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Offers, what are they thinking?

About a week ago I received a call form a agent eager to show one of my listings, she called me back to let em know they would be making a offer and all sounded well.

I did receive the offer and it was for $85,000 on a $190,000 home. I spoke to the agent and jokingly asked if she forgot a one?

What is the logic in doing something like that. looking to steal something, unrealistic buyers or agents that are so un versed in the business that they don't know any better or even worse don't care?

The offer was of course presented to the seller who is still laughing.

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Posted by Andrew Monaghan CRS, GRI, EPro Associate Broker on 01/23/2008 01:40 AM

Comments (12)

lowball offers, arizona, reo

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12 Comments on Offers, what are they thinking?

JAN

2008

Now that was a very unrealistic buyer! I wonder if the buyers agent was embarrassed to present the offer?

I have several clients who were under the mistaken impression that bank owned properties are nearly "free" because the bank wants to unload them quickly. I had to do some educating on the process and show them how the lenders are suffering and some of them are on the verge of bankruptcy.

I blame a lot of this attitude on the media. They keep saying how bad things are for sellers and showing the few outrageous cases where someone is offering a free car if you buy the house or something like that.

That buyer is nuts and I hope the buyer's agent was submitting the offer just to be "obedient" and fulfill their fiduciary duties to the buyer. I hope someone who is intelligent enough to be licensed would know how ridiculous that offer was!

I'm just curious, did your sellers even want to counter or did they just take a pass?

I agree, that was an unrealistic buyer, and I agree with Patti Ann when she blames part of it on the media. There seem to be a lot of people that believe that sellers are so desperate that they are willing to give away their properties. It would be nice if some people could be a little more realistic!

Well at least the agent actually showed the property. I get offers like this from time to time and yet no showing ever occurred. Don't people have better things to do with their time?

I've had quite a few offers like that this past year. I think it's buyers trying to find out who is really desperate to sell. I've also been on the other side as a buyer's agent, and no matter how hard I tried to explain the value of the home, they still wanted to write a "lowball". With that in mind....we can't always blame the other agent as we have to write the offer for what the buyers ask us to write it for.

That is ridiculous. Question, should we look at it more positive because at least he got an offer???

You called back! That in itself is amazing. I would have not even given her the time of day.

JAN

2008

I have just "parted" from a buyer that had me submitting low ball offers. I sell REO's and I "know" what the bank will do when they receive these offers. Why people want to waste time is beyond me.

But, just to repeat what some have said, it's not always the Agents fault. I'm sure they are embarrassed about it but can not really tell you that without, in some way, being irresponsible to their client. And you do need to call back, because they need to give a bona fide response to their client who will hopefully, adjust their offer and resubmit.

JAN

2008

low ball offers are a waiste of time and energy. What I really like is when they are tooo lazy to even write an offer and send over a letter of intent.

JAN

2008

Seen a lot of that here too. People are just seeing what they can get away with and are rebuffed when their requests are denied.

Andrew, I was informed today that I'll be getting a 400,000 offer on a 639,900 listing- short sale. It was already negotiated to 650,000- Countrywide's bottom line in November, when the buyer walked after approval. She says he is going to write the offer anyway. My sellers will, of course, counter before we would even send this to the bank. Waste of everyone's time. Also, writing offers like this affects an agent's reputation. If I were the buyer's agent, I would refer him to someone else, and not work with him.

Wendy

FEB

2008

I've seen several short sales that CLOSED 30% less than what was owed on the property. That is quite a bit better price reduction than what I'm seeing from most REOs.

I would have loved an offer of any amount on one of my REO listings that went down to $265,000 prior to selling at auction for $170,000. I doubt the bank would have taken less than $250,000 while it was listed but at least they got rid of it.

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