Are you receiving low ball offers on your property listings in today's market?? How do you deal with the reaction from your sellers when you present these offers? Do they scream at you and complain?
First, you must calmly discuss negotiating the best contract price for your clients. You cannot get emotional and take control of the situation. You then need to explain to your sellers that getting an offer is better than not getting an offer at all. I have had sellers tell me that they will not reduce their asking price because if they do, then potential buyers will offer much less and want to keep their prices higher instead of receive a very low ball offer.
You as the Realtor must take control of this very emotional situation and guide your seller properly in the negotiating process. Here are some suggestions:
- Make sure that the other agent has their buyer put their offer, low ball or not, in writing. (Buyers that put their offers in writing are much more likely to come up on the price because they have put an offer on paper and have include an escrow deposit. The buyer is now personally involved in the negotiating process.)
- Calmly explain to your sellers that it's a buyer's market and that all buyers are looking for more home for their money and are starting out at sometimes a lot lower than asking price.
- Have your sellers counter-offer in writing to a realistic number.
- Explain to your sellers that if the potential buyers really want their home, they will come up to a closer and more reasonable sales price.
- Again, you must take control and speak both calmly and professionally. Remember, you are the expert and this is the exact reason why you were hired to get the best price for your sellers.
- Remember, this may be the ONLY offer that you receive, so make the best of it. You may not get another offer before your listing contract expires. Try top get your seller to negotiate their price down and at the same time, get the buyer to come up on their offer.
I strongly advice real estate agents to get their sellers priced well right from the beginning. The best way to get more showings on your listings is to have the sellers price the property correctly. And, correctly, I mean at market value. Not 8-12 months ago, but what a buyer would pay at today's price. I rather have sellers price their property at closer to their bottom line then to price the home way above market value. Buyers are extremly smart in today's market. Buyers will not look at homes that are overpriced. Remember to explain this to your sellers and to get them to aggressively price their property to sell.
Real estate agents should love to receive low-ball offers. Sooner or later, a "real" buyer will come along who starts low but ends up at a healthy medium on the price, which will get you and your seller closer to the closing table. Any comments?
Michael With Web Email Flyers
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