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Buying houses is NOT like going to a Garage Sale....

By
Real Estate Agent with 1

When I was moving from my apartment into my house alot of my furniture and knick knacks Garagesale were never going to "fit in" to my new decor.  So I decide that instead of my just tossing my good "junk", I would sell it.   In my history, I never held a garage sale and at this point in my life, I never even went to a garage sale, so I was in for a rude awakening, little did I know how my feelings would get stomped on.  Did I know that holding a garage sale, I would have to be thick skinned? 

The weeks prior to my big garage sale debut, as I was packing boxes that would me making the move and I was simultaneously packing boxes that would never make it to my new abode.  I sorted threw my stuff for weeks on end, until I was at a point that my walls were bare, my drawers were empty and my closets were desolate.  The day of my garage sale it was a nice 90 degree hot and humid day - I was up before seven and was outside unveiling my goods.  There were more people showing up at the "pre-shop" time than I ever thought.  I was getting angry because people were going through my boxes before I even got to unpack.  I remember getting testy at people asking me questions of items that they were searching for, "Excuse me, do have the pre-war glasses?"  My knee jerk reply was something like "NO.. Do you see the pre-war glasses?  Come back later, maybe something will show up".    But what was getting me even more mad was not the early shoppers, but rather the "bargain hunters".  I sat in my apartment for weeks and packed these boxes, I priced each item - at what I thought to be reasonable and fairly cheap.  How dare they even attempt to bargain with me.  If I had something priced at $2.00 - the first price I was offered was $.50 ! 

Within four or five hours of this sort of abuse - I just about had it.  I was NOT the garage sale type of gal that would sit in this blistering heat and be taunted by people getting the best of me.  I remember this one poor man that got out of his car and made a  bee-line right to a pair of Sterling Silver earrings that was priced $5.00.  He looked over the earrings and then  yelled out to me  "I'll give you $.25!"      

I replied - " HUH??? ARE you kidding me, look at the price SIR".   

"OK, $1.50". 

"NO - put the item down", I said...

"OK, $3.00".

Finally after having to deal with more people trying to bargain and beat me down, I could no longer handle this.  I remember going over to the man and taking the earrings out of his hand and telling him "NOW - its $25.00 for you and I and NOT bargaining".    I was serious - he annoyed me to no end.  I decided that even if he did offer to pay me the ridiculous amount that I ordered, HE was NOT getting the item.  He insulted me enough and I am not going to play with him anymore. 

Why am I talking about a garage sale?  Because, I have had more than 7 offers on 7 different properties this past week, which were all by builders and all the properties were reasonably priced.  I am finding that everyone wants to pay the cheapest and sell for the most.  Fellas - it won't work that way

All my offers are below - and I mean way below asking price (seller asking 2 Million - offered less than a million).  I have had more than one builder tell me that they will give me a "gift" if I get this for them.  OK, but - number one - that is illegal.  Number two - I am embarrassed to submit that offer.  If this was my seller and I got an offer like you are trying to submit - I would deny the offer without a counter offerNegotiate_landingpage

Here is the thing - my job is to negotiate.  I will negotiate to win - and I am good at it.  I know what to say, how to say it and trust me I stick with it -  if the offer is good and the terms are good.  I will get you a property if the offer is  REASONABLE.    Which none of my seven offers were even close to good.

Now, I have worked with low ball offers and these were not low ball offers -  These were off the chart rude offers.    I can tell you, the only time that I see low ball offers work is if:

  • The property has been on the market for longer than a 6 or 7 month span.
  • The original asking price been lowered more than twice and more than $100,00o within a short period of time.
  • If the property vacant or distressed.
  • The owner is desperate to sell.

Which none of these factors existed with my builder's offers.   The properties that they were bidding on were what I consider to be "hot properties",  they were only on the market for less than a week and none of the sellers were desperate to sell.    

Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Christine, I used to have the same response to low ball offers until a young guy set me straight.  He said that he had certain goals he needed to acheive in the transaction the same as the seller has his goals he needs to achieve.  It's a business deal and he really didn't care if he became a friend of the seller. It was strictly business. If the seller chose to take an offer as an personal insult, that was the seller's problem.  But if he never counters, he'll never know what might have happened.

