Home > Blogs > Gita Bantwal > Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at Re/Max Centre Realtors.

It is a Buyer's Market , but please do not insult the sellers .

By Gita Bantwal

Real Estate Agent with RE/MAX Centre Realtors

January 03, 2009 08:47 PM

It is a Buyer's Market. Buyers automatically assume that they can offer thousands below listed price . I am an Accredited Buyer's Representative and help buyer's negotiate the price but also advice buyers to be careful and not insult the sellers by giving a list of reasons why they made a low offer. They find fault with every thing in the house. This may back fire. Sellers may refuse to sell the house to a person who criticizes every thing about the house.

If you make a low offer you can make it based on comparable sales and mention a few major repairs that you may need to make but at the same time compliment the sellers about some things about the house.

You can also suggest that you are offering the price based on recent sales and based on fact that you can settle quickly( if that is the case ) or if you are a pre approved buyer.

Hire a Buyers Agent to help you negotiate the price .

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Joseph D. Federico

MVP Realty - Naples, FL

Southwest Florida Homes with Joe Federico

Gita-You stated it very well.

Jan 03, 2009 10:29 PM

Erby Crofutt

B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY

The Central Kentucky Home Inspector, Lexington KY

Glad to see more and more Buyer's Agents on here promoting the interests of the buyer!

Well said, Gita.

Jan 03, 2009 11:23 PM

Anne Hensel

South Beaches Real Estate Professionals - Saint Petersburg, FL

Realtor - Broker - St. Pete Beach, Treasure Island

It is common sense, do NOT insult the seller and the other way around, unfortunately a lot of people forget this. great reminder.

Jan 04, 2009 12:49 AM

Rebecca Anne Cole

PNC Mortgage - Timonium, MD

Great post Gita. It is so important to be respectful of other people and realize that everyone has a point of view when negotiating.

Jan 04, 2009 02:05 AM

Linda Tremblay

Long & Foster Real Estate, Inc, PA License #AB065488 - Doylestown, PA

Associate Broker - Bucks County, PA Real Estate Services

Absolutely true. We can thank the press for some of that nonsense-telling buyers to only buy if they could pay 50 cents on the dollar. Not around here... Both buyers and sellers need to be reasonable and respectful to the other party. It makes settlement so much nicer :-)

Jan 04, 2009 02:23 AM

Wanda Thomas

Montana Homestead Brokers, Broker, CRS, GRI, SFR, RN - Billings, MT

Billings Montana Real Estate

Doesn't your heart just sink when a buyer wants you to bring a rediculous offer? I smile and then I inform them that if they want this home, I will bring the offer, but that we may loose the chance of further negotiations in our favor, wasting their time and money (for inspections). Seems that when there is a WIN-WIN feeling for both parties, transactions close and people are happy. I like happy people!

Jan 05, 2009 03:03 PM

Rich Quigley

Chicago, IL

Gita,

This is good advice for any buyer or buyer's agent. Thanks for posting to the ABR group.

Jan 07, 2009 01:49 AM

Brian Griffis

Realty Choice - Springfield, MO

Great post Gita. Buyers should definitely be represented, it doesn't cost them any more. I don't think anyone is "insulting" when they make an offer. An offer is just that. The buyer doesn't have to buy the property, there are plenty of others out there, and the seller doesn't have to accept. So, I never have a problem presenting an offer from a buyer or taking an offer to a seller. If I am representing the seller, I advise that they should counter the low offer. One would be surprised how often a ridiculous offer can turn into a sale after a couple counter offers. I made a low offer on a distressed property myself, and after 4 counters, we got the deal done. Never say never.

Jan 08, 2009 01:19 AM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Joseph, Thank you.

Erby, A Buyers Agent can help a buyer negotiate the terms and price.

Anne, I agree . I present all offers. But I have seen sellers refuse to counter because they did not like the buyers .

Rebecca, Thank you.

Linda, I agree .Some buyers expect to pay 50 cents on the dollar.

Jan 09, 2009 01:56 AM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Wanda, It does make it easier if every one is happy.

Rich, Thank you.

Brian, I agree.If it is a distressed seller, they will accept anything, but there are many who do not need to sell at a low ball offer.

Jan 09, 2009 02:00 AM

David Width Jr.

Little Egg Harbor, NJ

Very good point you made here. I have had this done to me and it really aggrevates me when a buyer and buyer's agent don't justify the offer made.

Jan 09, 2009 04:52 AM

Brian Griffis

Realty Choice - Springfield, MO

David, why should they? It is just business, they are not trying to insult your personally. They are simply trying to get an asset at the lowest price possible. Why should they justify it? If you don't like the offer, why not just counter it? No one wants to overpay, that is common sense. Many buyers simply don't know what the true bottom dollar is, especially in this market. They know when they make an offer, they definitely can't make a lower offer, but they can always make a higher one. Simply let them know what your true bottom dollar is by countering, and you may be surprised how many buyers respond.

Jan 10, 2009 04:12 AM

Ron Spanton

RE/MAX Real Estate Associates - Gilbertsville, KY

Kentucky Lake Area

I wish I could always get my sellers to counter a low offer but a few times I haven't been able to get them to. Unfortunately, it seems like once they're insulted they're done with the buyer and wouldn't sell to them under any circumstances. It would be much easier if I could convince them it's just business, but pride, ego and all those emotions get in the mix. I would appreciate any ideas on how i might get over this hurdle?

Jan 10, 2009 04:26 AM

Brian Griffis

Realty Choice - Springfield, MO

I just have to explain to people that the first offer is simply that, an opening offer, much like at an auction. Someone might bid one dollar for that classic corvette as an opener, but it is not going to sell for that obviously, and no one would expect it to, neither the buyer nor the seller. You have to let your sellers know that people simply want to get the best price on any asset. Homes get tied up with a lot of emotions, but let your sellers know that the buyers have not lived there yet, so they don't have the same emotional attachment, and they are not trying to insult you. This country is very value conscious (much like Germany), and people do not want to overpay under any circumstance. You may want to explain that to your sellers before the offer is made, maybe even when you take the listing. People know that the listing price is not the true price. They have no way of knowing the true price, and since they don't want to overpay, they will most likely underbid. Countering lets the buyers know the true bottom dollar. Just let your sellers know the facts. That way, they will know what to expect, and if they get a full price offer, they will be overjoyed.

Jan 12, 2009 04:03 AM

Ron Spanton

RE/MAX Real Estate Associates - Gilbertsville, KY

Kentucky Lake Area

Good explanation Brian, thanks for the help with this. I appreciate it.

Jan 12, 2009 07:52 AM

Scott Baker

www.eHomeReports.com Coldwell Banker Realty - Liberty Township, OH

Realtor Homes for Sale Cincinnati/Dayton Ohio

I like the post Gita. In negotiating an offer the seller will probably initially be a little offended, but after 10 minutes and with their REALTOR'S help, realize it is not personal, only business. By offering positive aspects of the home certainly will help the seller make a reasonable counter offer if they do not accept the initial offer.

Jan 22, 2009 03:51 AM

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES

Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL

Florida Waterfront and Country Club Living

Gita, you are right. Even when properties are priced right, buyers want to offer much less. As agents, we can help buyers and sellers to negotiate a price that is reasonable and satisfactory to both parties.

Feb 02, 2009 11:05 PM