The Urban dictionary defines the word dumbass as "someone who looks up the word "dumbass." What is a rejected offer in real estate? Can a seller just flat out reject my offer? Why didn't they just "counter?"
Lets go there and pick apart what makes you, your offer and your agent a potential dumbass.
Lets pretend Johnny finds a home on the MLS listed for 300k. It's a traditional sale, meaning it's not a foreclosure, HUD home, short-sale or even an estate sale. For this example lets also assume the buyer has no inside information that would lead him to believe that the home is "easy prey." It didn't catch fire, and it's not inhabited by termites, flooded waters or unknown equity eating parasites that have yet to be discovered by man. Currently the market in Houston is flat and generally speaking, both buyers and sellers are somewhere in the middle of the pull on the rope as far as market conditions go. If Johnny offers 250k because he's drunk on HGTV then there's almost a 100% chance his offer will get rejected.
But why?
Most home sellers share love, adoration, memories and even affection for their home. We typically believe our home is worth more than what the market bares. If Johnny submits an insulting offer the seller is likely to shut down, and to be fair, I don't blame them. An ugly offer shows that the buyer isn't serious. It says that buyer is shopping for "a price" and not a home. These types of buyers wear people out. Simply put, they piss people off.
Greed doesn't geneally get you a good deal in real estate. Timing, patience and practicality does. Find the right home, in the right neighborhood and if your careful with your research, you'll have yourself a rewarding and financially successful piece of investment. Repeat enough and you'll be wealthy.
Lazy buyers offer stupid prices because they don't believe in research. This is what makes them the quintessential dumbass. They think making horrible offers makes them strong, clever and somehow a sage negotiator.
The sad part is, every now and again these dumbasses find a home where they can pay far less than the list price, but suffice to say, it's a pile of shit in a pile of shit neighborhood. There's a reason it's on the market for 237 days. If you get a tremendous deal in the hood there's a significant probability that you are nothing more than a sucker. And suckers are born every day.
The best answer to a low ball offer is simple.
1. Tell the buyer, "Your offer is rejected."
2. "Resubmit your offer again."
Negotiating with idiots usually creates turmoil, unhappiness and frustration. Treat tire-kickers the same way they have treated you.... with little to no care whatsoever. If a buyer is serious, they'll jump in after their ludicrous offer.
A lot of people will submit a stupid offer just to see where the seller is at. Real estate isn't poker, and decisions aren't made in seconds or minutes. There's no dealer to say, "TIME."
Never negotiate with terrorist and never, ever appease dumbass offers. The less communication with an unrealistic buyer, the better. If they're serious, they can prove it.
