How is the market recession hitting you?  Will you do anything to get a sale, or sell your listings? I know many who will and do. With our industry saturated with many foreclosures, and lender issues, it is surprising the whole real estate industry doesnt just walk away.  I guess, that is happening, not only are many builders in our area foreclosing, but so are some of the real estate franshises.

So when you do finally get an offer on a listing, what are the expectations? I'm finding that most buyers still want a deal, on top of the "lowest price home in the community": That they want to negotiate, even if it is a short sale. The buyer is not concerned for the seller at this point in the buying transaction. ( or ever?)

Isn't it true the the "deal" buyer will find the nicest home at the top of their price range or even totally out of their price range, to make an absurd, low ball offer that is so low that it is not only laughable, but is it really negotiable?, and sometimes the offer is even lower than the lowest home sold for in that neighborhood...EVER!!!!   So is the value really there, if the buyer sees it so differently than the seller??

Here is the stumper... are you running your business or is your client? How about the agent who presents this offer and apologizes!!!! ( the client set the price, not me) Remember, you are the expert, not  the buyer!

 If you know that your clients offer is laughable and maybe insulting, wouldn't you make that offer the best offer possible, because you Know the seller will counter it anyway, or not respond. I would say that he is not edifying his clients on the real estate process, or is so hungry for a transaction that "throwing mud at a deal may just stick"

Perhaps in this market of huge inventory( King County, Washington) and low prices, the economy brings out the worst in people, but it is still important to be professional: Your reputation stays with you , long after that client is gone.

 
This post has been included in Washington Information King County, WA Information

11 Comments on How much is too much?

AUG
08
2008
109,209 Points 1 Featured Post Localism Sponsor

Sheryl:

I have had offers presented on my listings and I am sure the agent is just doing their job, but the offers are insulting, and does the agent really think that a extremely low offer is going to get accepted. I think not.  Yet, I get at least two or three offers that are way below what is consider market value, and the agent always start out with this person is looking for an investment, and?

9:24am • #1

I have a listing that gets offers all the time.  Offers are growing progressively lower.  I have pointed this out to the seller and if I suggest they accept the offer, since we are in a downward market, they get very indignant.   

9:29am • #2
254,613 Points 9 Featured Posts Localism Sponsor Outside Blog

I think we must remember, it's not personal, it's business.  I received a low offer this week, and I also represented a client who made a low offer.  No insult was intended, nor was any taken. 

9:34am • #3
1 Featured Post

If a buyer is writing an offer on one of my properties with me then I try to consul on making an offer that makes sense.  "Do you really want to buy this property, or are you fishing?" If the buyer is just fishing, I may suggest that he/she write the offer with a different office.  There is at least one buyer in this market for whom I will never right an offer (yes, I said never) -- he only buys vacant land and never offers more tha $5,000 -- even when the property is priced at $50,000.  I just don't need to work with a buyer like this.  I try to do business with people who are interested in selling and buyers who are interested in buying. If the timeframe is out a ways, that's not a problem. ~Evelyn

9:35am • #4
193,011 Points 3 Featured Posts Localism Sponsor Outside Blog Hit Router

I run by business when it comes to sellers. If their asking price is absolutely unrealistic and I do not see a chance to ever sell it, I do  NOT take the listing.

With buyers it is a little different, I give them the benifit of the doubt.

They hear everywhere that you can by property for 50 cents on the dollar. Yes, I explain to them that it is already priced way under market value but they still want to make a low ball offer. of course they do not get the property, once they have lost it, they usually get the picture and trust you and the next offer is way more realistic.

Anne

 

9:38am • #5
129,146 Points 3 Featured Posts

I never feel insulted when I get a low offer from a buyer.  Infact on multiple occasions I have submitted low ball offers.  After all its just business.

9:46am • #6
207,601 Points 5 Featured Posts

This is tough call, yes there are some agents writing outrageously low offers.  That's where a buyer's agents is supposed to being doing comps and advising their clients on what may be a workable offer. 

Then again a weak listing agent may not be willing to give a client the hard facts about what the market value of their home really is and what seem like a really low offer might be more reasonable than a seller wants to believe.

9:49am • #7
246,739 Points Outside Blog

Your last sentence sums it up, and the true professional is in the biz on a year to year basis, not deal to deal, and through bad times and good (sounds like marriage?!?).   

9:58am • #8
Hit Router

I also will not take an overpriced listing anymore. I can not afford to spend marketing money on properties that will not sell. As far as low ball offers, one never knows when a seller will say yes. I advise buyer clients to what current values are, but it is their decision on what they offer.

9:59am • #9
SEP
07
2008
3 Featured Posts

Sheryl,

I can sure relate to the scenario where buyers make an offer on a house that is already the best priced property in that price range and they still want a discount on the price and closing cost.

I just tell my sellers not to freak out and make a reasonable counter. Buyers aren't trying to be mean. They're just freaked out too.

9:42pm • #10
SEP
13
2008

Thanks for all the great comments on this always a questionable, situation.  . Enjoy what left of the summer.

7:39pm • #11

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Sheryl Clark, REALTOR & AHS, Home Stager Seattle & King County, WA Real Estate

Kent, WA

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John L Scott-Kent, WA

Address: 20632 108th Ave S.E., Kent, WA, 98031

Cell Phone: (206) 941-3100

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John L Scott one of the top 10 real estate companies in the nation. Seattle, real estate information, buying and selling in Washington state, including King county. AHS accreditation, "Your home-staging specialist."


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