Don’t Throw the Baby out with the Bath Water

By
Real Estate Agent with RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate

Buyers I need to talk with you candidly and explicitly…don’t throw the baby in waterbaby out with the bath water when you are making offers on houses.  You’ve just made a poor offer even worse by making an offer that is so low because that is all you can afford to pay.  And by the way, your realtor is largely to blame.  Yes, really.

 

To the point realtor:You have a mortgage pre-approval letter you have shared with your Realtor?

    Buyer:  Yes, but I would never buy a house for that amount that I was pre-approved for.

 

To the point realtor: You put in an offer on a house that is listed for the amount on your Mortgage pre-approval letter though?

    Buyer:  Well, yes but all houses are overpriced and I figure that 10% comes off the top.  My realtor did not tell me to do anything differently.

 

To the point realtor: Did your Realtor guide you through the comparable prices of solds on similar homes in recent months to formulate an offer?

    Buyer:  Hmm, she let us establish an offer price…no we never saw any documentation for what similar comparable homes had sold for.

 

To the point realtor: Did you know as a buyer your realtor should do that for you prior to making an offer to guide you? 

    Buyer:  No I did not, she said decide what price we want to offer on the home (plus all the additional items such as riding mower to include with the offer) and then she did the paperwork and we signed it.

 

bath tubWell this to the point realtor is here to tell you that it rarely works well this way because the baby is still crying in the bushes and the water is long gone.  This to the point realtor would like to educate your realtor and you, the buyer, in how to better approach an offer…

 

First, make an offer on a house you can really afford.  Don’t expect to have sellers accept an offer that is way under the comparable solds for similar homes.  Second, find a realtor who knows their business and won’t leave you heart sick when you keep losing out on homes with your current offer strategy.  It’s leaving the sellers feeling somewhat ill too.  Third, you, the buyer, should be a good consumer and ask the questions as you would on any other large purchase, get the data and then make a better guided decision….with a more knowledgeable realtor. 

Knowledgeable realtors don’t throw the baby out with the bath water.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Ginny Lacey Gorman lives in North Kingstown RI and knows the geographic areaschools, happenings, important tidbits of information and businesses well. If you are looking for someone to guide you through the home buying process, she is a licensed Realtor® and would be happy to assist you. Waterfront, oceanfront and coastal RI homes for sale are her specialty.  When you are in need of more information from an internet savvy Realtor® who sells RI houses in this real estate market, just call Ginny at 401.529.7849.

 

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This blog © and its contents is original to Ginny Lacey Gorman

the RI waterfront Realtor of Choice

 

Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.

 

Looking for a knowledgeable Rhode Island Real Estate Agent?  Let me GOOGLE one for you!

            

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cell: 401.529.7849      Ginny Lacey Gorman, Realtor

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Ryan Case 11/28/2010 03:51 PM
Topic:
Home Buying
Groups:
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Realtors®
Almost Anything Goes
Social Media Marketing
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Tags:
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Rainmaker
401,591
Debra Gould
Staging Diva / Six Elements Inc. - Toronto, ON
The Staging Diva

Excellent posts and insightful comments from everyone.

I believe it's incombent on the agent to do their homework and offer their best advice. Whether the client takes it is beyond your control. But you do have control over what clients you choose to work with.

Nov 29, 2010 07:31 AM #89
Rainmaker
334,052
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

Ginny, well done and to the point, I hope more read your post.

Ty

Nov 29, 2010 08:00 AM #90
Rainmaker
66,965
Susan Templeton
Bellingham, WA
On the other foot...I found my first home in a personal physical street by street search of my desired area after my Realtor kept dragging us outside our search zone. We asked her to present a low offer (after having done our on comparable homework) and voila the seller accepted. She told us she was embarassed to present the offer. I guess she was OK about accepting the commission check for a house she hadn't even found.
Nov 29, 2010 08:30 AM #91
Rainer
69,104
Robert Courtney
Lihue, HI
Century 21 All Islands, RA, CDPE, MCRE, CIAS

Ginny - Realtor's that understand this is a profession get what you are saying.  I am sure there is always an exception, but again, a Realtor doing their homework would be able to see where the exception MIGHT be.  Like Ty, I hope your blog is well read.

Nov 29, 2010 09:19 AM #92
Anonymous
Mary

Some buyers are always trying to bargain shop like they are at a flea market (swap meet).  But rarely does this work (if ever) in purchasing a home.  Sellers, even though they may need to sell their home, will not let it go for an unreasonable price.  These buyers are unreasonable and will most likely never buy.  This is not the way to shop for an investment such as a home.

