With all the negative press, I have many buyers who feel that we have not yet "hit the bottom" of the housing market and feel homes are still overpriced.  They are writing 15%+ under list price on homes that are already priced very competively for our market.  Even if I show them comparables for the area, they still feel that there are some major deals to be had.  Now, I'm not saying there aren't, because there still area, however, it would great if there was a way to give them a wake-up call.

While there is a 1 in 100 chance that the seller may be more desperate then one realizes, and be willing to take a very low offer, buyers often end up losing the right home for them.  The inevitable then happens that they compare all other homes to the "one that got away."

Here in Dane County, Wisconsin, average home prices have not yet fallen year to year.  We are still showing appreciation in the value of homes.  How does one get the point across that Real Estate is local, so what California or Florida or Michigan may be experiencing is different from what we are seeing locally.

Another example is on our foreclosure/short sale market.  Many of our foreclosures that are priced quite competively, are receiving 3 or 4 offers within several days of going on the market.  At this point, the bank asks for "highest and best" offers from all prospective buyers.  My latest investor client, upon hearing that there were 3 other offers to compete against, DROPPED his original offer price by $10,000 on a $140,000 home!

HELP!  How are you dealing with this issue?

 
This post has been included in Wisconsin Real Estate News Dane County, WI Real Estate News
Post is included in group: Keller Williams

4 Comments on Winning the War, but losing the battle - Buyers and Lowball offers

AUG
07
2008
119,206 Points 6 Featured Posts Localism Sponsor

Mindy - there are some great dialogues you can use to help offset this, and I am finding that a lot of these objections can be headed off at the initial buyer consultation, by showing them right there what's sold and that things are moving. I recommend Star Power www.gostarpower.com "scripts for success" and if you gain a good command of them, you can often show a buyer why it is in their best interest to make a competetive offer if indeed it is the right home. Hang in there. Let me know if you want a few examples.
4:41pm • #1
163,928 Points 3 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

There are alot of "scared" public out there right now, that need "statistics" to sell them on the value of the property.  Show them the "Local Stats" and then maybe they will be more willing to offer better prices.  Show them how the "local economy" is doing.  If the local stats and economy are doing well, then you have them hooked.

                 ;>)
4:44pm • #2

Yep, everybodys is looking for a steal.  The negative headlines come from a handfull of cities across the country but everybody wants to apply them locally. 
4:57pm • #3
AUG
08
2008

It gets a little embarrassing with some of the offers buyers submit. Our market is holding its own, but we are starting to feel the downward trend brought on by the media. Sellers are at times not countering due to what they are hearing on the news, which brings the value down in the neighborhood. We need to keep educating our clients.
12:20pm • #4


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Mindy Allen, Broker, ABR

Sun Prairie, WI

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Keller Williams Realty

Address: 2601 Crossroads Drive, Suite 130, Madison, WI, 53718

Office Phone: (608) 226-0200

Cell Phone: (608) 692-0220

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