Buyer's offer price drops 1% every week the seller waits
I recently wrote an agreement of sale for the buyer
I presented it to the listing agent
It was not even counter offered by the seller
The price of this home was way over Market Value
Our offer was Fair Market Value
Here is advice I was given
When a seller has their home priced too high and a buyer comes in with a reasonable offer, it seems rational that the seller should make a counter offer and work toward a realistic sales price. That doesn't always happen. Stubborn sellers will sit back and...wait it out. It annoys buyers and ultimately hurts sellers. Studies have shown that the longer a home is on the market, the lower the ultimate sales price. So, how do buyers push sellers?
The buyer's offer price will drop 1% every week the seller waits
The more time the seller digs their heals in and waits for the unrealistic price, the lower the offer will be when they finally realize the buyer gave them a good offer the first time. If the seller waits 4 weeks for a better offer, my buyer will be back with an offer 4% lower than last time. This only works when:
- The buyer is realistic
- The buyer isn't trying to lowball
- The seller needs to sell
- The seller faces reality
This hardball tactic is often useful when either the selling agent or seller themselves gets angry at a "market rate" offer. If the home has been on the market for 3 months with no offers, the price is too high. Don't get angry that my buyer makes a reasonable offer. Just negotiate. My buyers may come back to the original offer or they may not. It depends on the circumstances.
My advice to sellers with overpriced properties is to take that offer and work with it. Look at the most recent sales, get a reasonable number in mind, and work out a fair deal. Buyers will NOT pay what you want but they will pay what the market will bear. Keep that in mind and you'll get the home sold.
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Bryan Robertson, Broker Associate | T: 650.799.9951 | Email: bryan@serenogroup.com | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | Sereno Group - Los Altos branch | 369 S. San Antonio Road | Los Altos, CA 94022
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