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So Your Buyers are Unwilling to Negotiate?

By
Real Estate Broker/Owner with Franklin Homes Realty LLC

So Your Buyers are Unwilling to Negotiate?

So Your Buyers are Unwilling to Negotiate?The other day I shared a post about a listing agent who was waiting 30 hours to receive an additional offer.

We submitted our offer on Sunday evening. It was set to expire at 5 p.m. on Monday evening. At 4:55, I sent a text asking the listing agent if they were responding to our offer. He said the seller was on his way home from work and they would respond ASAP.

At 7:10, I still didn't have a response. When I contacted the listing agent again, he said the seller didn't have time to get to it and they were still expecting another offer that hadn't been received. They had been waiting for that offer since 2 p.m. on Sunday.

I explained that our offer had expired at 5 p.m. but since he had told me a response was coming my client told me to wait to see the response. He goes on to say, he thought the expiration was for 8 p.m. and that's why they hadn't responded. I told him he should have looked at the offer more carefully. He said he'd get back to me by 8. My client wanted the house so she had given me the authority to extend the time.

At 8 p.m., I get a Multiple Offer Notification giving us until the next day at 6 p.m. to submit Final and Best. My client was ticked and really wasn't sure the seller actually had another offer in hand. She felt they were trying to solicit a higher offer rather than just countering to our offer. She decided to let the deadline pass without nibbling. Our previous offer had expired so I didn't contact the agent. 

At 6:05 p.m. Tuesday, I get a call from the listing agent.

Listing Agent: I was just calling to see if you are letting your current offer stand or submitting a Final and Best.

Me: No we aren't submitting a Final and Best and since our offer expired yesterday, I felt no need to contact you. The buyer has moved on.

Listing Agent: So your buyers are unwilling to negotiate?

Me: No, my buyers were perfectly willing to negotiate but your client never countered to their offer. Instead he waited until another offer was received and then hit the buyer with a Final and Best notification. Your client was the one who wasn't interested in negotiating or he would have responded to the buyer's offer by the expiration. 

Listing Agent: Well the seller was unwilling to take anything less than a full price offer.

Me: So I am correct in saying, he was the one who was unwilling to negotiate. Instead he used my buyer's offer so he could send out a Multiple Offer Notification and ask for Final and Best. Basically, driving up the price of the offers.

Listing Agent: Sorry you see it that way.

The Franklin TN housing market is a tough one for buyers right now. Sellers hold all the cards or at least they think they do. The reality is that buyers have options as well. In my opinion, it's best for buyers to just walk away if they haven't received a response to their offer by the deadline. Unfortunately, buyers are so worried they'll lose a home, they ignore that counsel.

Take the advice of your buyer's agent. Then when you don't get the house, at least the seller won't be getting a better offer because he used you to drive up the price.

Posted by
Tammie White, Managing Broker/Owner
CLHMS, CRS, GRI, SFR
Franklin Homes Realty LLC
Franklin, TN
(615) 495-0752 
GET REAL. GET LOCAL.
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Franklin Homes Realty LLC. Any party who uses this material without the written permission of Tammie White is subject to copyright infringement and possible lawsuit.

Comments(52)

Steve Davis
Davis Coastal Properties - Carlsbad, CA
Carlsbad CA

Tough time for Buyers and ethical agents. This too pass in time.

May 16, 2014 03:00 AM
Tessa Skeens
Hampton ReDesign, Home Staging and Redesign - Grand Junction, CO
Staging For Realtors, Builders & Investors

Tammie, if someone is going to mess around with you upfront before you're even IN negotiations, imagine what it will be like if you DO get that far. Like you said, better to walk.

May 16, 2014 03:25 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

While you were well within the correct procedures sometimes in an effort to be right you can be wrong.  Working with difficult people is what separates the good agents from the bad.  I know you to be a good agent.  If your clients were interested in the house it is our duty to put aside right to be correct in getting what our clients want.  I had a horrible situation a couple of weeks ago where the agent was doing things that were illegal. Instead of getting made I staid focused on what my clients want.  In the end we bought another house.  This is our delimma and you know the right ways and did the right things.

May 16, 2014 04:04 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Sad that this is happening again in our market. Agents always seem to not be able to handle offers correctly in the spring for some reason. Your buyer didn't take the bait so it was well played.

May 16, 2014 04:56 AM
Tommy Miles
Miles Realty Group - Weatherford, TX
Builder/Realtor®

This type of thing has happened to us several times over the last few years with one agent in particular who handles REOs for FNMA.  The Agent may or may not summit our clients offers to FNMA, holding out for a better offer.  At times the agent has insured that investor friends bid just a few more dollars than our client.  The Agents unethical behavior has hurt several deal of our to the extent that we try to shy away from any dealings with the agent at all.

May 16, 2014 05:15 AM
Donald Hester
NCW Home Inspections, LLC - Wenatchee, WA
NCW Home Inspections, LLC

Tammie, Great post and thanks for sharing. I think it sad that people do not treat each other properly. If they did not like the offer they should of responded in the proper timeframe instead of that tactic.

 

Also doesn't the listing agent have a bit of a hand in this. What advice are they giving their clients?

