Believe Me! I Know A Lowball Offer When I Submit It….
I’ve been around this real estate thing for a while.
So, I’m well aware of lowball offers and I know when my buyer clients choose a price that I may consider too low…
But it’s their call
When an offer is submitted, a seller has options:
Accept it as is -- Yeah! We like this option. A lot.
Counter the offer - a change in terms or price or exclude this(or that). Not perfect - but, hey -- we’re still in the game.
Reject the offer - No Acceptance. No Counter. Nada. Zilch. Zero. Butkis. This happens. When given a choice -- we prefer this option is not on the table.
This brings me to a recent situation.
Here’s the scenario -- a new listing hits the market and I show my buyer clients --- it’s good, not perfect -- longtime owner and updates are minimal. I'm being kind here. Nothing too bad but nothing that shouts WOW. It also seems to me and my very savvy buyer clients that this particular property is priced above market value.
Cut to Scene Two -- 60 Days later.
My clients are still looking in a hot market and after “losing” a couple of properties in the still frenzied multiple offer world we are experiencing --- decide to review “that” home. I contact the listing agent(just happens to be a relative of the seller) to get a feel for what’s happening.
No offers have been submitted. Seller disclosures are still not available. Answers to questions are vague to say the least. Not a lot of help but some agents are more willing to share than others. That’s okay, we deal with these things. Even in a hot market...some properties and some sellers are just not ready to sell...not quite….
My clients decide to write an offer. I meet with them. We talk about strategy and we talk about pricing. We review comps -- one of the comps is a recent sale of one of my listings. My buyer clients arrive at a price they feel comfortable -- it’s obviously not full price. Remember - 60 days on the market - no offers - many neighborhood sales selling within days above list price...multiple offers. Lots of activity. Got it?
They sign the paperwork, provide proof of funds, there is a strong pre-approval letter from a reputable lender….
The offer is submitted. A confirming voicemail is left. This agent never seems to pick up when a call is made...anyway….
Later that day. A call from the listing agent.
Why is your offer so low?
I’m waiting for a pause...as in here’s the punchline -- thank you so much for the offer. I hope we can work out something….
No, I mean really...I know about lowball offers and this is not one of them.
I explain the comps -- the agent isn’t a rookie at least not in terms of years of experience. It’s not seeming to resonate...Hmm...
I try to get a read on motivation or some logical explanation…. there doesn’t seem to be any...and, really, I’m searching….
A counter comes back --- some terms were countered that were already addressed in the original offer(another of my many pet peeves) and then the price --- a whopping .004% off the list price.
I mean really.
So what do you do?
Stay tuned….
Believe Me! I Know A Lowball Offer When I Submit It….
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