Killer Negotiating in a SELLER’S Market?????

By
Real Estate Agent with Liberty Homes RS-#62825

 

A thought to all home buyers:

 

Okay, so now the inventory of homes are at an all time low, and we’re looking at a 4 month inventory of homes ..possibly 3. And this is the time that you want to offer a lowball price on a property that you KNOW will have multiple offers.  WRONG!

 

The BELOW than “normal” interest rates to date have made history. THAT IS A FACT.  Lower prices and lower interest rates meant lower monthly mortgage payments.  Those that do not have all cash down have to rely on making ends meet with a monthly budget allotted for a mortgage payment. AGREED? AGREED!!

 

Okay, so now the inventory of homes are at an all time low, and we’re looking at a 4 month inventory of homes ..possibly 3. And this is the time that you want to offer a lowball price on a property that you KNOW will have multiple offers.  WRONG!

 

If you need sound advice regarding the current market value on a home you would like to make an offer on….ask your REALTOR® for current comparable properties.  If your REALTOR gave you good comps and you try to be a killer negotiator, then be prepared to lose that home you really love.

 

 If you really love that home, you give it your best shot.

 

 OR LOSE THAT HOME you really loved.

 

 Sounds like common sense to me.

 

 

 

Posted by

                                                       

 

Celeste "Sally" Cheeseman  is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs  she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.

 

 © 2007-2015 Celeste "Sally" Cheeseman's

Hawaii Real Estate and Relocation Blog.

All rights reserved.

     

 


 

 

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Rainmaker
1,219,187
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Good advice, no really, it is the BEST advice.  Make your best offer or lose it.

Sally, I like the way you wrote this post.  Hope all is well in Hawaii.

Aug 12, 2012 11:56 AM #2
Rainmaker
1,785,751
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

....and it sounds like common sense to me, too, Sally. Like yours, our market is not one to try to 'get a deal.'

Aug 12, 2012 12:07 PM #3
Ambassador
1,090,784
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Margaret:  They sure do... sad they waste all that time and keep losing the house they really love.

Hi Mary! All is well... That's the bottom line...if you really love the house...make your best offer.

Lottie: It really isn't the time to play let's make a deal...it IS a seller's market...and they can choose who they like.

Aug 12, 2012 12:19 PM #4
Rainmaker
1,518,342
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

I just posted something yesterday I think that talked of the changing times. I talked about school starting but ended up saying the same thing about real estate - more or less!  Have a great week, Sally!

Aug 12, 2012 10:22 PM #5
Rainer
278,100
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

One would hope that the agents working with the buyers would be able to show the data and eductate them.  However, some people just listen to NATIONAL real estate news and think it applies to their local market.  That is just plain wrong.

Aug 13, 2012 01:10 AM #6
Rainmaker
5,029,980
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

HI Sally..... now we need to re-educate buyers and they need to understand that once again the market has changed and it's no longer a free for all for buyers....it's a seller's market now....

Aug 13, 2012 02:12 AM #7
Ambassador
1,090,784
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Gary:  And...that is why 'WE' as REALTORS....are like chameleons...we change...with the changing times...good story you have!

Kathryn:  There are some people who are just adamant about having control over the negotiation process.  That's ok though.  If they keep losing the homes they really like then they may just start listening and really looking at the facts (comps) If not, they'll get discouraged and most likely will go rent...and keep paying someone else's mortgage.

Aug 13, 2012 02:13 AM #8
Rainmaker
723,926
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Sally, Too bad some have to experience loosing out before accepting the marketplace as it is, and not as they would like it to be.

Aug 13, 2012 02:44 AM #9
Rainer
166,169
Bob Usey
Bob Usey Properties - Gulfport, MS

Sally:

Good article. I do not sell but a few houses during the year, as my sales are primarily commercial. Your same advice applies to commercial transactions as well.

Bob Usey Properties

Mississippi Gulf Coast

Web Site: BOBUSEY.COM

 

Aug 13, 2012 02:44 AM #10
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

I'm having this conversation more and more here. It really is the best advice we can give our buyers. Well said, Sally!

Aug 13, 2012 06:16 AM #11
Rainmaker
889,562
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Sally - There are two kinds of inventory - the homes that everyone wants and the homes that no one wants.  If a buyer wants a desirable home, then they need to offer the value that the current market has set on it or risk losing it to another buyer.  I think buyers get fooled by all the stale inventory that's been on the market for many months (or years, in some cases).

Aug 13, 2012 11:46 AM #12
Ambassador
2,079,919
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Buyers need to get it into their head that in this market they need to come up with a great offer from the start or they are NOT going to get the home!

Aug 26, 2012 12:26 AM #13
Rainmaker
1,320,331
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Sally, 3-4 months supply of homes translates to a sellers market.  I was a little worried about where you were headed in your first paragraph, but you finished it nicely.  This is NOT the time for low ball offers...of course, every market is different, but overall buyer markets and low ball offers are quickly going away.

Sep 02, 2012 06:03 AM #14
Rainmaker
372,912
Terri Poehler
Realtor - Coral Springs, FL
Coral Springs Real Estate Agent

This exactly the way it is here in Southeast Florida. Same thing. It's amazing.

Sep 06, 2012 11:36 AM #15
Rainmaker
519,027
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Sally ... It's true that buyers find a home they like in this challenging market they should get involved and make a purchase offer as soon as possible.   Otherwise, they will miss every shot they don't take.

Nov 23, 2012 03:46 PM #16
Rainmaker
539,081
John Mosier
Realty ONE Group Mountain Desert - Prescott, AZ
Prescott's Patriot Agent 928 533-8142

Thanks for your post, Sally. This is the way I try to set my Buyers straight on the negotiating:

Would you rather pay a little more and get the house you want or keep looking?

I like what Gail had to say. The homes that are appealing and priced right will sell through quickly leaving the less-desirable ones on the market for a long tiime.

Mar 07, 2013 01:21 AM #17
Rainmaker
1,694,616
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I love the comment -  There are two kinds of inventory - the homes that everyone wants and the homes that no one wants.  If a buyer wants a desirable home, then they need to offer the value that the current market has set on it or risk losing it to another buyer.  That is so so true - and hard to explain to sellers that their house is one of the ones no one wants! 

May 21, 2013 01:10 PM #18
Rainmaker
200,319
Debbie Holmes
Gold Key Real Estate - Boise, ID
Gets the job done!

I have had clients that want to low ball multiple offer properties.  I ask them dryly if they want to do an excercise in offer writing.   Then I assure them that I do not need the practice. 

Nov 09, 2013 10:49 AM #19
Rainmaker
798,409
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Sometimes you have to pay pretty close to list price if you are really in love with a home. Especially if there are other interested buyers. Otherwise, like you said, there is a chance you will lose that dream home to someone else.

Feb 03, 2014 12:35 PM #20
Rainmaker
42,678
Pat McCormick
Long and Foster Manassas - Manassas, VA

Good post!  Even in our market where the home inventory is nearer to 2 months, we have buyers who want to make lowball offers.

Feb 13, 2014 01:24 AM #21
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