Special offer

But You May Not Get Another Offer For Awhile...

By
Real Estate Agent with RE/MAX United Real Estate

Recently, I've been lucky (I think) to get some listings that have Sellers with equity.  This means that when an offer comes through there's no waiting for a bank or other "third party approval".  You would think that would mean that these Sellers would be ready to work with reasonable and even not-so-reasonable offers that come to the table.

You would be wrong.

In fact, I'm working with a Seller now that has equity and can certainly make a decision to move forward pretty quickly...if they really wanted to. Of course, they tell me they're ready to sell but, of course, they don't want to "give it away" (don't pay attention to all those short sales and foreclosures that are being "given away").

To be fair, some of the offers are pretty low and pretty insulting. However, one came in the other day which, while a little low, was entirely within the realm of reason.  I'm thinking that home prices have declined since the home originally went on the market.  I'm thinking there are no good, recent comps.  I'm thinking that 25% of the Actives in the neighborhood are short sales or bank owned.

So I try to point out the benefits of working with this offer or even accepting it as presented.  No go. My Seller client needs to have [x] number of dollars.  Never mind that the possibility of getting [x] number of dollars decreases as every week passes.  Never mind this Buyer actually looks like they can afford the home and pay the mortgage.

But I tell myself (and tell myself and tell myself), "It's not my home."  If the Seller wants to sit on it for a few more months, that's up to the Seller. 

It brings to mind a client I was working with last year.  She didn't want to give it away either. She turned down pretty reasonable offers.  She didn't want to "give it away". After several months of no offers and some price reductions that particular client actually sold and settled for $30,000 less than the offers she turned away because she didn't want to "give it away".  You see, she eventually got to the point that she wanted to sell, needed to sell and would take virtually anything to sell the house and move on with her life.

It's just a damn shame that some people take longer to learn the lesson than others.

Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

Every single thing is in flux these days.  I guess you need to consider and forward all the info you receive and see where it goes.

Nov 25, 2008 10:37 AM
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Candice -- Yep.  It's amazing that even when they can walk away with money in thier pocket, some folks want even more.  In this market, that's a risky strategy.

Randall -- I agree.  It's up to the Seller.  If they want to wait. I'll wait with them.

Nov 25, 2008 10:45 AM
Rich Mielke
REMAX Results, Frederick MD - Frederick, MD
REALTOR, Frederick Maryland Real Estate

Ken, a seller with equity? does that mean that at settlement, the seller actually gets a check? What a great concept!

Seriously, I have someone I am working with, who is in a community where there is a 100K spread between REO and owner occupied. It is a challenge to ween him off the thinking of "how much he needs to get out of this sale" and focusing on what will get it sold.

Nov 25, 2008 11:21 AM
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Rich -- Can you believe it!?  A Seller that will actually have money at the table after all the costs. Still some folks want to get a certain amount.  Hopefulyl, this one will get their wish.

Nov 25, 2008 12:20 PM
Alan Gross
PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD
Loan Consultant

As we move into 2009 let's hope balance comes back to the real estate market. We spent several years in a sellers market where their expectations of multiple offers and home appreciation got to high. Now were in buyers market and some sellers haven't seen the light. Hopefully, with lower interest rates we can get the market moving and get the short sales and foreclosures off the market. I believe a balanced market is best for both buyers and sellers.

Nov 26, 2008 02:47 AM
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

Good post, Ken! That is the most frustrating part of a listing, when you've got a ready, able, and willing buyer and an unwilling seller.

Good luck with your listing!

Robin

Nov 28, 2008 01:27 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Ken:  I had a neighbor who "wouldn't give it away either."  In wasted time, she lost over $100K of equity that accepting a reasonable market offer would give her.  That was thrown out the window over the course of a year.

Nov 28, 2008 01:31 AM
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Robin - thanks! I surely hope the buyer at least counter offers the counter offer but with all the inventory I don't have high hopes.

Chris - Yep.  $100,000 is a lot of money to lose because of the principal of the thing.  Some folks just don't quite realize that their situation isn't much different from the gazillions of other houses on the market.  It's the polar opposite of the Seller's Market frenzy of '00 to '05.  Now they buyers say, "take it or I'll move on to the next one."

Nov 29, 2008 12:24 AM
Dr. Stacey-Ann Baugh
Century 21 New Millennium - Upper Marlboro, MD
A doctor who makes house calls.

Its a hard lesson for a seller to learn.  In this type of market it really is silly to let a good qualified buyer walk away.  I can imagine this has been frustrating for you.

Nov 29, 2008 12:52 AM
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Stacey -  You are so right.  It's frustrating because this was a reasonable offer and it was from one of the darn few people who even walked through the door to view the home.  It would be one thing if the hose was getting even one showing a day.  I think I may have had 6 showings in two months.  But, hey, it's not my house.

Nov 29, 2008 01:16 AM