Special offer

It's Not A Lowball Offer....It's A "Real Value" Offer

Reblogger
Real Estate Broker/Owner with Ocean View Realty Group in Ormond By The Sea Florida BK559597

Real Value offer is a term coined by Karen Fiddler of California and it is the answer to sellers pricing their properties above current market value.  Great term Karen.

Original content by Karen Fiddler, Broker/Owner BRE# 01494165

 

The conversation about lowball offers has gone on since the real estate downturn began....maybe even before then. The desire of buyers to get a good deal is not new, however, it's always been there.

When financing was easy and cheap and available we did sometimes hear buyers brag about how they over-bid someone and got the home, but this is not a normal state of affairs....and we all saw the damage it has done.

So now that we've gained some perspective and equilibrium in our thought processes.....the lowballs are back. But often they are simply misnamed as lowball and are not low at all.

These are what I term "Real Value" Offers....and I encourage my buyers to write them.

I have buyers who go to see equity sales and find that the home is priced higher than the short sale or REO down the street. This is normal, of course....and there is value in working with an equity seller, but it still doesn't mean we want to over pay for the home. When we see these list prices, I always encourage my buyers to write a reasonable offer anyway. Sometimes they balk at that because they don't want to "insult" the sellers with a "lowball" offer.

Aren't the seller insulting the buyers by pricing the home unrealistically high?

Ok....so maybe it's not about insults. It's about pricing, value and sales! That's it! So if the seller can price too high, then we can write an offer at the Real Value...and then let's see what happens. Often the sellers turn us down only to come back a few weeks later asking if we can work something out. That's ok...and I let my buyers know that this might happen.

It might not be an instant deal, but if we are patient and present ourselves professionally and seriously....then the sellers might think it through. Hopefully they are also working with a good agent who can use our offer to make the point that we are the ones who are serious and representing a Real Value.

So don't think of it as a lowball offer....it's really just a "Real Value" Offer! So who is more serious? The buyer? or the overpriced seller? Hmmmmm

 

 Karen Fiddler
Broker/Associate
The Fiddler Realty Team/eVantage Real Estate
Lic # 01494165

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Have a great day

Al Raymondi
Ocean View Realty Group
1350 Ocean Shore Blvd. Suite A
Ormond Beach, FL 32176
Ormond By The Sea Florida sales and rentals of homes and condos www.ovrealty.com 
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Comments (5)

Tom Meyer
Exit Advantage Realty - Dallas, TX

Hi Al,

When we represent the buyer if we as agents are not comfortable with our buyers offer you always have the right to stop representing them.  People are always looking for the best deal they can get. The banks have made a lot of people upset the way they have been treating home owners after the bailout.

Agree: So don't think of it as a lowball offer....it's really just a "Real Value" Offer! So who is more serious? The buyer? or the overpriced seller? Hmmmmm

Jul 10, 2011 11:24 PM
Henderson Jones
HA jones realty and management - Brooklyn, NY

People will look for the best deal they can get, regardless of the price.The banks have made a mess of thimgs. IS it a lowball offer it depends on who is asking. To the seller it is to the buyer it is not.It is tough for all of us . We have to get paid our commission, the seller is looking for a profit and the buyer is looking for the best deal. So who is stuck in the middle, not the banks.

Jul 12, 2011 03:41 AM
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Thanks for stopping by my blog to read and comment Tom and Henderson.

Tom, I just love the term Real Value Offer.  And yes, firing the buyer is an option but maybe not a good one for most of us.

Henderson, you are correct, buyers and sellers are always opposites and the declining values makes that situation worse and we need to try to get the parties together to make a deal work.

Jul 12, 2011 04:46 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Hi Al...thanks for the reblog, I really appreciate it. I think that the market is stalled by the listing which is too high and a buyer afraid to write a true offer.

Jul 12, 2011 06:42 AM
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

You are probably right Karen and thanks to you for coining the real value offer phrase.  Can't wait to use it!

Jul 12, 2011 08:32 AM