One of the most often asked questions from my buyers is "Why didn't the seller counter my offer?" The answer depends not only on the offer itself, but also the sellers perspective.
Many buyers mistakenly assume the seller will always counter their offer and how much the seller will counter. In actuality, the opposite is more often the case.
While most offers do receive some kind of counter, I am careful to instruct my buyers not to assume how much the counter offer will be and that it is quite possible the seller may not counter at all.
There are a number of reasons the seller may not counter an offer: Here are just a few of the more common:
Seller may feel offer was so low and too far from their asking price to effectively negotiate.
This can result from offers where either the buyer is trying to "steal" ( I don't mean literally, but "steal" as in trying to get the property well below market value) the property, or the seller's price is either over priced or very high within the market value range of the property
Seller may be in financial distress and can not afford to bring money to the closing.
We've seen this situation many times over the past years since the 2008 fall out. Fortunately, we're seeing this less and less, but it may still be an issue for some sellers. Specially with buyers who bought short sale or foreclosure properties during the down turn and have realized that the $400,000 house or condo they bought for $100,00 requires the maintenance of a $400,000 house/condo to remain a $400,000 property.
Most sellers expect some haggle, not all have patience for hardball negotiations
Some sellers want or need to sell their property quickly for various reasons. While they expect a limited amount of negotiating, they have neither the time nor the inclination to go back and forth over and over. Perhaps also, they've already been through a negotiation session with a different buyer and no longer have the patience to do it again.
Seller may experience feelings of sentimental value and are unwilling to come down on their pricing.
Many sellers have spent years in their "homes", raising families, improving and customizing to their likes and needs and often are unable to look at the "home" as anything other than "Their Home". The sentimental value they place on the property, whether real or imagined may not coincide with the actual market value.
Seller may not really need or want to sell, but will wait for "their" price.
Real estate agents often will take listings for properties that are completely unreasonable in price. They take them thinking they can either get the seller to lower the price, or just to have a listing... period! When they do this they do neither the seller nor other agents and their buyers justice. Often there will be no possibility of the property even making the appraisal value, let alone get a cash offer for an over priced property!
Sellers who price their properties either at the very high end of a market value range, or well above often face the reality that it may be years before the price they "believe" their property is worth is actually worth the amount they are asking.
Recommendation for Buyers
When making an offer on a property, listen to your experienced agent. If they tell you the offer probably will not be countered, they probably and most likely know something you don't.
Recommendation for Sellers
Before listing your property for sale, ask your agent for comparable sale prices in your area. If you're property is over priced for your market, perhaps lowering the price or waiting to sell is a better alternative. You have to remember, the longer your property sits on the market, the more expensive it is for you: Additional mortgage and insurance payments.
And if you are over priced and your agent tells you we can negotiate when offers come, realize that if you are that much over priced chances are no offers will be forth coming.
Similar properties in a given market which are priced appropriately for that market, we expect to sell within the first 30 - 45 days or sonner!
Has your property been on the market longer than that?
CALL ME today 850.774.6582 to sell your property quickly and for the highest price possible!
Remember: The Panama City Realty Group Sells Homes, Condos and Commercial properties in Bay County, Florida
When you want your Condominium, House, Land or Commercial property or business sold in Panama City or Panama City Beach contact Jennifer today!. Directly: 850.774.6582.
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