The number one rule of negotiation in this market is to take every offer seriously and work it the best you can. I have had many Realtors try to short cut this processby calling me and trying to have us both guess what our client's will do. The truth is they don't really know until they are really faced with the option to buy. Every single buyer changes their mind on what they will buy, how they will buy, or how much they will pay through out the home buying process.  I have had several Realtors tell me exactly what their client will do only to be surprised when they do different. I have had many Realtors get mad at me because they said I was waisting time ("let's just work this out over the phone what will your people do") they say. Other Realtors like to say buyers are liers. This is just not the case. Buyers are scared. They are spending the most money they will ever spend thier lives on the most important necessity of theirr lives. "Shelter"!

     This market has produced more low ball offers than most of us thought we would ever see. My motto is "all offers are good offers". I say this for two reasons! #1 someone wants to buy the house. #2 You are showing your client's you and your advertising are working. I have a specific way of handling all low offers and I will line it out step by step below. This process has helped me close several low ball offers. Some this year have been over $60k low!!!!

1. Find out what your client want's to counter. You should have some room in the listing price to negotiate. Even if you have the home priced at the bare minimum keep $3000 to work with, and a few giveaways.  Never include anything in the listing like appliances, pool table, garden equipment, etc. These are not going to sway buyers to write an offer but will make excellent negotiation tools. I love to leave it up to speculation whether these items are included and let the buyers imagination work in my sellers favor.  

2.  I never just send a counter. You have to give the buyer a good reason they should pay more than they  are offering. I  do a fresh CMA,  also pull internet value sites like Zillow, Real estate ABC, and Next- Tag. All value materials provided should be higher than the offer.

3. I write a personal hand written letter on my client's behalf. First I thank them for the offer.  Next I explain the proof of value I have provided with my visuals (CMA, Zillow, Etc). I hand write it because I believe it brings a human touch. I then remind them of the fact my sellers are not just trying to get their money but are transferring to them their most important asset and that they need a certain amount of money to still have a roof over their heads. The final feature in the letter will be a mathematical breakdown of how they are taking advantage of the market even at our counter price. This will very from letter to letter but I have fun with it and try to be creative but factual. I always close with "At this price you truly are taking advantage of the market!!! We really want to work this out with you."

$. After a few counters if the deal looks like it will not work I often will try to bring the buyers and seller together at the seller house as a last ditch effort. Remember we are in a buyers market this may be the last offer we see until values drop again! Nobody can sell a house like the owner. Once the see each other, the kids start playing together or even better it's and older couple doughting on the prospective buyers children miracles happen. Keep in mind allot of your  sellers will not be comfortable with this, and it is not something I would ever push. If both parties are willing it can be true magic to a low ball offer. I do it and it has worked for me 100% of the time.

You may view part 1 by going to www.teamthayer.com  and going  to the Real Estate blog tab.  

Jstin Thayer