How many times have we heard these words from sellers "I won't accept an offer on my home under xxxx.  It happens more often than you think.

Speaking to many real estate agents who have been around for a long time I was told that about 90% of the time the sellers live to eat those words and in many instances the first offer is usually the best. I have seen this happen many times myself and sometimes the price paid is very high. I know of one case where the loss was about  1.5 million dollars.

Does it make sense to hold out in this market, ignoring the concerns of the real estate professional you hired?  If your dentist advised you that you had a cavity that needed filling would you ignore his opinion?  Of course not, as the consequences would be extremely painful.  So, why would you choose not to listen to the real estate professional you hired to help with the sale of your biggest investment? Yet I continue to see this type of a mistake.

Here are a few points to keep in mind if you decide to go down this road.

  •  Your house is only worth what someone is willing to pay or in other words what the market will bear.
  • It is worth what the bank will appraise it at, if financing is required.
  • Agents market your home to facilitate the sale but you Mr. or Ms. Seller will need to be part of the negotiating team; drawing a line in the sand won't work.
  • Keep in mind that with high inventory and the days on market increasing you are in a Buyer's market.

So will you be the next seller to lose big? 

 

If you are thinking of seller your home and you are willing to take my advice as to what your home is worth please call or email me for a consultation. Jennifer Fivelsdal -845-758-6842 - jfivelsdal@hvc.rr.com

 
This post has been included in New York Information Dutchess County, NY Information

19 Comments on I Won't Accept An Offer On My Home Under xxxxx

FEB
17
2008
 Yes, a good system in your listing presentation is where this can be addressed.
10:35pm • #1
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Jennifer, I hear this all the time and it is stupid, stupid, stupid.
10:36pm • #2
135,739 Points 25 Featured Posts Outside Blog

Holding out for a higher price especially when the first offer is pretty close most often is foolish. Yet people do it and regret it all the time. The concept is somewhat similar to people who go on strike for a small wage increase. How many hours will it take to make up the loss of revenue for the small raise you get. Now I am not saying people dont have the right or should not attempt a strike. I am just saying that it does not really make economic sense unless you plan to stay there for years eventually retiring from the same company.

Sorry got off track a little with the analogy. Oh Well.
10:40pm • #3
188,397 Points 31 Featured Posts Outside Blog Hit Router
I think it just comes from not understanding that real estate is a fluid market. I use the stock market analogy. I've love to sell my microsoft stock for 100/share. But the market is only bringing $29 (or whatever it is). It's tough because these folks have lost money they never really had.
10:42pm • #4
I agree that we have all seen this happen time and again.   I am amazed at times.  Pride gets in the way so much.
10:43pm • #5
Words of Wisdom Jennifer, great blog.
10:45pm • #6
424,069 Points 48 Featured Posts Localism Sponsor Outside Blog

Jennifer,

As a loan officer, this part of your blog is the biggie:  It is worth what the bank will appraise it at, if financing is required.

Mike in Tucson
10:51pm • #7
7 Featured Posts

Yesterday I got to hear the old line:  "We're not going to give it away"!   *sigh*
11:39pm • #8
261,871 Points 26 Featured Posts Outside Blog
I often tell my sellers that use that sentence - remember that most often your first offer will be your best offer - and it is true more often than not.
11:42pm • #9
FEB
18
2008
255,337 Points 34 Featured Posts Localism Sponsor Outside Blog

You sure speak the truth Jen! I'm dealing with a couple as we speak that have just about buried me. Our negotiations have included a donation of our own compensation to help make it work. They just wouldn't go below xxxxxx! It was grab the sale now or maybe never get one!

Now we have to go through the process of the appraisal...maybe bumpy roads ahead. Later in the rain~Deb
1:44am • #10
Jennifer - Well said!  I agree that the first offer is usually the best offer.
5:30am • #11
134,956 Points Outside Blog
I have heard this as well.  I usually try to explain the risk in holding out.  I have a seller right now that is working on their 9th month on the market and they are really wishing they had taken some of the offers they turned down earlier.  No matter what they say the bottom line is I still present all offers just the same.
6:42pm • #12
Great post. Some day all the sellers out there will realize that we are trying to help them get the most money for their home instead of trying to pull a fast one.
6:48pm • #13
226,566 Points 26 Featured Posts Localism Sponsor Outside Blog
I went away for a weekend and came back to catch up on some great posts. Jennifer, you've been busy blogging - this was another great one. It's hard working for a seller who is in denial. Sometimes they need 2-3 low offers before they realize it's the best they can do.
6:58pm • #14
I think sellers love their home soooo much that they can't see past someone else not loving it just as much.  It will rarely be worth that much to anyone other than the people who already live there.
7:12pm • #15
FEB
19
2008
469,285 Points 13 Featured Posts Localism Sponsor Outside Blog

Thank you for your comments, I will respond to each one as I can.

Have a very productive day and don't forget to have fun while doing this. 

 
7:37am • #16
FEB
21
2008
469,285 Points 13 Featured Posts Localism Sponsor Outside Blog

Ross - I agree, but sometimes later the seller conveniently forgets the conversation.

Missy - I so agree, it is unproductive and costly.

Herb- I think you analogy drove home the point.

Colleen - I love your analogy also.  Yes REAL ESTATE IS A FLUID MARKET

Brenda - Not just pride, but I often wonder why such a person hires a real estate agent.  it is like been told by your surgeon you need to have an operation but ignoring the advice.

Eugene - Thank you

Mike - That is something sellers fail to pay attention to.  It does not matter how much you want, the appraisal  and what the bank will finance is more important.

Thesa - The first offers is usually the best offer.

Debra - These are the type of sellers who usual stress you out.  I refuse to give up my commssion, I work hard and since they would not hesitate to pay for other services I think my time is also valuable.
8:40pm • #17
469,285 Points 13 Featured Posts Localism Sponsor Outside Blog

Joe - I think we have all proved that theory.

Kimberly - This is a scenario that plays out in all markets.  Yes presently all offers is important.

Sandra - In most cases ignoring the advice of the agent can be costly.  Sometimes seller comes to the realisation when it is too late.

Carol - The denial phrase can really wear us out.

Latonia- excellent point.
8:50pm • #18
FEB
23
2008

JENNIFER,

AS AN APPRAISER, I HAVE BEEN HIRED ON NUMEROUS OCCASIONS TO DO AN APPRAISAL TO SHOW THE CLIENT WHAT THE HOUSE IS "REALLY" WORTH WHEN THE REALTOR COULD NOT SEEM TO GET THEM TO SEE THE MARKET.  SOMETIMES MY (THE APPRISER) OPINION IS HELD IN HIGHER REGARD (RIGHT OR WRONG)...JUST A THOUGHT.
8:00pm • #19

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Jennifer Fivelsdal, Fishkill NY

Rhinebeck, NY

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Keller Williams Realty Team - Real Estate Agent

Address: 1401 Route 52 Suite 100, Fishkill, NY, 12524

Office Phone: (845) 249-2945

Cell Phone: (845) 594-9947

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