Negotiation is a lot like playing poker. If you fold, you are OUT!

By
Real Estate Broker/Owner with Richard Weisser Realty

 

In all of my years in real estate, the one thing that I have never understood is the rejected offer.

After all, if the goal of any listing endeavor is to sell the property, what is the purpose of letting any opportunity slip away without so much as a negotiation?

Negotiation is like playing poker. If you fold, you are OUT!A seller has a potential buyer that has expressed at least a modicum of interest in the property.

The seller’s response should NEVER be one of indignation or indifference. The seller should instead respond with a price and terms that are acceptable to them.

It’s called negotiation. And it’s also called taking advantsage of any opportunity that presents itself. It takes all of 15 minutes to prepare a counter-offer.

Why would anyone let any chance of selling the property move on to another property?

Overpriced sellers are a dime a dozen. Qualified buyers are scarce. Do the math.

 

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Ambassador
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Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

I alwyas tell my sellers to look at any offer as the opening to a conversation. Some conversations go somewhere. Others do not. But at least engage.

Jul 13, 2011 02:28 AM #16
Rainmaker
302,737
Mercedes E. Santana
Santana Property Group - New York, NY
NYC Multifamily Properties

Richard

Great post.  Sellers need to understand many Buyers come to the market, educated about what a property should go for.  It is in a Sellers interest to offer a reasonable counteroffer.  Real Buyers are scarce enough.

Jul 13, 2011 02:51 AM #17
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

So my question is this: Who has a better feel for what constitutes fair market price?

Buyers or sellers?

Without question, buyers have a better grip on the market. They have seen competing properties and KNOW what is out there, both in price and condition.

As a listing agent, our job is to SELL the property.

We market furiously in an attempt to get buyers.

So why in the world would be so discourteous as to send a buyer away without so much as a counter-offer.

As for sellers that insist on list price ... we have a word for them here:

"Expired"

Jul 13, 2011 03:55 AM #18
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Oh, and here's another point ...

I NEVER blame the buyer's agent. The buyer's agent has the OBLIGATION to write any offer the buyer wants to make. I always respect agents that fulfill their obligation by writing offers that will go nowhere.

Think about that ... it takes a lot of time and effort to prepare an offer. Many times with full knowledge that it is a waste of time.

But it is our DUTY to do so. And professional courtesy demands that our efforts should be recognized and respected.

And the truth is, nobody knows where the seller stands until the first counter offer.

Jul 13, 2011 03:59 AM #19
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Bryan Robertson
Los Altos, CA

Both parties have to be open to negotiation.  Any offer, even a lowball, has value.  If the seller has a reasonably priced home, a lowball could be just the ticket to get other offers in.  Even if the seller's home is overpriced, any offer will break the ice and get more buyers interested.

Jul 13, 2011 04:28 AM #20
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Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

I folded recently after what I considered to be badgering. I'm glad I did. Sometimes you just have to make a tough call.

Jul 13, 2011 04:51 AM #21
Rainmaker
631,213
Nancy Conner
Olympia, WA
Olympia/Thurston County WA

I'm with you that I hate to see a seller (or buyer) just reject an opportunity to negotiate as I have seen some deals come together that I really didn't think had much chance.  If my sellers receive a really lowball offer, we sometimes counter back with a teensy tiny reduction in price just to send a message that yes, we will negotiate, but you've gotta get a bit more serious Mr Buyer before we're showing much of our hand...

Jul 13, 2011 06:26 AM #22
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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Richard, this exact thing happened to us last month. Thankfully we found a proberty that was better suited to the Buyer.

Jul 13, 2011 10:36 AM #23
Rainmaker
690,050
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

I have sellers reject offers all the time. When there are multiple offers coming in and some treasure hunter submits a low-ball offer, why bother?

Jul 13, 2011 11:21 AM #24
Rainmaker
3,983,763
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Richard...a rejected offer doesn't always mean nonegotiations.  For somesellers it is making the statement that they are not interested in playuing the gme.

Jul 13, 2011 12:02 PM #25
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Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

I've had a small number of sellers who rejected offers over the years because they made it personal.

Rich

Jul 13, 2011 12:29 PM #26
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

If I have multiple offers, I tell all the agents to submit their highest and best offers. If I have a strong offer in hand, I will tell them they they need to "get real" to get in on the action.

Jul 13, 2011 12:55 PM #27
Rainmaker
647,093
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

A seller needs to remember that this is still a business transaction and try to keep the emotions out of the deal.

Jul 13, 2011 02:47 PM #28
Rainmaker
217,258
'The Diamond Group' 'A Cut Above The Rest'
The Diamond Group @ Keller Williams - Lubbock, TX
Lubbock Texas Real Estate

Richard' I always tell a seller we are halfway there someone wants your property, no offer is an insult, merely a beginning

Jul 13, 2011 02:57 PM #29
Rainmaker
427,439
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Nothing would get sold if seller's didn't respond to low offers. It's an offer, not an insult, and sometimes can effectively be negotiated up.

Jul 13, 2011 04:24 PM #30
Rainer
212,055
Tim Peterson
Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI
Realtor Safety Training Classes

Hi Richard--too true ,,,now if they all would just let us do our jobs-negotiation is critical

Jul 13, 2011 04:58 PM #31
Rainmaker
637,633
Maria Morton
Chartwell Kansas City Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Richard, every now and then we do see people who just want to walk away instead of negotiatiing. I'm not sure why they bother looking or listing.

Jul 13, 2011 08:31 PM #32
Rainmaker
801,336
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

I have come into so many sellers that won't budge these days.  The buyers just want to feel like they got a deal.  It's the game of real estate.

Jul 14, 2011 12:46 AM #33
Rainmaker
889,755
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

MY FAVORITE COMMENT:  Overpriced sellers are a dime a dozen. Qualified buyers are scarce. Do the math.

I am going to quote this statement in my sales presentation.

Jul 14, 2011 02:23 AM #34
Rainmaker
535,255
Gay E. Rosen
Julia B. Fee Sotheby's International Realty - Larchmont, NY
As Real as Real Estate Gets!

Richard: I totally agree... always keep the gates open.. LOL G

Jul 14, 2011 02:25 PM #35
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