Nov 29, 2010 09:29 AM #93
Rainmaker
1,799,440
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Well i guess this baby won't be thrown out with the bath water...amazing amount of comments and insights here...perhaps we'll all learn something from it & can share with future buyers...many thanks again

Nov 29, 2010 11:12 AM #94
Anonymous
Sharon Vest

It seems that the buyer most likely to expect sellers to roll over on their low ball offers are the ones that tell us they "had to sell way below asking and pay $$$$ for repairs".  Never mind that their listing agent took the listing way over market just to get them to sign!

Nov 29, 2010 11:19 AM #95
Rainmaker
365,601
Woody Edwards
First Choice Realty, Inc - Chesterfield, VA
A Realtor® Who Answers His Phone!

I love it.......this is so true with alot of agents, however, fewer every month!

Nov 29, 2010 11:21 AM #96
Rainer
167,072
Janine Boulay-Seibert
Seibert Properties - Murphy, NC
NC & GA Real Estate Broker

To funny, I hate to get a low-ball offer from an agent. I just cringe when the time comes to present it to the seller. Worst is when I'm the buyers agent and the buyer insist they want to waste my time writing one up....Hate it.

Nov 29, 2010 02:38 PM #97
Rainmaker
647,119
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Hi Ginny,  Problem I have is that I tell them and I show them and sometimes they just think they know better. 

Nov 29, 2010 02:47 PM #98
Rainer
33,908
Jennifer Marks
On Maternity Leave - Garner, NC

Love this. So true -- sometimes you can even give them the comps and they still try to get that "3 am infomercial deal"  Great Post

Nov 30, 2010 01:09 AM #99
Rainmaker
1,799,440
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Yes, we've all gone through it & hope it doesn't happen again!

Nov 30, 2010 10:18 PM #100
Rainer
55,551
Kelsey Barklow
Hurd Realty - Johnson City, TN
423/948-9154

Great topic. I always check comps and share them with my buyers and do my best to convince them why they should consider those comps when coming up with an offer price. Sometimes they listen and sometimes they don't. (P.S. Some buyers know more than their Realtor!). Thank you.

Dec 02, 2010 04:13 AM #101
Rainer
432,184
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

I've had it work both ways.  The buyer knew the comparables but asked if he could offer lower, not ridiculously lower.  I said it was his choice but expect rejection or a counter offer.  The counter came back within the range I suggested and the Buyer agreed to it.  Another Buyer heard me say the seller was too high and made the offer I recommended.  The seller countered with his original price and some closing.  My Buyer really wanted the house and accepted.  However the appraiser came in with my original price and the seller took back some of the closing and agreed to the new price.  I'm sure you all have stories.  You just never know.  We just do our best.  Margaret C.

Dec 02, 2010 10:48 AM #102
Rainmaker
273,570
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

This post could be an example of a client being underserved by their Realtor or a client thinking they know more than the Realtor.

Dec 02, 2010 03:54 PM #103
Rainmaker
1,799,440
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

kelsey & marne...we do the best we can with the info we have & hope the buyers get it..

 

Margaret, you are right we do our best & hopefully eventually come to a satisfactory conclusion...but they do hire us for our expertise right?

 

Wayne, i agree that it probably was a little of both & desperate times in these areas make some Realtors not act as responsibly as they should...best

Dec 03, 2010 01:43 AM #104
Rainmaker
234,780
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

Very good advice!  Many agents do not educate their buyers and it just ends up wasting time during the home buying process.

Dec 05, 2010 08:06 AM #105
Rainer
478,183
Not a real person
San Diego, CA

Many decades ago when I was a real estate agent in Houston, we were taught that all houses are overpriced by 10%, so we always wrote offers that were 10% below the listing price. It rarely failed.

Dec 07, 2010 04:01 AM #106
Rainmaker
1,799,440
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond
Patricia...i don't like my time wasted and it happens too often with buyers who are not so to speak grounded in their lives... Russel...that was then not now! I hope if you were an agent now you wouldn't think that way..
Dec 07, 2010 06:15 AM #107
Rainer
60,032
Dennis & Terri Neal
RE/MAX, Big Bear - Big Bear Lake, CA
Your Home Sold in 45 Days or We Se

Every house and situation is different. If a house is priced right a full price may be in order. If the house is way overpriced a low ball offer may be warranted.

Dec 11, 2010 05:27 AM #108
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