Daddy Where to Offer Prices Come From?
I was inspired to write this post after reading Candice Donofrio's post in which she talks about clients of a Realtor® who just keep making low ball offers. Candice ask the friend if she was preparing comps for the buyer so that they would know what homes were selling for in the areas where they were making offers. Suddenly a light bulb goes off in the Realtor® friends head.
The Buyer Consultation
No real estate agent should EVER go out with a buyer without having had an initial buyer's consultation. The buyer's consultation is not an event that should be dismissed nor taken lightly. This all important consultation should fully prepare the buyer for what to expect during the process. And granted that you are really working with a serious buyer, the real estate agent should discuss, without question, how offers are derived. In other words, where does that magic number come from when it's time to make an offer. And I can tell you, it doesn't come out of a hat.
It's the Comps Silly
Some agents make the mistake of thinking that comps are only prepared for sellers. Not so. If agents don't prepare their buyers to make offers, then everything else that do will lead to frustration. Especially if you treat that lowball offer like it just came out of the mouth of somehow who just got off a bus in a new city. Instead of attributing the lowball to the possibilty that you didn't fully prepare your buyer.
Here's A Clue For You
Buyers ALWAYS ask this one question: How much should I offer? This is the real estate agent's golden opportunity to reinforce how offers are made and where the offer prices stems from: THE COMPS. It's the comps silly. It's the comps.
Timeout
If you are not having an initial sit down, bonafide consultation with every buyer that you are working with, then you should STOP right now and rethink your game plan. You should STOP right now, and think about how you might be adding to the frustration of offer after rejected offer.
The Buyer Consultation: Just Do It! And Do It Thoroughly. And now a word from our sponsor.
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