Special offer

Treat My Seller With Kid Gloves OR ELSE!

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

Is your seller really that delicate?Treat My Seller With Kid Gloves OR ELSE!

...we'll take our ball and not play with you!

That's the key takeaway from some recent reading about a listing agent's experience with her sellers. 

One buyer presented an offer, a "lowball" offer, the seller took offense and refused to counter.  End of negotiations.

Another buyer came in with a "oh how we love your home and it's so special and so on and so forth" letter attached to their offer and the sellers were "charmed" and got the deal done.

In a nutshell, if anyone should be offended, I'm more prone to favor the first set of buyers as being the ones that should have been offended.  They presented an offer in good faith and were rejected without even an attempt to come to terms.

One of the early preparations when we're working with sellers is to let them know they're HIGHLY likely to get offers that may disappoint them, that's just the nature of how the game is played.  EVERYONE wants to get the best possible deal for themselves, and the initial offer is step 1 in the process.  The only thing that matters is the FINAL price and terms the buyer offers.  The buyers want to start at $1?  Go for it.  

An offer is an offer, period.  It's either acceptable or it's not. 

If it's not acceptable, counter (repeat as necessary). 

If it is acceptable, sign and accept. 

It's really that simple.

As soon as we as listing agents or the sellers start using terms like "lowball", we've already biased the negotiations to the negative side. 

The buyers liked your home enough to write an offer, that's a good thing, not a bad thing.  And if the sellers refuse to negotiate because they're offended?   Well that's a choice, and in my opinion a foolish strategy if you're a seller who wants to take that next step in your life.  How many buyers want to deal after you've extended them the middle finger salute?

There are plenty of valid reasons for a buyer to start low:

  • Cultural.
  • The home is more than a little overpriced.
  • They just "have to try". 

Every one of those scenarios can finish with a successful negotiation (we know because we've been there, done that on both sides of the table for each of those cases).  But for a negotiation to be successful, it requires BOTH parties to be willing to talk.  And sometimes it takes more than a single round of negotiations for either the buyer to realize they MUST have the home or for the seller to realize, yes, maybe we WERE expecting too much for our home. 

You still want to trade a big stack of money for our home?  Let's talk!

Serving Warren County's residential real estate needs,

Liz and Bill aka BLiz

Posted by

Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
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Comments(65)

Bobbie Smith
Stroudsburg, PA
570-242-1891

A "lowball" is better than no offer, just like you say, I agree.

Most of the time the negotiations can be brought to a mutual agreement and everyone is happy. To get offended and not try to negotiate is an unnecessary risk.

Great post Bliz!

Jan 27, 2014 08:31 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I try not to interject what I think about any offer because it's not my house. I send all offers to the seller without any input whatsoever and ask them what they think. What they think is the most important thing, not what I think. Sometimes, I have been astonished at the responses. And sometimes they take the offer that I might have believed was way too low.

Unless, it's a short sale and then all bets are off.

Jan 27, 2014 09:06 AM
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

I always tell my clients, "you can't blame them for trying" and I usually get a laugh. Then we try and make a deal happen!

Jan 27, 2014 09:26 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

My thought then and now, would be to counter with an offer only slight less than asking and if they come back still low, do the same thing

Jan 27, 2014 10:11 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Bobbie, Similar thought here.  We do our best via marketing, responsiveness, etc. to generate an offer.  Should it just be thrown away because the starting price isn't where the sellers want the buyers to start?  Let's just get them to where the sellers want them to END, that's what's important.

Elizabeth, Short sales are their own special creatures :)  And we've also had sellers take offers that we were positive could have been brought up, but as you say, IT'S NOT OUR HOUSE.  Seller says sell, we're going to get it done for them.

Shannon, I like the way you approach that!

Ed, Just keep the dialogue going, perhaps the buyers will get the clue they need, or perhaps a better offer will come in while dickering with the first buyers.  Either way, the sellers are in a better negotiating position than a straight rejection.

