How to Deal with a Difficult Seller in a Seller's Market
In real estate markets that are currently in a strong sellers' market, there are often those sellers that think they can get away with anything because everything is selling quickly. They couldn't be more wrong. And, here's some tips from Lynnea Miller in handling these folks:
We have been blessed in our local Bend Oregon real estate market over the last few years to be in a growing community with
escalating prices and strong buyer demand. Multiple offers and closed sales over asking price are common. However, when the market is like this, seller expectations often become unrealistic and inflexible which can create frustration for both the client and the real estate agent.
Some common issues we are experiencing with listings include:
- Seller pricing above market
- Seller demanding open houses every weekend
- Seller demanding expensive print marketing
- Seller dictating marketing outside of normal real estate practices because they were in sales in an earlier time and that is how you sell
Once the home is in contract, we are seeing an unwillingness to negotiate repairs. An attitude of "take it or leave it" is often seen with normal buyer expectations such as a serviced HVAC system being rejected by the seller.
So how do we as real estate agents work with difficult sellers? We set the tone right from the start. When sitting down at the beginning of the agency relationship, tell the seller your marketing plan. If you are willing to sit an open house every weekend, let the seller know. But if your plan is to hold just one MLS Broker open, let the seller know that. If your marketing includes print ads, let them know. But if it doesn’t, let them know that as well.
When it comes to pricing the home, let the seller see the comps you have used to determine market value. When the seller argues that his/her home is “special” and worth so much more than the neighbor’s home which you are using in your comps, find a property you can take your seller into that is of like value and ask him/her what they would pay for that property. This is a great eye opening experience and often moves a seller into a more realistic pricing strategy.
If the seller refuses to start the listing at the price you know it can sell, agree to start the listing at the seller’s price. Let him/her know that after two weeks, based on feedback from other agents, we will revisit the price and adjust it. If there are no showings at all, let your seller know that in a hot market, no showings mean the home is overpriced.
For sellers who refuse to negotiate repairs, let them know that if there is a sale fail, all the information gained from the inspection will now need to be disclosed to a new buyer. It is far better to work with the current buyer and come to a reasonable repair agreement (often a seller credit at closing) than to start the process over again with a new buyer. Plus what is the carrying cost of the home if the sales process has to start over? How long will it take to find a new buyer? Be the professional in the relationship and let them know you have the experience to guide them.
Sometimes, despite our best efforts, a difficult seller cannot be satisfied. With the agents in my brokerage, I often ask them if the emotional cost of working with a difficult seller is worth the potential commission. If they are losing sleep, are constantly dealing with this seller at the cost of neglecting other clients or their family, feel harassed, constantly questioned, and their professional guidance is ignored, it may be better to terminate the relationship. A difficult seller can drain a real estate agent of their energy and their time. Sometimes it is just not worth it.
Lynnea Miller
Principal Broker
Bend Premier Real Estate
o: 541-323-2779 f: 541-323-2830
c: 541-771-6390
www.bendpremierrealestate.com
Licensed in the State of Oregon
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