,
Wow! That hurts...$85,000! Counteroffer is definitely in the pipeline and hopefully the two parties can find a meeting place. Lots of luck.

01/08/2008 05:05 AM

by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist (Kingsbridge Realty, Inc)

Reminds me of a TV show where something like this happened. The counter was higher. Every time the buyer tried to go lower, the counter went up.

Way to get an offer!

01/08/2008 01:57 PM

by Matthew Rosov, Certified Mortgage Planning Specialist (Envision Lending Group)

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