I've got two buyers that I'm about ready to fire. I've ran into the type before, but usually they are much more upfront about their intent to "steal" a property. These two I'm dealing with now seemed to be level headed and ready to buy. I got both qualified by my lender of choice and talked about what they were looking for. Showed them some of what's available on paper, what price range they'd be in for their wants & needs & what on average those homes were selling for as a percentage of list price.
Both buyers (separate clients, separate meetings) thought everything sounded great so we embark on the fun journey of looking at homes to find the right one. After just two days of searching one buyer wants to make an offer on a home that's listed for $204,995. This home has been on the market for 16 days and has had a lot of activity according to the listing agent. It's very clean, priced well & has all the features that buyer "a" is looking for. Since it has had decent action and buyer "a" is extremely interested, we set up a second showing the next day & I bring my offer paperwork because this buyer has indicated that they may want to put an offer in.
After the second showing buyer "a" wants to put in an offer. Thinks that starting at $150,000 is a good plan but is willing to go up to a max of $157,500. Let's flashback to our original meeting where we covered all the stats, the average list to sale price ratio for buyer "a" area was 95%. So on average the home will sell for $195,000. I suggested a starting offer of $180,000 and maybe working our way up to $195,000 if buyer "a" was serious about purchasing the home. They refuse to budge from the $150,000 offer. So I instead of writing of the offer paperwork, filled out a cancellation form for the buyers agency. This causes buyer "a" some pause, can't believe I won't write a "good solid offer from a well qualified buyer" when the market is in such shambles.
Bottom line is that both buyer "a" & buyer "b" seem to be hunting for a deal, and plenty are out there to be found. But both are making the focus of their deal the price they pay as compared to the list price, not what the homes market value is compared with what they're buying it for. Buyer "b" was in an even more ridiculous position than I described with buyer "a". I've always fired these clients in the past and moved on to work with serious people who will actually buy a home. Am I going about things the wrong way? Is there a better way to turn these people into real buyers?