Seller, Don't Start Second Guessing Yourself

By
Real Estate Agent with Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional TN Broker: 208698
http://actvra.in/49zr

Negotiating and strategizingSeller, Don't Start Second Guessing Yourself.

We have all seen it happen. The agent comes in with the most recent comps to discuss listing the house. A pricing strategy is discussed and staging and showing conditions are laid out. The seller is excited and on board and asks how long the agent thinks it will take to sell.

This question doesn't come easy. It is hard to know because we have seen beautiful homes priced right sit on the market for months. So the agent answers that it depends on the buyer pool, market condtions and competition. It could be rather quick or it could take weeks or months. You don't know until we put it on the market for buyers to see.

All is now ready and the house goes on the market. Thankfully the seller has done all the things requested of him to make the home show its best. The agent takes some great photos and launches the marketing campaign in a big way.

Then it happens. A call comes in and a buyer wants to see the home today. The seller scurries out of the house after making sure everything looks in order. The buyer stays a couple of hours and is really loving the house. He leaves with his agent to go put an offer together. The offer is sent to the listing agent and she notifies the seller.

The seller is so happy, happy, happy. Someone likes his house, boy that didn't take long at all. He thinks to himself that he did a really great job getting it ready and he has the best house on the block. Why shouldn't the buyer like it after all he spent thousands in upgrades that the listing agent said he wouldn't get back? He even had a professional stager come in and make it a showplace. This cost him lots of money too. 

The agent arrives to present the offer. The seller's enthusiasm has now cooled. The agent goes over the price and terms of the offer. The buyer's offer is just a little under full price and he asked for a condition or two. Now the seller doesn't seem nearly as anxious or excited. He is almost indignant and states, I think we priced it too low. That happened too quickly.

The agent explains that the correct pricing produced the offer. The seller says There have got to be more buyers out there that are willing to pay more. The agent remains calm on the outside but is getting tenser by the minute.

More of her negotiating skills are used to try to calm the seller and tell him what a good offer it is so he will be reasonable. The seller is digging his heels in, If the buyer wants my house, he will pay my price with no conditions. 

The agent encourages a small compromise here or there in a counteroffer. The seller says No. So a counteroffer is sent back at full price with all conditions removed. There was no giving at all on the seller's side. The seller again says, The buyer will pay my price or he can buy someplace else. There will be other buyers. We are not in that big a hurry anyway.

The Buyer interprets the counteroffer correctly and does just that. He buys a house down the street that has been on the market a few weeks longer where the seller would do a little negotiating.

Meantime, the listing agent continues with an aggressive marketing campaign but the word has gotten out through the neighbors and real estate community that this is a difficult seller that won't budge. When a contract is finally negotiated, the seller nets out  thousands less than anticipated and it took months to get it closed.

Seller, Don't Start Second Guessing Yourself. Be willing to negotiate and trust what your agent tells you all the way through.

Sellers in the Clarksville area, if you need an agent that can advise you on negotiations and protect your interests, then contact Debbie Reynolds at 931-920-6730.

 

Photo by markuso/freedigitalphotos.net.

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When you need Real Estate services in Clarksville TN

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 01/17/2014 12:16 PM
  2. Jeanne Dufort 01/18/2014 06:02 PM
  3. Roy Kelley 01/20/2014 07:26 AM
Topic:
Home Selling
Location:
Tennessee Montgomery County Clarksville
Groups:
Out Of The Box!
Lessons Learned
Diary of a Realtor
Be The Best In Your Field
Tags:
lessons learned
seller negotiations

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Rainmaker
399,685
Sondra Meyer:
KW Client's Choice Realty - Colorado Springs, CO
See It. Experience It. Live It.

This would be a funny post if it wasn't a true story.  This is the type of seller that inspired my post the other day about buyers not growing on trees. 

 

 

Jan 18, 2014 06:05 AM #46
Ambassador
2,182,460
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

It's like a rule of the Cosmos, if you reject the first offer you are destined to lose, and that happens far too often

Jan 18, 2014 06:21 AM #47
Rainmaker
1,673,225
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Talk to a seller who has a shelf life problem, place should have sold but for one reason or another has not. Three years waiting. Then stop your whining Mr Seller Johnny On The Spot. You priced it right in the sweet spot, were lucky, get on with your life. Then open the book about dog with a bone and looking down in the water. Don't lose this bone.

Jan 18, 2014 06:39 AM #48
Rainmaker
1,927,973
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

It is called GREED when I last looked. When you get what you wanted...Be happy about it

Jan 18, 2014 07:10 AM #49
Rainmaker
344,348
Marie Story
Keller Williams - Pinecrest (Miami) - Pinecrest, FL
Broker Associate, Pinecrest (Miami) Specialist

Richie, I hadn't thought of it that way; but ou are soooo right!