Real estate is an emotional and inefficient market.  Sellers are greedy and buyers are cheap.  Sooner or later they meet in the middle.  I find it best to stay objective and not to take anything personally.  Just say yes or no or make a counter.  No need to whine or get angry.

I think one can learn a lot about negotiating by going to garage sales. Everyone has a price.

Jan 15, 2007 06:04 AM
Christine Forgione
1 - Whitestone, NY
Associate Broker

Dan - I agree - a waste of my time, the builders time, the sellers time.  I agree withyou - there needs to be validation as to why there is a low ball offer - not on hot properties - like these that were being bidded on.  Thank you for stopping by. 

Tim - You said - Just say yes or no or make a counter.  No need to whine or get angry. _ Let me be perfectly clear that I am not whining - this is part of a blog - I am posting about a situation that has taken place - don't ever view my blogs as a whine fest.  Secondly - Not angry - I presented the offers - by LAW I am required to - I clearly made it clear to the builder that had these been MY sellers - then I would have not made a counter offer - as far as I am concerned - a SERIOUS buyer does NOT go into nego by going in with a 1/2 offer.  That is just not a good starting point. 

Jan 15, 2007 06:17 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

your posts always make me laugh.

i would rather be shot than host a garage sale

 

Jan 15, 2007 06:35 AM
Christine Forgione
1 - Whitestone, NY
Associate Broker

TOM - LOL - I wishyou would have told me about that - before I Did a garage sale.. Because I agree with you 100% -

Neva again!

Jan 15, 2007 06:44 AM
Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO
Christine:  Thought maybe you were going to use the emotions of selling your personal 'stuff' and compare it to a seller's emotions when buyers pick apart their home, in an effort to drive down the p rice.  Good thoughts.
Jan 15, 2007 08:04 AM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Christine,

Thanks for the post. Low ballers, whether investors or owner occupants get the necessary information they need from me to determine what a fair offer price is (comparables). If they then choose to be ridiculous, I present the offer, with a caveat. I tell them they may not get a counter, the sellers under no obligation to counter. More importantly, while your trying to flush the seller out, the more savvy buyer, who understands the market and the value of the property in question is closer to a signed contract. As a listing agent and buyer's agent, I have dealt with sellers who refused offers where the low baller increased his offer to a more acceptable amount. They simple made a character judgement based upon the buyer's offer and decided that they did not want to deal with that kind of individual. The sellers sold and not under duress. They were not the losers.

Jan 15, 2007 08:04 AM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

'Its not you.. its me"

That might be a good response to the low-ball.  Test how interested they are in the property.  I have often found that the best question any one can ask to a request to negotiate, or a statement of price is...

"How did you arrive at that number?"  It throws them off every time.

Jan 15, 2007 08:09 AM
Lucky Lang, II
Personal Investor - Davenport, IA

My suggestion would be to just donate a lot of your stuff to a local charity who will sell the items to make money for themself. Its a good write off and it also saves you the time/trouble of having to deal with people like that. 

 

Also with the "low-baller buyers", youll have that. I personally dont blame them, if I had the chance to save a ton of money on a whim of throwing in an offer that low I would too (it doesnt hurt, right?) I think that you just ended up getting frustrated over the garage sale and it drug itself into your job. Id just suggest a vacation to cure that one ;o)

 

Good luck on those listings, hopefully you get your full price!! 

Jan 15, 2007 08:52 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Hey NY Chic aka Christine...

NEXT...

No. I don't think I get points for that. LOL.

Not much left to say here that has not already been said.

Hey maybe I get points for telling you there's not much left to say. LOL.

 

Jan 15, 2007 10:17 AM
Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ
Half the asking takes low balling to a new extreme!  Only really appropriate if ... i don't know when!  Don't get me wrong - I do what my client wants me to do.  Write an offer for 95%?  90%?  Sure - and I explain the odds that they'll actually get the property or not.  But 50%....wow!
Jan 15, 2007 10:36 AM
Christine Forgione
1 - Whitestone, NY
Associate Broker

Joan - LOL - I could have gone that route.  Maybe next time.  :>

William - You are right.  Listen, if I totally agree with my buyer customers that the property is well over priced - I let the listing agent know #1 and #2 I let the buyers be aware of what has sold and for how much and where.  But, in NY, I am in a catch 22, the sellers weather they are my listings or not - I always work for them, out of sub-agency.  IF I was working as a buyer agent - then there would be no problems - I would try to work the deal the best I could.  But, None of my buyers are my clients - so I am working for the sellers - almost by default, if you will. 

