Mirror Image of a Low Ball Offer = High Ball Counter

By
Real Estate Broker/Owner with F.C.Tucker 1st Team Real Estate

We've come across some Blog posts about the topic of Buyers making offers to purchase homes     Not everyone is desperate to SELL   significantly lower than the asking price. We can certainly relate to how other REALTORS feel about this topic, (and this post is NOT about having a HIGH Ball to help you deal with offers like this :) .... Recently we've had to deal with a low offer that came in on a property we had listed for sale in NW Indiana.

The saying /strategies "some offer is better than no offer" & "let's try and work with this" don't always go over very well with some sellers we represent. Especially when the offer price is very low = 26% below the list price!

The Proverb(28:25)GREED stirs up dissension,comes to mind.

 

Now if the home were in foreclosure, or had mold or was a fixer upper, or missing major mechanicals like the furnace, A/C and hot water heater, we may understand the low offer.

Or, If the buyers agent would send over recent comps to justify the stock market like price drop - we would certainly do a double take (and wonder why didn't we already see those comps when we did the CMA ) and we would then present the facts to our seller to get negotiations going! This property was not a Short Sale. (Even on a short sale the bank has a BPO done and knows the bottom line of what they are willing to accept.)

However not on a move in condition property, well maintained and priced competitively below the sold non REO comparables in the neighborhood.

One typical seller response on offers like this may be to flat out REJECT THEM or even ignore the offer.

Especially when showings on the property are abundant and there are calls from other agents who anticipate writing offers on this very same home as well.

With this good news about the property activity in mind, Jeff shared with our seller a lighthearted strategy introduced to us by Terry Watson - a world known speaker at our Company's ( F.C. Tucker, Inc.) annual Convention this past February.

 Terry talked about a mirror image offer to reflect the Buyers Low Ball offer to MAKE A POINT.

+ counter

_____________________$ List price

- offer

If the buyers offer is 26 % below the asking or list price - the counteroffer would reflect the same % of increase in list price. Our seller loved the idea and opted to do this.                   

Mirror Image Just like the Shoe on the Other Foot Idiom..... the reactions to this High Ball Counter Offer from the buyer and other agent mirrored exactly some of the same initial sentiments that our sellers felt when receiving the Low ball offer!

Exclamations like: Are You Kidding me?

Is this REAL?

Am I reading this correctly?

 Is there something wrong with the fax?

 

Remember the words of the song Man in the Mirror?

I'm Starting With The Man In The Mirror
I'm Asking Him To Change His Ways

And No Message Could Have Been Any Clearer

If You Wanna Make The World A Better Place

Take A Look At Yourself, And Then Make A Change

Was the BUYER willing to see & change his ways? .... we will never know....as faith has it ( the other ½ of

Proverbs 28 :25 says: "but he who trusts in the LORD will prosper" )

Another offer came in on the same home @ 98% of LIST price a 24 % difference to our seller from the 1st Low Ball offer.

The Home SOLD.        Now, We will toast to that!             Cheers :)

___________________ 

 Thanks for stopping by and reading our Northwest Indiana Real Estate Blog!

 Just as the seasons change here in NW Indiana, we help clients achieve their Real Estate Goals in various seasons in life. We look forward to serving you.

 Sincerely,

Jeff & Grace Safrin - "Spouses Selling Houses" TM

Real Estate Broker Associates with F.C. Tucker Advantage Realty - phone # 219-405-1232.

Valparaiso residents serving Lake, Porter, La Porte, Jasper & Newton Counties in NW Indiana.

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 Disclaimer: The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of Jeff and Grace Safrin of F.C. Tucker Advantage Realty. Jeff and Grace Safrin and F.C. Tucker Advantage Realty are not responsible for the accuracy or content provided.

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Valparaiso, IN 46383         

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Rainmaker
1,903,573
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Jeff and Grace

There is this norm that any offer these days has to have an insulting low approach. I will think as home rebound the buyers are going to be in for a rude awaking

Jul 06, 2009 07:07 PM #1
Rainmaker
797,359
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Jeff and Grace - You make a great point about mirroring the lowball offer.  It seems like just because it is a buyers market, they think they can offer much lower than market value on any listing.  This just isn't the case, and as soon as the market levels off, it will be even worse for the buyer.  Buyers, don't try and take advantage of sellers because when the market turns to a sellers market, they will take advantage of you.

Jul 06, 2009 07:41 PM #2
Rainmaker
540,433
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

yes Tom and Troy - you both bring up good points.....unfortunately there is a premise out there (PERHAPS INFULENCED BY MEDIA PAINTING A PICTURE OF HOW BAD THE MARKET IS- A HASTY AND SWEEPING GENERALIZATION AND THUS ILLOGICAL) - that all sellers are desperate right now to sell and that is not the case - when a home comes on the market that is priced below all the neighborhood sold comps, repainted and carpets cleaned and staged to be move in ready for future buyers - and at a price point for 1st timers to reach....there sometimes is a frenzy - not the time to try and be greedy and see how low you can go...but I guess they didn't believe us ? when we said interest was high there were other showings ( some 2nd showings ) with another possible offer soon ( we were told by another agent they would be writing and offer...but until we had it in our hand we could only relay anothers intentions).

We do understand that the agent has to do what her buyers instruct - perhaps they ended up bidding on a home in their true price range.

the ol saying champagne taste on a beer pocket book comes to mind :)

Sincerely,

Grace

 

Jul 07, 2009 07:44 AM #3
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Grace, low ball offers are part of our market and the buyers should not be surprised when sellers counter offer.  Homes that are not in need of repair or considered a HUD or foreclosure typically part of the depressed market should not be viewed in the same manor.  Homes that have been vacant without the loving care and maintenance of home owners tend to be priced lower for a reason.  Well maintained homes that buyers throw out these low ball offers need to realize an offer isn't a purchase.  Nice post Grace.

Jul 07, 2009 11:15 AM #4
Rainmaker
540,433
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

Hello Gary - I remember reading a tweet on twitter recently that 50 % of GR listings are foreclosures...is that true? Low offers are becoming more frequent here as well - Jeff has a saying that if you go beyond 3 counters back & forth the chances become slim that the deal will ever see the closing table.

Just too much greed on either side, makes the teeter taughter of emotion catapult any logic away :)

thanks for taking time to share

Sincerely,

Grace

Jul 07, 2009 04:38 PM #5
Rainmaker
507,350
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

He was trying to "steal" the house and use an agent to do so. Common sense has to prevail out there. I've told a buyer on many occasion that i'm very good but not that "good" to steal a house for you.

Aug 24, 2009 01:44 AM #7
Rainmaker
540,433
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

Wow Robert - that is a great way of putting it! I will remember that next time if we are faced with this situation.

thanks for sharing

Sincerely,

Grace

Aug 24, 2009 05:03 AM #8
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