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Low Ball Daddy!

"My father is never going to pay this price!" "I can't believe you think somebody is going to pay this much!" "This price is ridiculous!"This was what a customer was saying to me earlier today while I showed one of our properties. While I am standing there listening to this, I'm thinking about a number of things.

Why am I putting up with this?
This person is a nightmare!
How does the buyer's agent put up with this person?

What I have found is the most effective way to handle this type of outburst is to turn their statement back on them. So I say, "This price is ridiculous???" and then shut up and wait.

The customer looks at me almost dumbfounded, and starts telling me about all of the other properties they have seen that are better priced, more space, etc, etc. I then follow up asking about what price do they think their father would pay for this property?

After the appointment I received a call from the customer's agent saying apologetically that the customer's father will be making an offer tomorrow on the property but it is going to be low. I'm always encouraged about any offer, low or not, it gives us something to work with and worst case gives us a baseline of what the market is willing to pay for this property at this moment. I'm happy that Low-Ball Daddy Exists!

Stay tuned for my next blog, Full Price Mama!

Posted by Morgan Evans-New York City Real Estate Expert on 02/20/2009 08:56 AM

Comments (18)

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18 Comments on Low Ball Daddy!

FEB

Everyone is an expert after going to a real estate annex or talking to their hair dresser. Stand strong and don't take it personally.

Funny! I do think that buyers are becoming more educated about asking prices and realizing that the asking price IS the deal, not the offer.

HAHAHA Nice post L.B. Diddy Hey offer is an offer and you never know where it might go.

Any offer is a good offer. These days, sellers will really surprise you with what they will accept.

Great post Congrats!

Yep, sign of the times. Hang in there, you may be surprised.

I had to subscribe to hear about Low Ball Mama. Are you really from the south? Sounds like a true southerner story to me.

I agree. Right now, even low ball offers are an encouragement to the seller.

How funny ! This should be a good story! I'll be back for the next chapter.

I don't think low ball offers are encouraging personally, I think they are a waste of a lot of people's time. My two cents. I am also subscribing to your blog to hear about Low Ball Mama... I think I might know her.. :)

I agree that this will work and then there are times it will back fire and they move down the road. But you are correct you cannot work with no offer but you can work with an offer.

Morgan, unfortunately some people know the price of everything and the value of nothing. They feel better to beat down the price when they haven't a clue what they're talking about. Have a great day.

WOW - Full price mama? I would love to meet some of those clients. I think you are doing great, whether the offer is low ball or full price, it is numbers game, the more offer you receive, the more chances of pursuading the sellers!

FEB

Morgan- Here's to a lot of "Full Price Mamas" in NYC! Well done!!!

Tom

Morgan,

I enjoyed reading this post. An offer even a low-ball offer is always a starting point to a potential sale. I also subscribed to read about Full Price Mamma.

Gerry's AR signature

MAR

Great Sales Lesson!

When you get to a dead end especially when it is with awe or other emotion by merely repeating it with the opposite emotion or a questioning tone will open the dead end.

However if the client would have said well i don't think i can afford that much the price is very high. then you would have been able to say, when you say high you are obviously comparing to something else, to what are you comparing it to?

You would have had a chance to point out the features.

Sales is a process a question paves the way for an answer, and objection paves the way for negotiations.

A Dead end is a dead end, and you need to turn around with the same question.

MAR

OK, I think I'm stealing your "Low Ball Daddy!" that is a perfect name for a lot of these people coming in to my listings lately. The kids always seem to know better than the agent.. I guess that is why they live in a one bedroom apartment and make $15,000 per year.

APR

Great post Morgan - I have met Low-Ball Daddy. He is the guy who didn't like to put his offer on paper - maybe he didn't want to waste his time drafting a contract for a lowball offer. He is guy who didn't like the the counteroffer - unreasonableness begets unreasonableness. He is the guy who contacted the developer to make him a sweetheart deal when he got the counteroffer on his lowball offer. He is the guy who fired his buyer's agent because he could do it better - well, we let him know his agent would get paid her commission regardless of whether or not any subsequent offer made directly by him was accepted. And... yes, he is the guy who still has a son living at home...

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