I have been hearing stories lately that are frankly hysterical, but also very concerning, about seller responses to offers.
One agent had a home listed for $325,000. He got an offer for $300,000. Upon presentation of the offer, the short sale lender decided to counter with $275,000. Huh???
I had a lease/purchase home listed for $1500 a month. A prospect offered $1300, so I presented the offer. The seller told me to make it $1000. Huh? I told the seller they offered $1300, right??? So he countered with $1200. Huh? After some tough negotiation, I was able to convince him to accept the $1300. He was simply afraid we would frighten the offer away by simply accepting what was offered. I have never before had to argue with a seller to accept more money!
I had a client who put an offer in for what was a commercial building that was foreclosed. The bank was asking $115,000. We studied the property carefully, and decided a replacement could be constructed nearby for $50,000 on a $20,000 lot, making the value approximately $70,000. The listing agent volunteered at the beginning the property was probably overpriced, and encouraged an offer. As fate would have it, they received another offer at the same time, so they decided to ask both parties for "highest and best" offers. My client wanted to stand pat, so we did. The lender rejected both offers and RAISED THE PRICE TO $137,000!!!!!!!!!!!!!!
Are we ever going to see "normal" again, or is this the "new normal"?
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