So Your Buyers are Unwilling to Negotiate?

Reblogger
Services for Real Estate Pros with CMIT Solutions

Really enjoyed reading this.

Just curiuos - is this typical? I know that here in Houston it is a very tight market; for example, one of my clients finally was able to get a contract on a house after offering 5%+ over the list price (his 3rd offer on a home (lost the first 2).

It's sad - because there are so many folks looking for homes; and rates are excellent right now.

Here's hope things get better for all of us!

Original content by Tammie White, Broker

So Your Buyers are Unwilling to Negotiate?

So Your Buyers are Unwilling to Negotiate?The other day I shared a post about a listing agent who was waiting 30 hours to receive an additional offer.

We submitted our offer on Sunday evening. It was set to expire at 5 p.m. on Monday evening. At 4:55, I sent a text asking the listing agent if they were responding to our offer. He said the seller was on his way home from work and they would respond ASAP.

At 7:10, I still didn't have a response. When I contacted the listing agent again, he said the seller didn't have time to get to it and they were still expecting another offer that hadn't been received. They had been waiting for that offer since 2 p.m. on Sunday.

I explained that our offer had expired at 5 p.m. but since he had told me a response was coming my client told me to wait to see the response. He goes on to say, he thought the expiration was for 8 p.m. and that's why they hadn't responded. I told him he should have looked at the offer more carefully. He said he'd get back to me by 8. My client wanted the house so she had given me the authority to extend the time.

At 8 p.m., I get a Multiple Offer Notification giving us until the next day at 6 p.m. to submit Final and Best. My client was ticked and really wasn't sure the seller actually had another offer in hand. She felt they were trying to solicit a higher offer rather than just countering to our offer. She decided to let the deadline pass without nibbling. Our previous offer had expired so I didn't contact the agent. 

At 6:05 p.m. Tuesday, I get a call from the listing agent.

Listing Agent: I was just calling to see if you are letting your current offer stand or submitting a Final and Best.

Me: No we aren't submitting a Final and Best and since our offer expired yesterday, I felt no need to contact you. The buyer has moved on.

Listing Agent: So your buyers are unwilling to negotiate?

Me: No, my buyers were perfectly willing to negotiate but your client never countered to their offer. Instead he waited until another offer was received and then hit the buyer with a Final and Best notification. Your client was the one who wasn't interested in negotiating or he would have responded to the buyer's offer by the expiration. 

Listing Agent: Well the seller was unwilling to take anything less than a full price offer.

Me: So I am correct in saying, he was the one who was unwilling to negotiate. Instead he used my buyer's offer so he could send out a Multiple Offer Notification and ask for Final and Best. Basically, driving up the price of the offers.

Listing Agent: Sorry you see it that way.

The Franklin TN housing market is a tough one for buyers right now. Sellers hold all the cards or at least they think they do. The reality is that buyers have options as well. In my opinion, it's best for buyers to just walk away if they haven't received a response to their offer by the deadline. Unfortunately, buyers are so worried they'll lose a home, so they ignore that counsel.

Take the advice of your buyer's agent. Then when you don't get the house, at least the seller won't be getting a better offer because he used your offer to drive up the price.

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Tammie White, REALTOR®
TW Realty Group
Benchmark Realty LLC
318 Seaboard Lane
Franklin TN 37067
(615) 495-0752 Direct
Email: Tammie@TWRealtyGroup.net
 
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Benchmark Realty LLC. Any party who uses this material without the permission of Tammie White is subject to copyright infringement and possible lawsuit.
Posted by

Al Rodenburg - NMLS# 272775
Sr. Mortgage Banker

Comments (1)

Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Al, thanks so much for the re-blog. I hope this doesn't become the new normal because if it does, I'd have to get out of the business.

May 16, 2014 02:22 PM