Pigs Get Fat, Hogs Get Slaughter
This idiom, as defined by usingenglish.com, is used to express being satisfied with enough, in contrast to be greedy and having it become your undoing. This is a lesson which many sellers and buyers of real estate in Lancaster, PA have had to learn.
I have looked back over two deals which have gone south because the seller was a hog (metaphorically, not actually). I represented the buyer in both situations.
In the first deal, I had been working with my buyers for a period of time and this home was everything they wanted. Our offer was accepted and the inspection contingency fulfilled. We were waiting to move forward when the appraisal was completed. One problem, the property appraised $15,000 lower than our offer. It was a split-level and finding comparables was quite difficult. The seller was not willing to budge. We were under contract at $335,000 and he would take no less than $325,000. My buyers said, “No, thank-you!” I checked to see what this home sold for and noticed it closed at $315,000. This seller learned a $5000 lesson at a minimum.
The second deal was under contract for $232,500. The inspections noted some concerns regarding the age of the heating system and some work that needed to be completed. In trying to negotiate a suitable arrangement, my buyer basically stated, “I will be satisfied if I can get $5000 towards repairs.” Again the seller was unwilling to budge. This home later sold for $214,000, a $13,000 decision.
If you are a seller of real estate, it is important that a good, strong offer in your hand is often one you need to negotiate to keep together. Do not learn the lesson, “Pigs get fat, hogs get slaughtered!”
Ron, I agree, NAH!
Sharon, good luck and I look forward to your future post.
Dana, I am sure many folks have a lot more stories than I do. Thanks.
Beverly, that saying is another one I could use. Your story has unfortunately been repeated over and over during the last five years. I have also found that way too many agents are unable to do really good CMA's. For a seller, this is of utmost importance.
Cal
On the other hand it looks like both buyers didn't get the property they wanted over $ 5,000 dollars. It looks like both parties may have missed out on something.
It is never easy in a transaction when the appraisal comes out lower but it boggles my mind that a seller can be so stubborn when the likelihood is that the next appraisal will be lower, at least until we see the market turn around. Likewise, it is disheartening when a seller won't come around after a home inspection, as long as the buyer has been reasonable in his request.
What a great way to show sellers not to become greedy. Congratulations on a feature well written.
Of course the Buyers need to think too. In your first example. The seller moved 10K but the buyer could not budge 5K.
That is reality looking at you in the face. Appraisals are becoming an issue that everyone has to deal with.
Cal:
Your buyers seemed to be very reasonable people. Too bad the sellers weren't. I pity their agents who were not able to convince the seller that the offer on the table was the one they should go with.
Good title and post Cal. Jon Quist also makes a good point in support. Your house is only worth what the market will bear, and only then if the Appraisal verifies that value. It's too bad that your buyer was more than reasonable and still didn't get the house.
Hi Cal,
Great catchy title. I can understand your frustration as Buyer's Agent to know that your better compromises did not receive due respect. Be sure to keep these two case in your arsenal when seeking to salvage future deals that did satisfy all contingencies.
Cheers.
Good article and good insight. This can often be avoided if the listing agents make a little more effort to education their clients. Then, it will be a win for all involved.
I hadn't heard this saying, but I definitely have seen similar situations happen.
Cal, thanks for the reminder, nobody wants to leave extra cash on the table, yet excessive greed often backfires, oh to know the difference.
I have saw the same thing happen many times. It is easy to do, even I have some land for sale that I wish I would have taken offers I had before. I am sure it is going to cost me over $30,000. I was planning on holding the property for several years and and no idea the market would get as bad as it has.
Some Sellers have to learn a hard lesson when they come back too aggressive to an offer. Understanding the market and responding accordingly will get you a good price and moved on to your next adventure!
Cal, I get your point, but in my world, I don't usually find fault with the client entirely. The agents must take some responsibility for not having the deal go together. For example, when a buyer makes an offer, guided by his agent, and the appraisal doesn't support it, why wasn't another appraisal called for? That would be my first inclination, if I had counselled my buyer correctly when they made the offer, or if I had counselled the seller as the listing agent. If the market is in a state of flux, as I understand that it is right now, appraisals will typically be lower than the action in the market, as appraisals are based on past sales. However, a professional appraiser will also note the trend in the market and be guided the principle of market anticipation in his report notes. It is the agent's job to advise and guide the client, buyer or seller, to find the common ground that makes the deal go together. Few clients can stand up to the facts when faced with the truth properly presented to them. Does happen though. Happy selling and I liked your title. I'm sure your second quarter will endow you with success.
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