Jan 27, 2014 10:19 AM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Well done my friend. Setting expectations from the get go is so important and I always try to have my sellers counter an offer, no matter how low just to keep it going. More often than not, it's an opening ploy and...if the buyers are serious and...if hey have dione their homework with a realistic and savvy agent, a deal will ensue. If not then so be it but sellers and buyers should try harder to be more realistic and it would help if the respective agents did the same!

Jan 27, 2014 11:31 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Sometimes it is a dance.  It is important to set expectations as you point out so that the sellers don't simply reject an offer that may be the "best" offer.

Jan 27, 2014 11:34 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Russell, It's all part of doing our job right, and I loved some of the phrases mentioned in the comment thread used to defuse what could easily turn into a volatile situation if the listing agent isn't skilled with addressing a disappointed sellers concerns and emotions.  I've been the writer of many "lowball" offers, and in general, it's just the opening ploy like you mention.  If they're REALLY serious about the home, they'll move up.  If just fishing, well that usually doesn't take long to finalize the negotiations and walk away.

Jan 27, 2014 11:39 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Joan, If it's not the best offer, at a minimum, it's the best offer we have to work with for now, so why throw it in the trash.  Work it and maybe the best will happen.  If not, we'll continue working towards the next offer.

Jan 27, 2014 11:42 AM
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

My advice to sellers is to counter, no matter how bad the offer appears.  Not countering kills all possibility of getting to yes. Not all offers lead to yes, but 100% of offers with no counter lead to no deal.

Jan 27, 2014 11:51 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

BLiz

Sage advice I'd say. I think it is an essential discussion to have with sellers about buyer behavior and what can happen so they are prepared and can respond in a reasonable manner. I guess I don't get the NO RESPONSE approach at all. A counter at leat keeps you in the negotiations, and you just don't know what can happen.

Jeff

Jan 27, 2014 12:00 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Jeanne, Exactly!  Saying NO only guarantees there will be no deal, but countering at least provides an opportunity for success.

Jeff, I can't wrap my head around the no response approach either.  Keep the talks going, anything can heppen from there, and we've seen some unexpected deals come about that based on the initial offer you'd have thought would have no prayer of making it to the closing table.

Jan 27, 2014 12:19 PM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

An offer is an offer. Hopefully you can get both parties on the same page and turn an offer into a contract.

Jan 27, 2014 01:13 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Bill, Exactly our hope with every offer.  They don't all work out, but at least it was given best effort.

Jan 27, 2014 07:15 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Dialogue of any kind can lead to something...If someone goes first, then someone should go second and so on...Agents have to do more than just answer their phones...I remember kids saying to other kids..Do you want to play? and off they went playing...Whats the problem here? Lets play!

Jan 27, 2014 10:16 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Richie, Exactly!  It bothers me when some agents think they have the only ball in town and they control the game.  It doesn't work well when that's the attitude.

Jan 27, 2014 10:23 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I couldn't agree with you more - an offer is an offer.  And you're right, buyers these days all want to at least TRY for a "bargain."  I call it the Wal Martization of America...it's a trend that is apparently here to stay, but it doesn't mean both sides cannot come to an agreement that offers VALUE to both. 

Jan 28, 2014 01:19 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Susan, Most buyers aren't even interested in the comps when it comes down to it, or if the home is EXACTLY right priced.  They want to be able to tell their friends they got $xx thousands of dollars off.  And when that part fails, either they miss a home they wanted, or they realize they're ABOUT to lose a home, they realize they need to do what it takes (within reason) to get the home under contract.

Jan 28, 2014 01:23 AM
Zac Dennehy
Fairfax, VA
Northern Virginia Loan Officer

Informative blog. Thanks! I will share this with the Realtors I know.

Jan 28, 2014 03:47 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Zac, Glad you liked it!

Jan 28, 2014 03:51 AM