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Keep it Real Folks!

By
Real Estate Agent with Associate Broker at Berkshire Hathaway Home Services Georgia Properties 256152

I heard a story from a client's father yesterday that I thought might prove useful.

He was once trying to buy a home from a seller that was being particularly stubborn on negotiation. The seller's agent had tried logic and reason and patience, but was making no headway. Finally, somewhat out of frustration, she said to the seller, "If you turn down this offer, which is perfectly reasonable, you are effectively buying this house from yourself. The question I ask you is, if you were this buyer, would you be equally generous with your own money in meeting what are your current expectations". He responded that he would. So his agent told the buyers that negotiations had apparently come to a standstill.

The next day they got a call saying he had reconsidered and would accept their last offer. I think I may borrow that technique!

Human nature is to expect more than we give in most cases. If you were a "C" student, you tell your kids they should make "A's". The neighbor's grass is never quite green enough to look better than your chickweed patch. The 1985 vintage home you're selling is always a significantly better investment when it's on the market, but the new home on warranty is always overpriced.

It's one thing to sell in a seller's market. It's quite another to create your own seller's market. Keep it real folks!

Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

It's amazing what happens when either side of the equation can really see the situation from the other side.  That's a tough thing to do but very effective when it's accomplished.

May 25, 2013 02:16 AM
Marc McMaster
RE/MAX Centre Realty - State College, PA
Putting my clients before myself

Every offer is essentially a competing offer...what the seller is willing to keep the house for and what the buyer is willing to pay for it. 

May 25, 2013 02:27 AM
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

So true Ron! I think at one point or another, we all need to stop and think about the other side of the story.

May 25, 2013 02:39 AM
Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad
I hear ya, I just wish the buyers in San Diego would keep it real, paying as much money for homes today as in 2004 and approaching 2005. Didn't we learn anything from the nasty down turn that almost crippled the world?
May 25, 2013 02:57 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Many owners are still pricing their home over market value way too much. We can test the market but do not over kill it.

May 25, 2013 03:17 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

What an interesting story.  I like the thought of creating one's own seller's market.  Could we have used that approach over the last few years? Probably not, but this is one to tuck away for one idea of how to deal with a difficult seller.

May 25, 2013 04:25 AM
Charlie Dresen
The Group, Inc - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Buying and selling real estate is emotional. Some people are just a little too emotional about it. 

May 25, 2013 04:51 AM
Dick and Dixie Sells
Sells Real Estate, LLC - Trinity, FL
Realtors, Tampa Bay Florida Homes For Sale

Ron Congrats on the feature. This is great food for thought. Just had a very difficult seller on the other side  of the transaction and wish it had worked out, but bet a month from now the seller will wish the same thing.

May 25, 2013 04:53 AM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Ron, you are absolutely correcdt.  Keep it real.  Have a great weekend.

May 25, 2013 07:18 AM
Eric Michael
Remerica Integrity, RealtorsĀ®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Ron, you're right. The sellers want the buyers to over pay and the buyers want to sellers to give it away.

May 25, 2013 08:05 AM
Sheila Morales
Kauai Property Shop - Kapaa, HI
Your Kauai Hawaii Agent

I think we've all faced this situation at one time or another.

It's amazing that you can show buyers and sellers the exact same list of comps and they see entirely different prices.

This is why I have started to purposely not sort the comps by price.  By mixing them up it forces the client to actual look through the comps and not just the top or bottom of the list.

Of course this is no help with unreasonable clients.

May 25, 2013 09:33 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I try to cover this in my listing presentation when we talk about how various people will look at the pricing. I want them to look at pricing from the buyer's point of view as well because it's the buyer's point of view that will make or break the deal.

May 25, 2013 09:38 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Ron,

Excellent advice on how to approach a reluctant seller.

Rich

May 25, 2013 10:41 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

I am having the same problem & have been having the same problem for 30 years. I have 4 offer on a home with almost the same identical price but that is not good enough for my seller. Foolish people will always net less later. Besg offers come in the begining.

May 25, 2013 11:08 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Ron   I think you handled this very well.  It is sometimes helpful for each party to put themselves in the shoes of the other part.  It is a very good technques in many cases.

May 25, 2013 11:20 AM
Helen and Larry Prier- Re-Max Gateway - Residential Real Estate
RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA
Anacortes & surrounding Skagit & Island Counties

Ron, It is tough sometimes to work with unreasonable Sellers but this is a good tactic. I will remember it.

May 25, 2013 01:06 PM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Sellers are too often unaware of what the market will bear for their home.  Putting them in a buyers shoes is one way to get them to see things more realistically.

May 25, 2013 02:56 PM
Aaron Hofmann
Atlanta Communities - Smyrna, GA
aka Mr. Smyrna Vinings

No matter what market we are in, buyers and sellers understanding of the current market will vary. Some anticipate the changes better than others and some just never really get it. The sellers who are pricing too high in today's market, were probably the same sellers that tried to sell three years ago and were overpriced then as well.

May 26, 2013 10:55 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

I have a similar situation, only when the seller took too long to come to their senses, and the buyer had fell out of love with his home.:( Just happened today.  WAH!

May 27, 2013 07:12 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Ron - I think this technique makes sense as it gives the seller another way of looking at things.

May 27, 2013 04:33 PM