Lucky - couldn't be that Lucky - My garage sale was almost 3 years ago.  I just felt like that day when these offers were getting presented to me.  (See post to Bill) ^ Above.

"The Lovely Wife - you should always get points... HEY.. I saw the pre-site.. LOOKS real good.  Call me Tomorrow if ya get a chance.  K?

Kaushik - You said it all!!

 

 

 

Jan 15, 2007 11:21 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

K

Jan 15, 2007 11:36 AM
Debbie Lowry
Keller Williams - Bothell, WA

I have seen too many sellers get offended at a low ball offer and then not respond at all. Usually end up not wanting to work with that buyer...period! Better to make a low offer within reason.

Often it is so much easier too for showings when the seller is gone because than if the buyer makes a rude comment about the interior or furnishings the seller doesn't have to hear it.

 

Jan 15, 2007 11:53 AM
Rick & Ines - Miami Beach Real Estate
Majestic Properties - Miami Beach, FL
I was cracking up reading your garage sale story Christine - I had my first experience about 2 years ago and it was exactly as you described it......it's good I can laugh about it now.  We're also receiving all kinds of really low ball offers, it does feel like garage sale style at times.  Great analogy.
Jan 15, 2007 01:51 PM
Ken Spencer
Buckeye, AZ
for Verrado, Buckeye, Sundance

Your story about the garage sale cracks me up.  I can relate to my first garage sale as well.  What an act.  Those people that are professionals at buying garage sale stuff think they can pull the wool over everyone's eyes.  I find many of them extremely rude and off the wall with their offers. 

Excellent post.

Ken

Jan 15, 2007 02:16 PM
Christine Forgione
1 - Whitestone, NY
Associate Broker

Debbie - and that is exactly what happened.  All the properties got higher, more serious offers and the sellers took those without a counter offer.  My builders losses out and so do I.  What will be will be - maybe next time ..

Rick & Ines See your up late again,  HOW do you get up in the morning?  Hmm - like I should talk.  I have never forgot my first sale - I made alot of money, but ohh geesh - they are tough people.  It was rough - I wont be doing that anytime soon!

Ken - Amen to that.  You said it!

Jan 15, 2007 02:36 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Christine......   I have never held a garage sale and don't pin that on me just because I am a male...  ;o)  I have gone over to my mom's several times to help. Yes, you will get some people that just think they can low ball. And if they get it their way, they think they are great.

As Brian B. said, some buyers are not realistic. If they did their homework, they would know what the market is like, at least a range. I wonder if it tells us that some of these buyers aren't in the market.... I really wonder.  Overall...just keep the head up I guess.  thanks for sharing.

PS>... I like the touch on your comments. I didn't get a chance to read all of these comments and not sure if anyone mentioned anything.... but I like how you are linking each name. Creative....

Jan 16, 2007 01:46 AM
Robert Hammerstein -
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Christine,

What I got from your Blog was that you are angry with Low Ball Offers.  I never get angry.  Instead, we tell our Sellers to be flattered that the Buyer thought enouugh of their home to make an offer for one.  Then, if the offer is too low, we can counter them and see if we can come to a meeting of the minds.  And last but not least, Don't be angry at the ones that come in low but rather be angry with the ones that look but don't make any offer at all.  That usually puts things in perspective.  Market value is after all is based on what a Buyer is willing to pay for a property.  Depending on how long a Seller wants to wait for the "right" buyer to come along, we like to work with the ones who make the offers since you never know if there will be any others.  Especially in this changing of the tide that most of us are working with.  Great post though - I loved how you handled that little old man! :)

Lisa

Jan 16, 2007 02:09 AM
Joe Gomez
Realty Executives of Treasure Valley - Eagle, ID
Chrisitine yeah everyone wants a bargain in all situations so counter counter counter
Jan 16, 2007 08:44 AM
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May 23, 2007 12:24 AM
#36