Jan 18, 2014 07:16 AM #50
Ambassador
2,445,914
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Wonderful comments folks. I hope many sellers read this and take it to heart. 

Jan 18, 2014 07:40 AM #51
Rainmaker
1,950,681
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

Debbie, Does this ever sound familiar.  I’ve been there with a seller. I even got offers $20,000 plus over asking with no concessions and no contingencies and the seller would not sell. 

 

Jan 18, 2014 07:44 AM #52
Rainmaker
518,115
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

It makes you wonder if the seller really wants to sell, or if they just want to feel vindicated.

Jan 18, 2014 08:00 AM #53
Ambassador
1,093,493
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Debbie - This is always a frustrating feeling. I had it happen on a house recently, and I'm relatively sure that they will net less (or take a long time to sell).

Jan 18, 2014 08:37 AM #54
Rainer
92,172
Cheryl-Anne Priest
The Real Estate Company Limited - Calgary, AB

Thanks Debbie for the excellent post.  The comments are good as well, especially the the dog with the bone theory.  A good one to pass along to a stubborn seller.

Jan 18, 2014 08:47 AM #55
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Agents who know their market, analyze the market, and price a home accordingly, know how many days on market it will probably take to sell. First impression on MLS are lasting: pricing a home slightly higher than market value hoping to squeeze out a few more dollars is going to take longer to sell. Less price reductions the better. 

Jan 18, 2014 10:31 AM #56
Ambassador
1,383,045
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

"too quickly" - no way! It means you priced it just right.

Jan 18, 2014 12:19 PM #57
Rainmaker
344,480
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Same can happen on the buyer side - put three contracts together this week. One of my buyers had her first offer accepted with only a minor condition change, one had to increase the price, but we did the deal within their target range with just one counter. Did we offer too much?  Absolutely not - we got great deals for both properties, by making informed offers that compelled the sellers to do their best to work things out.

Jan 18, 2014 05:48 PM #58
Rainer
219,059
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

It's so true, it happened so quickly because you priced it right! You get results when you do things correctly. And now the seller knows what happens when you don't do things correctly....you sit and sit and wind up taking less money anyway.

Jan 19, 2014 07:49 AM #59
Rainmaker
326,384
Karen Johnson, Realtor, ABR
Weichert, Realtors - Doylestown, PA
"Bucks County PA Homes"

Hi Debbie, excellent advice and you did price the listing right.  I have good news to share -- I finally got my first listing on Friday.  I am sitting the open today.  Fingers-crossed!

Jan 19, 2014 12:58 PM #60
Rainer
145,368
Andrew Payne Realtor® Richmond VA Homes For Sale~804-938-5257~
Virginia Capital Realty - Capitol, VA
Richmond, VA, Real Estate, SRES®, NAR Green

Debbie,

I've been told that as a rule of thumb, the first offer is most often the best one.  Sometimes, sellers may refuse to believe that's true, but all the seasoned agents in my office say it definitely is true.

Jan 20, 2014 07:35 AM #61
Rainmaker
92,682
Donna Cox
Better Homes and Gardens Real Estate - Rand Realty - Nyack, NY

This happens all too often. Here is an AR blog post I wrote last year to help sellers understand WHY buyers who put in an offer right when a home comes on the market should be taken very seriously - http://actvra.in/49JQ#sthash.bpBbq1To.dpuf

Jan 20, 2014 07:22 PM #62
Rainmaker
889,228
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

There is a lot depends on a listing agent negotiation skills. Buyer wants 'it all' for the lowest price possible, seller wants to sell for the highest price possible. There is nothing wrong or unusual about that. Negotiation can be tense in this market. We are responsible for keeping that buyer and seller together and reaching the closing table.

Jan 21, 2014 12:22 AM #63
Anonymous
MEL
"Meantime, the listing agent continues with an aggressive marketing campaign but the word has gotten out through the neighbors and real estate community that this is a difficult seller that won't budge." I'm confused. Who is telling the neighbors and real estate community that this is a difficult seller? Buyer and his agent can say anything they want. Listing agent better not have loose lips.
Jan 23, 2014 03:09 PM #64
Ambassador
2,445,914
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Mel, I can tell you that buyers talk and their agents will too especially when the buyer buys in the same neighborhood. They tell the story over and over to make a point. Even sellers will tell their friends and neighbors about the offers they receive. It happens quite often. The seller's agent is bound to confidentiality but there are many other people involved that have the loose lips as you say and the word gets out fast.

Jan 23, 2014 03:38 PM #65
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