Its a Buyers Market, and Buyers Know It

By
Real Estate Agent with Boomerang Leads

Buyers know that its a buyers market and they know that there are good deals out there. However, even when properties are good deals, buyers want an even better deal on the already good deal. They want to offer far less than list price, even when list price is far less than market value. That's the attitude when buyers know its a buyers market but don't fully understand what that means.

Many buyers want to offer $50,000 less than the list price, on $150,000 Logan homes. They want to see how the sellers will respond. Is a low ball offer like this a good strategy?

It depends on who the seller is. If the property is a short sale or bank owned home, then this may be okay. Banks are realistic and aren't going to accept an incredibly low ball offer, but they aren't going to get offended, so making an offer like this probably isn't going to hurt a buyers chance of actually getting the property later if they do decide that they really are willing to pay more.

If the property is owned by a traditional seller, someone who has lived in the house and made it a home, then an offer like this is a bad idea. For a traditional seller, the home has is worth a lot more than what any buyer will pay. Their home has memories, it has emotional value, it has a monetary value attached to the costs and improvements they have made to the property.

When sellers get a low ball offers, they usually get offended. They develop emotional animosity towards the potential buyer and often will refuse to even counter the offer, because they don't want to sell their home to someone who doesn't see the value in it. The rational decision to do what it takes to actually sell their home gets overtaken by pride and disdain.

A good real estate agent will advise their clients on a the real value for the property, and help them make a realistic offer based on that. Many sellers in the market today absolutely can't go any lower than their list price. They are already paying to get out, and are doing all they can just to avoid a short sale.

It's a new age of real estate. Whether a buyer is looking for Atlanta Real Estate, or Real Estate in Logan Utah, attitudes and behaviors are different than they have been in the past. It's important that real estate agents educate their buyers accordingly so that they really can offer the best service and expertise.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Realtors®
Tags:
home buying
buyers market
low ball offers

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
259,411
Kathy Denworth
Century 21 Schwartz Realty - Islamorada, FL
Realtor in the Florida Keys, Islamorada, Key Largo

I had a property listed at $795,000 that they actually offered $400,000 for. Needless to say the owner refused. He said if they wrote it up at $650,000 he would sign, with bank approval.

May 05, 2011 11:53 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
87,293

Alan Barker

Ask me a question
*
*
*
*
Spam prevention

Additional Information