Why I Wanted My Clients To Overpay For Your Overpriced Listing...

By
Real Estate Agent with RE/MAX Compass, formerly RE/MAX WHP 0524642
https://activerain.com/droplet/4TFR

A few month's back I helped a pair of super duper clients buy the home of their dreams. They loved it. Every square inch. But that's not why I talked them into offering full-price when I knew it was stupidly overpriced. 

The home was listed for $500,000.0 but it "comped out" at $435,000.00. The owner had over-improved and over-flashed every single square inch. My initial call to the listing agent went really, really well. She explained to me that she KNEW her listing was bloated with hot air, but that she was "just doing what her seller asked her to do." Right there I knew she was actually an asset to my buyer versus a formidable listing agent who I'd have to negotiate with. Perfect! Her admission that she was a mouth piece and order taker was huge. 

Betty (listing agent) went on to gloat about having over SEVEN offers and that "a couple of agents were whining about the comps, but that the seller was ONLY going to sell to a buyer who fell in love with his home (and appreciated it.)" This is where my incredible and unparalleled experience and good looks kicked in. (I expect sarcastic comments below...making sure you're reading.)

 

I knew that if my buyer offered FULL-PRICE with a sappy and ridiculous letter stroking the sellers ego that we'd get the home. And we did.

More importantly, I KNEW this home would NEVER "hit value" or APPRAISE. And it didn't The home home appraised @$450,000.00, 15k above the comparable sales. My buyer gladly split that overage as we were able to cut the difference with the seller.


RECAP...

 

1. Clear the table with a ridiculous over priced listing by offering it. 

2. Genuflect and praise the seller for his amazing ability to build such an out of this world home. Take selfies in front of the home as seller watches from his convertible down the street. This makes him feel like a boss.

3. KNOW your comps, neighborhood and business and let the process break the seller. Who says you can't PROTEST the appraisal as a buyer? Sounds ridiculous, but it makes sense!

4. Ha Ha. Play the game then brag about it. 

 

Posted by

 

 
Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)

www.GiveMeMyHomesValue.com

www.EverydayHoustonHomes.Com

 

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

 

 

 

 

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Rainer
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Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

Very fun read Greg. And perfect example of using your industry knowledge to do what your client wanted. You may have thought and known the house was overpriced, but if your clients were willing to pay a certain amount, figure out a way to get there. You earned that commission.

Jul 29, 2016 05:29 AM #1
Ambassador
2,844,886
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

haha (that's my sarcastic comment you were looking for)

Last year we had buyers who paid $50,000 over appraised value for a property because they loved all the extra overbuilt for the neighborhood bells and whistles just like the buyer.  Same as you I knew going in.  But the deal was my buyers were putting $100,000 grand down so the loan still worked for them to be a 80% of appraised value loan.  Eventually because it's lake property and people are constantly buying, scrapping and building a new house on those lots the neighborhood will catch up and pass this house.

Jul 29, 2016 05:42 AM #2
Rainmaker
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Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Very clever indeed.

Jul 29, 2016 08:57 AM #3
Rainmaker
3,488,581
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Greg. Very good strategy because your clients loved the home.

Jul 30, 2016 02:31 AM #4
Rainmaker
1,558,015
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

It does work.  I remember a few times when I've actually presented my clients offer to the seller (with their agent present, of course), just so I could have the pretty face time.  LOL  

Jul 30, 2016 04:54 AM #5
Rainmaker
527,231
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

I have seen this strategy work, especially when there have been several other offers at the "correct" price.  Great work and you definitely earned that commission and more importantly, your buyer's loyalty!

Jul 30, 2016 08:33 AM #6
Rainmaker
889,179
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

My thoughts exactly.

Jul 31, 2016 11:57 AM #7
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Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

I had a deal almost die last week because the appraisal was 1,900 off. In the land of "everybody is broke" pricing right from the start is key. And before you say eat the difference and move on, the "Gross Commission" was 2,040 bucks. Yep, that was gross :)

Jul 31, 2016 10:27 PM #8
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Greg Nino

Houston, Texas
Providing Real Estate Advice 7 days a week!
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