Listen to your Realtor!

By
Real Estate Broker/Owner with Real Estate Partners, LLC B 21410

several times lately, I have received several offers that didn't pan out. When I asked the other Realtor how they arrived at their offer figure, they said that the buyer came up with that number. Well, in my experience, there are two scenarios that always show themselves:

1) the price that the buyer wants to pay, or the seller needs to get are both irrelevant. Market value is the only thing that matters. Yes, there are circumstances that will adjust that figure, divorce,financial problems, death, property condition, etc., but by and large, market value is the determiner.

2)  when the buyer makes an offer that is extremely low, they never get a good response from the seller. They are going to counter high, as they perceive the buyer as not being serious.

the point is that the buyer and seller are not in a position to determine market value without the advice of their Realtor. You would not tell your Doctor what to prescribe for a particular illness. You would not tell your C.P.A. How to do your taxes. You would not tell your Dentist the proper way to deal with a tooth problem. 

 

At at the same time, the Realtor needs to take control. Now, it is true that we are required to present any offer, but there are constructive ways to handle it. "Mr. Buyer, if you want to buy this home, we need to be in this price range, as we will get a better response. If not, perhaps we need to be looking at homes in a lower price range". Put yourself in the seller's position: he has a home that is in an active area, a good lot and floor plan. Why would he look at a low price when comparable homes around it have sold for much more. " now, Mr. Buyer, there are neighborhoods around that are much slower to move and not as desirable. Because of the market, we can get you a home at the dollar range that you want to pay. " but I don't like that area as well", says Mr. Buyer. " Well, you like this neighborhood more. Obviously, other people do, as evidenced by the market, so let's make an offer closer to market value, ok?"

  My last point is another trueism. Any home that needs $20,000 in updates will cause the buyer to figure $100,000 in updates in his offer. Mr. Seller, if you have light fixtures from the '70s, it will cost you a few hundred dollars to change them out, before the home goes on the market. It's money well spent.

  Once again, thanks for reading my rants. Steve Houck

Posted by

The Judy Wahba Team at Real Estate Partners, LLC

Judy Wahba - Broker/Owner

Steve Houck - REALTOR-Partner
"The Judy Wahba Team"
Real Estate Partners, LLC

Business: 601-942-2683
Fax: 601-956-7618
E-mail: steve@stevehouck.com

Judy Wahba's QR Code

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Topic:
Real Estate Best Practices
Tags:
selling homes
market value
making offers
buying homes

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Rainmaker
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Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

I think this happens to all of us at least once a month. Mostly from new agents, very rarely if a buyer really wants the house do they not agree to make a "fair" offer based on market value.

Have a great weekend!

Jun 21, 2015 11:12 AM #1
Rainer
164,141
Steve Houck
Real Estate Partners, LLC - Madison, MS

I received 2 offers on 2 houses in the past 3 days $50,000 under market. There is no way that is going to work out. I had a lender tell me that he has a client that has written 5 offers on homes in 2 weeks. You would think the buyer would get it after the first 1 or 2

Jun 21, 2015 11:34 AM #2
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     I've had investors who  low-ball multiple properties, in the hopes of picking up rental properties on the cheap.  Fine, not a problem, I explain to the Seller and/or their Listing Agent when I present the offer that this is an investor, nothing personal.  Maybe 1 out of 20 sellers accept the offer, so it works for the Investor.

    But when a Buyer claims to be looking for a home to live in, they find the perfect house, and they want to offer 65 cents on the dollar.  Forget it!  What a waste of time. 

     Likewise, the Seller who wants to list $50,000 over market "just to see what will happen".   Thanks, no thanks.

Jun 21, 2015 11:58 AM #3
Rainer
164,141
Steve Houck
Real Estate Partners, LLC - Madison, MS

Right Fred! I have walked away from more than a few sellers who wanted to list way above market. Once again, what the seller needs to get is irrelevant. Having over priced listings is no good for anyone. I'll get it when the agent lists it for a year and it doesn't move. Are you ready to get real now

Jun 21, 2015 12:42 PM #4
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Rainer
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Steve Houck

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