May 16, 2014 05:27 AM
Anonymous
Roz Pastrana
So what happens when the buyer refuses to walk and then blames everyone involved for losing on another property that he never told me he was interested in? Had he told me he was interested in another property, for various reasons I would have certainly encouraged that route rather than drag on with the original property. Story is that I recently had a buyer put in an offer. I called the other agent just before deadline and he told he had been unable to contact his clients, one of whom is out of the country. You would think that professional courtesy would dictate that he give me a call, shoot me an email or text to let me know things were not going as planned. Buyer wants to stay in the deal and wait for response. I don't like to throw a fellow agent under the bus because it reflects badly on the rest of us but after a few days, I tell the buyer, we have no contract, its difficult for me to get a response from the listing agent and when I do its always a promise that its coming and it doesn't. I reviewed the situation with the buyer and ask him to please consider how he wanted to proceed". Seven days later, I am finally very direct with the buyer and tell him he should walk away and not wait any longer. Now the buyer is angry and upset, ranting and raving. For some reason wants to continue to beat a dead horse. Blames me because he thinks I was stringing him along. Doesn't want to hear that a verbal agreement does not constitute a contract. I spoke to our managing broker who told me to let him go. I want to but he keeps coming back. I'm not quite sure what he's after.
May 16, 2014 05:32 AM
#45
Deborah Newell
Berkshire Hathaway HomeServices Towne Realty - Virginia Beach, VA

Sellers as well as buyers have to be willing to negotiate sometimes, BUT agents have to be honest and up front and let everyone know what's going on! Bet there wasn't really another offer! Did you follow up to see? Curious.

May 16, 2014 05:46 AM
Chrystal Safari Roy
Real Estate Realty LLC - Charlotte, NC - Charlotte, NC
Luxury Property Specialist

Tammie, you called it!  'So I am correct in saying, he was the one who was unwilling to negotiate. Instead he used my buyer's offer so he could send out a Multiple Offer Notification and ask for Final and Best. Basically, driving up the price of the offers.'

I made an offer on behalf of my sellers in a market with CLEAR similar comps in the last 6 months in the SAME neighborhood, but because the listing agent had groomed the seller to think their property was worth more based on a faulty comp outside the neighborhood she had personally sold and that an appraiser described as inappropriate and subject to creating a market spike - a big No-No.  

The 'listers' rejected our offer.  Later discussions with the agent revealed that the sellers were only going to take the full (and inflated) price (which can't be substantiated by professional appraisal).  

In our market, we are obligated not only to disclose 'material facts', but also 'facts material' to the transaction, for example, that the seller is only willing to take full price.  The listing agent didn't do that.  It was a big waste of everyone's time, and not best practices.

 

May 16, 2014 06:52 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

#45 - maybe give your guy the card of the other agent and let HIM deal with it. You get a Referral fee tho...

May 16, 2014 02:03 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

I am also glad the buyer walked on this one.  Many Sellers are playing the odds.  This time the Seller may have lost the bet.

May 16, 2014 03:30 PM
Andrea HoffDomin
Florida Dream Homes Realty - Fort Lauderdale, FL
- in Real Estate always on your side!

Nice post but the question is not who is right and who is wrong. The question is what does our customers want and are they ready to move.

We as professional need to give them direction what their options  are, what is the next step for them and it is their choice what they decide. We have to live with that decision and deal with it.

Greetings from Fort Lauderdale, Florida

May 16, 2014 07:19 PM
American Brokers Realty Group
American Brokers Realty Group, Inc - Cape Coral, FL

This is a fantastic super well written blog.  I can't wait to read more like it in the future!

May 16, 2014 08:31 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

It all comes down to motivation on the buyer and seller sides of the offer.  As an agent you do what your client wants to be do. Not know if there was another offer or the outcome, it is difficult to know what the real situation was...update us later.

May 16, 2014 11:09 PM
Cathy Wolters
Wolters Realty & Property Management Company - Cocoa, FL
Your Brevard County Property Management Expert

Tammie, interesting post and interesting the way the listing agent tried to say the buyers were unwilling to negotiate. 

May 17, 2014 02:14 PM
Deleted Account
Fort Myers, FL

Great post Tammie!  About a month ago, I ran in to a very similar situation.  My client had an offer in on a home a little below the listed and the listing agent said they had two other offers, one at the listed price and one above it.  Just like you, it went past the response deadline.  I got an e-mail for my clients to submit their highest and best offer.  My clients told me, they got their highest and best offer in.  Three days later, I called to see if they accepted the offer and the listing agent could not give me an answer, so my clients rescinded their offer.  Well, a month later, it was still an active listing, but it did just go pending about a week ago.  I wonder about the ethics involved in this deal or should I say non-deal?

May 22, 2014 02:52 AM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Thanks for this great post today.  What is it thursday already? Wow, almost the weekend and have yourself a great one!

May 22, 2014 10:27 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

 Very interesting post and very interesting comments, Tammy.

 Of course, it was not a satisfactory experience but the worst part – at least the way I see it – is that your client did not get the house that they wanted.

 

My question is: did the walk away over price or over principal? If they would have offered more, they should have. If they were simply peeved over the antics of the seller and seller’s agent…well…they are still looking for a home…right?

May 22, 2014 12:51 PM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

Multiple offer can create an aura of discontent. I communicate prolifically and promptly. It helps, but some one always ends up upset.

Nov 02, 2014 06:44 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning Tammie White time is always of the essence in wrapping up any negotiation session.... people get frustrated and nasty....and then go on to the next thing.... agents need to be the guide and keep things moving along and responses are needed.

Dec 21, 2014 07:59 PM