I absolutely agree with Ginny's blog post! As an agent, you need to be showing your buyer homes that they can afford, it is not realistic to think that they can look at homes 10-20% above their approval level, only to low ball sellers, a tactic that DOESN'T WORK 99% of the time.
Buyers I need to talk with you candidly and explicitly…don’t throw the baby 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.
Well 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 area, schools, 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.
Ginny L. Gorman a purveyor of Fine RI Real Estate
Specializing in waterfront, water view and vacation homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich & Westerly RI and all of RI ... I sell dreams!
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Ginny L. Gorman, Realtor Phillips Post Road Realty North Kingstown, RI
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