Now that the market has changed there are fewer "low ball" offers too be made. The days of everything available being a distressed home and no one buying are long gone. Thus, a buyer is very likely to be working to by from a traditional seller. If the house is priced where it should be then it will sell at or close to that price.
This blog post I am sharing gives two reasons why a low ball offer may not be the right way to "start the conversation." 1) You may offend the seller. 2) Another much better offer may come in.
A tale of two home buyers.
"My buyers hope this will start the conversation." That was the response from an agent when I asked him if he was sure he wanted me to submit his buyer's lowball offer on my listing that was priced at market value. I explained that I thought my sellers would be insulted but the response was the same, "we're just starting a conversation".
Yes, I get that. But starting a conversation with an insult is never a good plan.
So, I met with the sellers and tried to soften the blow as I shared the offer that was thousands below our list price, but all my sellers felt was insulted.
This was the home that they had loved and cared for. They raised their children in this space. Grampa's sweater still hangs in the closet he called 'his room' when he came to visit.
The children have grown and grampa's been gone 3 years, but the memories are precious.
Yes, it's "just a house" and we counsel our sellers every day to not to take it personal, not to let emotions cloud their judgement, but for some sellers, this is an impossibility and something every buyer should understand.
Now, don't get me wrong...memories & seller emotions do not increase the monetary value of a home. The home is worth what the market will bear, but let me tell you how this played out.
Despite my suggestion that we counter the low offer, the sellers would not counter an offer from a buyer they felt had insulted them.
Enter homebuyer #2 who included a letter to the seller with their offer. The letter was written by the buyers introducing themselves and telling the seller a little bit about who they were. It explained how long they had been saving for their first home and how this home was a bit more than they could afford even though they knew it was worth what it was listed for.
The buyers also shared all the things they loved about the home, how they looked forward to raising their family there and included a photo of their family. They became real people to my sellers, people who were going to love this home as much as the sellers had, and like the Visa commercial..that was priceless.
I probably don't have to tell you how this story ends. Homebuyer #2 will soon be making their own memories in their new home and my seller is thrilled that they could help make this happen.
Lessons in Home Buying
It's always important for a buyer's agent to communicate with the listing agent and develop a relationship. Some people call this Schmoozing. I call it being a smart real estate agent!
Had buyer's agent #1 felt out the situation just a bit, he might have learned that the sellers were emotionally attached to their home and his "opening conversation" could have gone a littel differently.
Sometimes it's not all about the money.
Amy Jones, REALTOR®, CNE, EPro,CDPE, CSSPE
RE/Max Infinity ~ 2450 S. Arizona Avenue ~ Chandler, Arizona 85286
Chandler, Sun Lakes, Gilbert, Tempe & Ahwatukee Real Estate
Voted Chandler's BEST REALTOR for 3 years!
Phoenix Business Journal "#16 Real Estate Agent" in the Phoenix Metro Area